Thursday, July 19, 2007

Revenue & Advertisement Models in Online Video - Marketplace Survey

The state of ads in online video is still in its infancy. The following forms are in use today:
  1. Traditional banner ads. E.g. YouTube, Yahoo! video, Yahoo! music, etc.
  2. Pre-roll, post-roll, and mid-roll ads: ads that are played before, after, and during the playback of online video. This is by far the most common use of ads in online video.
    • There are different version of these "roll" ads ranging from the tradiational pre-roll (as in Yahoo! News, MSN Video) wherein the user cannot fast forward the ad prior to watching her video.
    • The advertiser inserting post roll ads based on the video context. E.g. Revver - insert Verizon ad after Prince music video featuring Verizon phones.
  3. Revenue sharing. Sites such as VuMe allow the user (i.e person who uploads the video) to share a percentage of revenue based on video's popularity. VuMe inserts ads in the video.
  4. Sponsorship and made for web content. These are made for web channels, i.e. Webisodes. E.g. (gossip channel) which runs on GoFish and other sites, Kohl's has sponsored Somagirls channel as it targets the 18-25 W demo. Yahoo! video channels such as "Sundance" channel is sponsored by Lexus.
  5. Contextual ads: Companies such as Scanscout and use technology to recognize words spoken in the audio tracks of clips. It then lets advertisers choose to have their ads appear at the moment in the videos when specific words are spoken. Another example is YuMe networks: similar to Scanscout, except the tagging of frames is done in India. These ads can appear during playback of the video.

We need to differentiate between UGC and non-UGC content. The former is more amenable to advertisement such as contextual ad, pre/post roll. Ads for UGC is best served by banner ads.


Nadim said...
This comment has been removed by the author.
Nadim said...

Don't forget about product placement. Brandfame - - is a product placement agency for online videos. It's bridging the gap between advertisers and independent publishers.