Umair Haque / Bubblegeneration
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Friday, August 03, 2007

Industry Note: How Not to Think Strategically About Video Ads


Is next-gen video advertising really going to be this lame?

I post this about once a year.

This is a case of regression - this is what advertising in the third world is already like, because, there advertising is unregulated, and media business models are largely nonexistent.

The result is flying, spinning logos, banners, ticker text, you name it - all on top of the video you're trying to watch. These are inserted at almost any point along the value chain - by the publisher, importer, copier, video store, reseller, street hawker.

If you're from the third world, click that link - I guarantee you'll chuckle at the irony of "innovation" now being essentially what your local run down video shop in Mombasa does to make a marginal dollar or two.

From a consumers' point of view, the result is a screen dominated by junk - content which is even more difficult to consume than interruptive industrial advertising.

The difference is, of course, that in the third world, consumers don't have a choice - but in the edgeconomy, they do.

And so it's unlikely that this kind of advertising - despite the fact that it will make clueless marketing droids drool at the possibilites for "engagement" and "awareness" - will ever gain significant traction.

-- umair // 11:29 AM // 7 comments


Comments:

Yep, in Brazil they love to put bloody spinning logos over stuff.

However, I can see this happening for a short-while when the industry finally move to a download model for programmes.

They're gonna pitch the advertisers on a line that a) ok, you can't stop people sharing this file and taking the ads out, but b) we can "watermark" the show with your brand-logo so people can't / won't remove it.

Remember, you can't expect the television industry to commit suicide. It may be that YouTube etc. disrupts it to pieces. But there are a lot of people in television and their *only* purpose in life is to flow money from advertisers to program makers and attention from program watchers back to the advertisers.

Take away that business model and those people are 100% redundant. They'll never vote for Christmas.
// Blogger phil jones // 3:22 AM
 

I saw an add like this pop up the other day on a video site - a bunch of polygonal characters ran across the bottom of the screen, advertising something (I think the DVD for 300). WTF?!? Annoying as fuck describes it pretty well.

This is the first time I've had a grudge with Flash-based video players. I've always liked the fact that I could hit YouTube on my Windows/Mac/Linux box without issue.

Now, however, if ads are going to fly all over and ruin the content, I'd rather ditch Flash entirely and go back to downloading files and watching those instead, compatibility issues aside.

Marketers are going to eat this stuff up too because it's new and flashy. It'll get worse before it gets better.

This is the same crap that websites tried to do a few years ago with Flash - flying advertisements hovering over all their content. My guess is that it'll get popular on the "trashy" bottom-feeder websites of the internet, and stay off of the more respected sites. That's my hope at least.
// Anonymous Dave Gallagher // 3:26 PM
 

Wait! You mean american TV doesn't show ads like this?

We brazilians have this stuff in every single soccer game. And the top attention these things get is when the ball goes under them -- not exactly the feeling they are aiming for.
// Blogger Tiago // 7:53 AM
 

Umair,
I've lived in 3 different US cities in the last few years, and in all 3 I have seen these things on news, sports, and sometimes even sitcoms. It's not normally just a logo, it will be something more useful like the weather, but it will say "sponsored by Walmart" and display in the corner during the show. So I'm not sure your characterization of this as a third world advertising model is correct.
// Anonymous Rob // 1:05 PM
 

This trend marks the beginning of the death of commercials - enjoy that thought for a moment. Alright, this implementation still sucks, but someone will figure out interactive, educational value in-video that has a chance to increase the viewer and advertiser value prop.

This "ad widgets for video" trendy sound-bite is just tricky enough to attract money, blah.

FYI - this one is a bit more interesting along the same lines:
http://www.permissiontv.com/
// Anonymous CoryS // 8:25 PM
 

Sadly I don't think this is third world advertising either. As one of the drooling clueless marketing drones (don't worry, I hate the job)I think we will see more and more of the spinning logos, scrolling text, etc.... It’s not my fault honest.

As broadcasters face falling ratings in an increasingly competitive attention economy they will try to squeeze as much out of advertisers as they can whether it be on TV or IPTV until there is a back lash against all the intrusive adverts. We will start to see pricing strategies for content based on programs with either no ads - if you can afford it then a sliding scale with increasing level of ads probably till its a 50-50 split of ads and content (or where you're just about at the level where you can't bare the stuff but the content is for free) using an entirely ad funded model. It will all be based on what you can put up with vs. what you willing to pay. The rich will get ad free content at a cost and the poor will get add heavy content for free or there abouts, and all the variants in between.

Is this what economists call a perfect market or have I got my wires crossed and it's the exact opposite?
// Anonymous Charlie Y // 2:44 PM
 

Sadly I don't think this is third world advertising either. As one of the drooling clueless marketing drones (don't worry, I hate the job)I think we will see more and more of the spinning logos, scrolling text, etc.... It’s not my fault honest.

As broadcasters face falling ratings in an increasingly competitive attention economy they will try to squeeze as much out of advertisers as they can whether it be on TV or IPTV until there is a back lash against all the intrusive adverts. We will start to see pricing strategies for content based on programs with either no ads - if you can afford it then a sliding scale with increasing level of ads probably till its a 50-50 split of ads and content (or where you're just about at the level where you can't bare the stuff but the content is for free) using an entirely ad funded model. It will all be based on what you can put up with vs. what you willing to pay. The rich will get ad free content at a cost and the poor will get add heavy content for free or there abouts, and all the variants in between.

Is this what economists call a perfect market or have I got my wires crossed and it's the exact opposite?
// Anonymous charlie Y // 2:45 PM
 
 

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