The CEO of Sharpe Partners says consumers expect the ability to engage with digital media.

For months there has been a perfect storm of buzz, panic and confusion about video on the internet-- and therefore on computers, cell phones, PDAs and MP3 players. It ranges from pointless discussions about what to call it -- "it's not video, it's content" -- to predicting that its power will somehow salvage the 30-second spot. There are the promises of fortunes to be made and lost along with opportunities squandered and re-invented-- all on the magic tape we've long known as video. Talk about the long tail.

The ongoing evolution of new media makes the use of video much more complicated. Some folks are focused on determining which length is most effective for which device. While this is a valid concern, the intuitive approach probably works best: the smaller the device, the shorter the video.

Even more ink has been spilt worrying about sources for video, and whether there will be enough to fill all the spaces. But visiting a site like www.youtube.com suggests that this won't really be a problem. And issues with revenue models are fascinating, but they aren't going to be worked out tomorrow.

But there has been little talk of the larger and more critical issue: What is the best use of video in interactive media environments? (After all, that's what computers, cell phones, PDAs and MP3 players really are.) Does the widespread availability of video mean equally widespread return of passive viewers, enraptured in front of screens (no matter how small), or can we be doing something different?

The appeal of the tried and true is obvious: Video is nothing if not a well known tool. We know what it does best, which is telling stories: short stories, long stories, boring stories and stories that sell products, i.e. commercials. Maybe they can be a little longer, like the BMW and American Express films. Or, perhaps they can cross space and time just like Dove's Felicity Huffman series. Or maybe they can just be simple commercials in banners.

All of these options are fine and good, but, like early silent films that gave the world silent theater (Shakespeare without words), they don't exploit the unique attributes of their medium: interactivity.

Can video be interactive? Or, more specifically, can video stories be told in a different way? The availability of interactive technology opens up multiple options for the story to be manipulated by the viewer. This is more than just consumer-created content that is viewed by more passive viewers. This is the possibility of something NEW. Scary, I know, but just take a deep breath and imagine.

Let's start with the most challenging online space for a marketer: online advertising. Unlike websites where experiments like www.homesweetcube.com are making progress because people choose to visit, consumers don't generally seek out online ads.

In online advertising the overwhelming urge is to run an existing TV spot and hope for the click. Or run a movie trailer not seen on TV and hope for the click. Or put a spot in a flash banner with a "Click Here" button and hope for the click. It's no wonder the results aren't that great, especially when compared to online ads that invite the consumer to interact, allowing them to explore the product in a banner or even play a game.

It's time to start thinking about letting video be interactive in the banner. And to do this, we need to begin by shooting video specifically for the interactive world, so that the banner can change as a consumer clicks to access information or respond to questions. We have loads of stories we want to tell consumers about our brands and products, so dreaming up the right content shouldn't be a problem. And with the real magic of Flash, we can make those stories interactive, too.

That's what online consumers expect in interactive environments: the opportunity to engage with the medium. And if we don't give them that opportunity, they can always click away (and they will) to something that recognizes that they are really in control-- because they are.

Kathy Sharpe is CEO of Sharpe Partners.

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