The accessibility to content -- whether it's via mobile device, PC, or internet -- continues to grow at an unprecedented rate. Nielsen's "Three Screen Report" for the fourth quarter has confirmed the record growth, reporting internet usage and TV and mobile video viewership are up across all age groups.
With no end to the growth in sight, and more ways to consume, interact, and engage with both user-generated content and that created by companies, there's no question advertising platforms are also transforming to accompany the change.
Yet this is a transition that advertisers have been grappling with for some time, and debate continues over how and what platforms really give advertisers the most bang for their buck. Now, with added pressure from the global economic downturn, advertisers are especially anxious to see content work for them, but without the right delivery strategy, money spent could end up wasted.
Opportunity knocks
Industry reports forecast that online video ad spending will grow 67 percent this year over last to $750 million and then cross the billion-dollar mark in 2010. Online video advertising currently represents approximately 2 percent of all online advertising spending. And only 21 percent of internet video streams are currently being monetized. While the growth opportunities of online video advertising are huge, so are the challenges of online video advertising.
Addressing online video ad challenges
Not all video management platforms are alike, and because of that, there continues to be confusion about ad formats, as well as inconsistent terminology, reporting discrepancies, and how best to measure the effectiveness of online video ad campaigns. Fortunately, there are video management platforms that address these challenges and allow businesses to easily monetize their video assets and measure the success of their campaigns.
Video ad campaign basics
One of the keys to launching a successful video ad campaign is starting with a reliable management platform, one that not only fits within your budget, but can support the bandwidth you need now and in the future. A good video management platform should have pre-integrated support for ad insertion through a variety of ad serving partners. The video management platform you select should also allow you to use your current ad server.
Once you have chosen the platform, the procedure for creating a video ad campaign is very easy and it can be created in just minutes.
The first step to create a video ad campaign is to upload your video advertisement to the ad server and fill out a couple of forms. You'll need to enter the text copy for the ad as well as the link you want prospects to be directed to.
The format for your ad can be in a variety of formats including: WMV, H.264, 3GP, or FLV. Your ad can be automatically transcoded to a Flash video file once it's uploaded to the ad server.
As an advertiser, you need to make sure your ad content is focused, clear and organized in categories such as online advertising, online video, podcasting, or media. This will help ensure your ad gets served up for viewing with the appropriate video.
Once you've described and categorized your ad, you can then make bids on how much you are willing to spend per view of your ad. You'll be in competition with other advertisers so your bid will determine how frequently and prominently your ad will be displayed in the video preview window.
Bidding is similar to the bidding on online auction sites. If you're the highest bidder in a given category, your bid is rounded down but slightly higher than the next highest bidder. If you're not the highest bidder in your chosen category, the ad server will show you an estimate of your relative position and allow you to alter your bid.
When your ad campaign is up and running, you'll need to monitor how much your are spending, how close you are to your daily budget, and how many impressions were served in relation to the number of videos viewed.
This will give you an indication as to your ad position and how it compares to other advertisers. Monitoring your campaign will also allow you to fine tune the amount to bid per view and even the choice of the ad category that will ultimately improve the placement and viewings of your ad.
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