Direct Line Blog

Internet Week addresses monetizing online video

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While TV advertising made up $70 billion worth of ad spend last year and online video only represented $700 million in advertising spend, the online channel is growing, according to panelists at the The New York Television Festival’s afternoon series on Web video today.

The session, which was held as a part of Internet Week, included executives from Blip.TV, CBS Interactive and Jumpwire Media discussing how to develop, distribute and create video content for the Web. And while Internet video is still just a small drop in the hat for advertisers, it is a place where content and strategies are being tested and its measurability make it a great place to try new things.

One new thing for advertisers to try is to change the way they think about buying media.
Adam Elend, executive producer for CBS, said, “Buyers need to get the frequency and reach mindset out of their heads and begin to look at engagement.” How do you measure engeagement? Well a million hits on YouTube with 2 comments isn’t the most engaged audience, but 20,000 comment, now we are talking.

And who is engaged? Niche audiences for one thing. But while niche is the dream audience, it still has challenges. The issue becomes how to make it scalable. One audience member, a former media buyer for an ad agency mentioned her frustration with buying online where there is so much fragmentation, even on the thousands of good sites out there. So she said it is common for media buyers to just buy across the top sites.

Blip.TV spoke about different ways to buy display across different online videos in their network as part of a package based on vertical instead of buying against different videos. Sounds like a TV network model, but this time its measurable way beyond Nielsen.
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