Thursday, September 27

Microsoft Reduces Ad-To-Video Ratio In New MSN Video

TO ATTRACT A LARGER AUDIENCE, Microsoft on Wednesday launched a new
version of MSN Video with more dispersed ad-placement, and a
centralized page where viewers can simultaneously stream videos and
search through the entire MSN Video catalog.

Visitors to MSN will now see an ad after every three minutes of clips.
Previously, they were subjected to a video ad for every two
clips--but, because some of the most popular clips are only seconds
long, viewers were put off by the disproportionate ratio of ads to
content, according to Rob Bennett, MSN's general manager of
entertainment, video and sports.

"We knew it was time to change the frequency of ads when people were
getting more ads than content," he explained. "It's about getting
people to consume more video--that's our strategy."

Slowly but surely, online content carriers have come a long way since
the days when running a video ad meant streaming a re-purposed
30-second TV spot before every sliver of content.

"It obviously never made sense to run a 30-second ad against a
10-second piece of content," reasoned Forrester Research analyst
Charlene Li.

But intense competition for audience share is demanding that MSN and
its myriad rivals improve their offerings--and do it fast. Last month,
YouTube said it would begin overlaying ads on the bottom of its online
video, rather than resorting to streaming that interrupts the viewing
experience.

To engage viewers for as long as humanly possible, the new version of
MSN Video also includes "always be watching" technology, which lets
consumers browse and view videos at the same time. In addition, MSN
Video users can now create video playlists to share with friends.

What's more, the browsing experience is no longer limited to a single
vertical within MSN's video archive. From a single page, viewers can
access content related to news, money, sports, and autos, among other
categories, along with user-generated videos from Soapbox.

To further increase its reach and presence, MSN Video is presently
being integrated into every MSN channel.

Bennett, meanwhile, insists that MSN Video's content and brand
partners haven't seen anything yet in the way of innovation. The
recent arrival of aQuantive to the Microsoft family, he said, will
result in major advances.

"We're having a lot of discussions with [aQuantive's ad serving unit]
Atlas about how we can improve ad serving on MSN Video," Bennett said.
"We're looking to greatly improve the sales process."

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