Our musings on making video personal
We’ve seen tremendous growth in online video ad consumption over the last couple of years. Online video advertising revenues topped $1 billion in the first two quarters of 2012, video ad views reached 9.9 billion in February, and YouTube just hit 1 billion monthly users.
At the inaugural SmartVideo Summit a couple weeks ago, I moderated a panel session of digital industry leaders, discussing how these changing market dynamics and new data-driven technologies are shaping video advertising strategies. The panel comprised several sides of the industry – from performance advertiser to exchange to platform – which allowed for a full spectrum perspective of where the industry is going, and how the lines of brand and performance advertising are blurring. So let’s dive in…
TV advertising dollars are shifting online to video and at the same time more online ad budget is being reallocated from display to video than to any other channel. One key reason for this is due to the fact that users are watching more online video – and where the audience is, dollars will follow. But online video is valuable for advertisers for additional reasons…
Improved targeting lets you reach the right viewer at the right time, but personalization takes this one step further by creating the most relevant ad. The panel discussed how personalization is transforming a “one-ad-fits-all” approach to a more effective “one-to-one” approach. Enter the creepy versus cool factor: how personal can an advertiser get in video ads? We will see these walls break down due to a changing of the times and generations. “Privacy queasiness” most likely won’t carry over in the coming years, as today everyone is sharing their lives online. Oren predicts that any privacy regulation will be more government led than as a result of consumer demand. Hoeppner agreed, supporting this statement by suggesting that if a customer was given the option to view a generic video ad, or a personal one, no doubt they would choose the personal. The key is that by immediately giving the viewer the option between the two, you can remove the ‘creepy’ factor, and potentially drive further viewer engagement with the ad.
Finally, we all know mobile is king, and its continued rise will positively effect video advertising. The challenge is learning how to leverage it, and how to monetize it more effectively, given the differences in user behavior and technology from PCs. Matt Young, Director of Sales & Mobile at BrightRoll explained that while the size and scale of mobile video ad inventory is there, one key issue lies in the lack of reliable cross-device and cross-silo identification for targeting. But everyone is optimistic: it will get there soon, and when it does, mobile is much more of a personal device and attachment, and the opportunities are great.
What is your perspective on the convergence of brand and performance advertising? What do you think is the role of targeting and personalization in video ads? Do you agree with the panelists? Feel free to share your thought in the comments below.