Tuesday, September 12

Making Video Advertising Accountable to Consumers

Jeremy  Lockhorn, group director at Avenue A | Razorfish writes:

"We've talked for years about the importance of accountability in this medium,  and the metrics we've used to define that accountability have gone through a  rapid evolution. It started with clicks and CTRs ; then we discovered we could track post-click behavior,  conversions, and eventually lifetime value. Rich media brought a host of other  possible measures: interaction rate, interaction time, individual action rates,  and more. We layered in surveys to measure attitudinal response. At the end of  the day, it all comes back to the marketers' bottom line and accountability in  terms of ROI.

Now, we're waist-deep in yet another evolution of accountability. The term  "Web 2.0" may be on its way to worn-out buzzword status, but the ideas and  technologies behind it -- the power of social networking, community, and  user-generated content -- are turning accountability on its head the same way  they do everything else. Emerging advertising platforms will only live in a  world of consumer control. And in that environment, accountability will include  all those ROI-focused things and consumer control.

This change is most evident in how the industry is shifting its thinking  (and, finally, the corresponding ad models) about online video ads. This is such  a hot commodity because video, like so many emerging platforms for digital  advertising, is full of both tremendous potential and paralyzing risk. There's a  ton of experimenting going on now, and that's a good thing. It's only going to  get more intense over the next year.

Video, at least in terms of advertising, tends to disguise itself as a bridge  between on- and offline. Though it can serve that role, don't be fooled. Simply  repurposing TV spots is ultimately not the best way to leverage the medium's  power. And though most online video advertising today does just that, there are  obviously other ways to approach it. Those publishers and marketers who do  approach it differently are really starting to understand this new idea of  consumer control and accountability to the audience. Let's take a look at a  couple examples that may tell of things to come.

Keep in mind that one key theme these examples share is they put the user at  the center. They respect that there's somewhat of a backlash against intrusive,  irrelevant advertising, and they seek to make the ads accountable, first to the  consumer and second to the marketer's bottom line. They seek a fair trade: value  for the user in exchange for attention.  

ABC's Online Video Test

ABC built a unique online experience from its TV broadcast programming and  thought carefully about how to integrate advertising. The test was successful  enough that the network is going to relaunch the application in the fall with a  tweaked interface.

Much has already been written about the test, including some impressive  marketing results from the included ads (87 percent ad recall). I'm sure there  are many reasons for its success, but I think two factors played a big role:  interactivity and the lack of clutter. We all preach interactivity in the  digital space, but it was refreshing to see a publisher open the gates --  especially in an environment where the temptation is to stick with  noninteractive and ad avails that simply mirror the TV model.

In terms of clutter, ABC practically eliminated it. The number of commercials  per episode was scaled way back (one per pod, I think), and it was the same  advertiser throughout the episode. You have the audience's undivided attention  and don't have to worry about other things in the channel competing for it.  Novelty was likely a factor as well, and we may see results trail off as  consumers adjust (as we've seen with rich media formats). But I suspect we'll  still see really great performance even after the experience becomes more  commonplace.  

To me, the environment ABC built is the kind of innovation we need more of to  really make video work online. Again, the experiment succeeded because the  network was accountable to the consumer first and the bottom line second.

YouTube's New Ad Models

YouTube went a step further with the recent  introduction of new ad models. Custom channels allow marketers to develop a  unique interactive experience without forcing users to leave the site. It's the  same principal that drives the success of many rich media formats: Don't get  intrusive, and don't force an immediate click-through. Instead, make your  content, in this case, your advertising, relevant to users and available in the  context of whatever they were doing. It's why expanding ads are becoming the new  standard.

In the second model, YouTube is allowing video ads but requiring they be open  to ratings and commentary by users, just like any other video on the site. This  is so simple, but it's a brilliant experiment. It forces the advertiser to be  accountable to the consumer. If your ad stinks, people will give it bad ratings  and trash it in the commentary. Either it won't be watched or it'll be watched  by people driven by morbid curiosity.

That may well be what consumer control of advertising looks like for the near  future. Yeah, it's scary. But in reality, your brand has always been about what  the people think of you, not what your advertising tells them to think. Smart  marketers are already embracing this, taking those calculated risks with the  knowledge that experimenting now will lead to expertise and leadership later.  

I'm out of space here, and I didn't get to talk about in-page (or in-banner)  video, where there's also some interesting experimenting. Look for that next  time."

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