Video Neutral

Let's say it together....video neutral...

I've read three or four articles today where the concept of "video neutrality" has popped up. Is it the new buzz word? Who knows, but the concept should be taken seriously.

For a long time we've lived in a world of 30-second commercials, 30-minute sit-coms, one-hour dramas, 2-hour movies and 3-hour football games. We watched television on our televisions, we went to the movies to see a movie and we listened to music on our stereo. Life was neat and orderly - Monk would like it that way.

But all that has changed. Today we get our movies on our computers, our music on our cell phones and our TV on our i-Pods. All fine and well for the consumer. What is life without choices?

And with those new choices come new habits. And those new habits and choices have given rise to the concept of video neutrality.

Not too long ago, television was the only place you'd see a 30 second commercial, and all you'd see on television was 30-second commercials (sure there were :15s and :60s, let's not split hairs). "Video neutral" now means that you can't simply create a :30 and had it to your broadcast team to place the ad. What if your new media team wants to use it in an online campaign? What if your print team needs it to run on a magazine's web site? You may even sneak it into theaters or on a DVD trailer.

There is no such thing as a broadcast spot. Video campaigns must be designed and produced to be effective and connected in just about any video form immaginable. They must be flexible, scalable, branded... in short, neutral.

Online Amen

CBS Sports announced that 3.4 million streams were accessed for its "Amen Corner Live" during its coverage of the Masters. I'd like to say it looked great, but I couldn't get in!

I believe this success (the second such success for CBS Sports following the NCAA Tournament) domonstrates the growing popularity of online video, and its increasing value to advertisers.

Once again, CBS Sports provided coverage of a high-profile sporting event to an audience that could not view it over it's broadcast network. It found a dedicated (and very targeted) audience and delivered unique and compelling content. And isn't that what the interent does best?!

Make no mistake, that 3.4 million number certainly ranks far behind the broadcast audience on Sunday as Phil walked up the 18th fairway. And CBS will not get rich quick by selling commercials in the stream on a broadcast CPM basis. But I doubt that is the intention.

This year, technology provider CDW was the title sponsor for the coverage. In the future, online only sponsors will likely receive customized packages that offer interactive in-stream ads, surrounding banners and links, on-air and online promotion, access to registered users and more. All intended to provide the marketer the same thing the consumer gets... an opportunity for something they can get with broadcast.

Consider the promotional power of such a campaign for a golf equipment manufacturer! They pay millions to get the top players to carry their clubs. Imagine a link to the tournament winner's brand of putter as he sinks the winning putt. Priceless!

TANSTAFL pt. 2

So now Disney/ABC will be offering free downloads of episodes of some of its most popular series. It didn't take long to move from the $1.99 per episode to the free with advertiser support, as predicted.

And ABC is doing this the right way. The download episodes will not be simply the over-the-air version repurposed. ABC promises to use exclusive online sponsors whose commercial messages will be presented in nontraditional formats; games, banners and others I'm sure. CBS and the NCAA recently had success reserving the online advertising opportunities for the online sponsors only.

I predict this is just the tip of the iceberg. The interactivity of the format will lead to far more creative applications. While broadcast viewers may only see the product placement in a future episode of Lost, broadBAND viewers will be able to link right to more information on the product, download a coupon, ask for a free sample or buy the product without missing a moment of Lost.

Also of note is that Disney/ABC is keeping this in house, or on-site as it were. No iTunes in this experiment. Aside from the fees iTunes would charge, ABC remains the sole distributer of the product. The web provides everybody the opportunity to become both producer and distributor of content. The current television network system is in danger of becoming unnecessary middlemen in the distrubution process. ABC needs to maintain a high profile in association with the hit programs it helped to create.

Online Searches Lead to Offline Buying

Online Searches Lead to Offline Buying

The Center for Media Research reports that a recently released comScore study begins to show the link between online information gathering and offline buying. According to the report, 25% of searchers eventually purchased an item directly related to their search. Of those purchases, the majority (63%) were made offline and 37% were made online. The study also found that not all online purchases were made during the initial search session. Overall, 44% of the online purchases were made during the initial search and 56% came through a subsequent internet session.

In My Opinion
This new study by comScore (sponsored by Google) adds a new dimension to the search-to-purchase picture. ROI is easy to calculate when an online purchase can be tracked from a specific banner placement or search result. That is online accountability at its best.

Data is also available on users who visit a site and do not make a purchase. This study indicates that instead of viewing those situations as lost opportunities; they should be treated as future opportunities. Simply because a purchase is not made on an initial visit, it does not mean a purchase will not be made. In fact, it is more likely that the purchase will be made at a later time, either online or offline.

And while it is not directly addressed in this study, it would seem obvious that the original search will return multiple results, giving users (potential customers) more than one option if and when they eventually make their purchase.

What This Means to Advertisers
Advertisers should always keep in mind ALL the unique advantages of their online presence. Direct ROI calculations and user tracking metrics have always been at the core of interactive evaluations. But the web can do so much more. This study shows that effective CRM and online-to-offline branding can lead to even higher sales.

With the indication that more sales occur after the initial visit, marketers should provide an incentive for the customer to return at a later date. An online coupon that can be redeemed offline, online purchase upgrade codes, email registrations are all options that can make one site stand out among the rest and secure that follow-up purchase.

This study also shows the importance of consistent online/offline branding. With the majority of online searches leading to purchases offline, customers expect and deserve the same experience online as they see offline, and visa versa. Convergence is here and the two worlds need to be viewed as one.

Internet Ad Spending on the Rise

Internet Advertising Spending on the Rise

According to MediaPost Publications, ZenithOptimedia has revised its advertising spending forecast for the coming years. Predictions from the agency see Internet advertising overtaking outdoor and radio in the next 2-3 years. That upward trend for Internet advertising is a revision from the Dec. 2005 report. The agency notes that the Internet is the fastest-growing major medium and is now established as a mainstream medium.

In My Opinion
The growth of interactive advertising should not raise too many eyebrows. After a tumultuous “discovery” period, interactive advertising has begun to show it can deliver impressive results. What was once the domain of online only plays, traditional marketers now realize that interactive can be, and should be, a part of their marketing mix.

The real question is where does this growth come from? Are marketers adding to their advertising budgets to include interactive or are they shifting dollars from one medium to another? To get they answer, you just need to follow the eyeballs. As consumers spend less time with traditional media, the effectiveness and efficiency of those media as advertising vehicles also declines. “Old media” are being replaced by “new media” in the consumers average day, and the advertising money will be close behind. Marketers are now at the point where they are revisiting their marketing mix, and shifting budgets to follow their customers.

What This Means to Advertisers
There is no time like the present. The projected growth in Internet advertising demonstrates that current online advertisers are investing more, and new advertisers are entering the market. Establishing and maintaining an online presence should now be a priority (if it wasn’t before).

However, it is important to view this new medium as just that…new. Just as newspaper advertising metrics did not apply to radio, and radio metrics did not apply to television, interactive advertising requires a new way of thinking. Interactive advertising allows you to develop individual interactions with your customers. It lets them find you, and find what they want from you in a matter of seconds. Whether it is search, banners or podcasts, you can never expect to do things the way they’ve always been done.

Most importantly, don’t enter these waters alone. Choose a partner that can help you navigate the infinite options available and chart a course for online success.

Online Video

Online Video

As more and more users are capable of viewing online video, its use as a marketing tool becomes more and more viable. Two issues then begin to surface: how does a marketer effectively communicate a message in this new environment and how is that message distributed in content that has both reach and relevance? In the Friday’s (4/7) MediaPost Publication’s “Just an Online Minute”, author Tobi Elkin discusses the “reach and relevance” issue. She profiles an online broadcast company called The Fifth Network.

In My Opinion
Traditionally, advertising on broadcast television provided an advertiser’s message with reach almost inherently. Television is, after all, a reach medium. But the relevance was not always there. Television programs appealed to a broad audience and advertisers understood that there was always going to be waste in an untargeted medium. Still, the benefits of building their message with the core strengths of television – sight, sound, motion and emotion – outweighed the lack of targetability.

Now, online video can take those core strengths of video and direct them to a very targeted audience. But how can you be sure that the message is getting out to a large enough audience? That is where companies like The Fifth Network and others come in. By aggregating and segmenting the video available on the web, they can deliver a number of very targeted sites in a package that offers the necessary reach without losing any of the relevance.

What This Means to Advertisers
Aggregation of this type makes the interactive space a little less intimidating for those just dipping their toes in. It could be a daunting (perhaps never-ending) task for an advertiser or its agency to seek out enough of the most relevant sites to reach a large enough audience. It might just be easier the do things “the way they’ve always been done”.

Content aggregation is nothing new on the web. But by providing the reach advertisers are accustomed to off-line and adding the targeting and accountability they expect from online, clearly one hurdle has been lowered in the race to online video.

It is the agency’s responsibility to walk the client through this transition. If the client is shifting money to a new medium, they’ll want to be assured they are not shifting effectiveness. By understanding the off-line metrics the client has relied on for so long, the agency can translate the traditional metrics to the evaluation of the online campaign.

More on the ad message and content later!