Brands Grab Web Video's Long Tail


NEW YORK Xeni Jardin isn't exactly a household name, but she has a sizable following. As one of the creators of the popular blog Boing Boing, Jardin's a bona fide Web celebrity.

Now, Microsoft is hoping she can lend some small-wattage star power to its "I'm Initiative," which promotes Microsoft instant-messaging and e-mail by tying them to social causes. Through a deal brokered by Federated Media, Microsoft is underwriting episodes of a new Jardin-produced Web series, "Boing Boing TV World," which gives snapshots of international cultures.

The deal is one of several recently struck between small Web-video producers and big brands looking to connect with consumers beyond mass-market video destinations controlled by major media companies. The hope is that the comparatively high CPMs paid for small audiences -- combined with the time needed to create the programs -- will pay off with a brand impact deeper and more lasting than just plopping a pre-roll ad in front of a piece of content.

While the Boing Boing deal includes standard in-stream ads touting Microsoft, it also provides a personal touch: Jardin wrote a "shout-out" thanking Microsoft for making the series possible. Such touches give small video productions a leg up on the mass-produced fare offered by big media companies, said Chas Edwards, publisher and chief revenue officer of Federated Media.

"This is following a sponsorship model much like public television," he said.

The model favored by niche video producers comes with benefits advertisers are unlikely to find with larger entities. At Revision3, hosts of programs like "Diggnation" and "Tekzilla" incorporate advertisers into their shows, explaining offers to viewers. For example, last fall, Diggnation host Kevin Rose, who boasts a rabid following online, told viewers about a deal Virgin America was running. The resulting traffic "overwhelmed their servers," said Jim Louderback, CEO of Revision3. Rose's personal connection with his audience of "fanboys" gave the decidedly low-tech form of advertising greater power than standard placements, he said. Revision3 boasts that 48 percent of its viewers have bought products endorsed on its programs.

"Even if you're reaching 200,000 viewers, you're reaching them with far more impact," he said.

Therein lies the conundrum for advertisers. While all want interesting, innovative programs that skillfully weave their brands into content, striking deals with tiny programmers, even if they have loyal followings, is challenging. It often makes more sense for an advertiser to create its own content than piggybacking on a Web program with less than 500,000 viewers, said Brian Monahan, global lead for social media at Universal McCann, Microsoft's agency, which is part of the Interpublic Group. "I immediately go to the CPM of these things. What's the reasonable expectation if you're not going to have a runaway viral hit?" he says.

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