In 2009, online is the only advertising channel universally tipped for growth. Of course, ‘online’ is not a homogenous advertising platform with each of its component elements growing the same.
A currently hot ‘online’ topic from a couple of angles is the viability of web video, as web-content producers and advertisers try to overcome barriers to uptake and usage.
From a web content producer perspective (web series etc) whilst consumers are happy to watch content online, they are not loyal in the same way they are with content on television. It is not uncommon for online viewers to drop by 64% from the 1st episode of a web content series to the 2nd one, followed by an ongoing gradual decline in viewers. Most web series’ don’t get past the 10th episode.
This fickleness of audience and the historical ‘post and pray’ mentality of the content producers is not really enticing advertisers, who want guaranteed audience numbers to either advertise with / in or underwrite this type of communication. So a number of companies are now syndicating shows across their ad networks, like the Seth McFarlane web series “Cavalcade of Cartoon Comedy” on Google’s AdSense (almost 30 million views since July 08) to attempt to solve the viewership and tail off issue. This has now moved the conversation from reach to engagement.
Advertiser created video content it is expected to grow from 2% of the current online advertising market (US) to 10% in 2013, but that seems to be based on an increased expectation of content personalization through user interaction and how to use existing vaults of video content effectively.
Nationwide, (a UK financial services company) recently created a personalized web video content campaign. (This was pre-existing content that they re-edited) Users could experience 16,000 different content versions through interaction with the ad, based on a broad number of user defined variants included in the campaign. The result, a 300% higher click through rate for products and a 100% increase in sales conversions compared to previous non personalized video content campaigns. Who wouldn’t want those numbers?
However one commentator firmly believes in the online space text will be preferred to video. My favourite of the many reasons given is that it is much easier for office workers to read text online and get away with it - video equals slacker.
