Archive for July 2008

Vote for SpotXchange!!!

July 31, 2008

Voting just opened for the Second Annual Streaming Media Readers’ Choice Awards <http://www.streamingmedia.com/readerschoice/>. Last year SpotXchange proudly took top honors in the online video advertising platform category <http://www.streamingmedia.com/article.asp?id=9730&page=4&c=31>.

This year we are excited to be nominated for two categories,

Video Advertising Platform
Video Advertising Network

SpotXchange has accomplished a lot in just one year. We can honestly say we’re the largest exchange of video ad inventory. We have established partnerships with over 400 publishers who globally reach over 100M people every month. Next up, we have our sights set on the casual gaming industry-an excellent source of high quality video ad inventory. SpotXchange has signed over 50 casual gaming publishers in the past year. Notable gaming publishers include Real Arcade, Slingo, iWin, NeoEdge and Lycos/Gamesville, to name a few.

On the advertiser side, we have run hundreds of campaigns-from large brands like US Army, Propel, Kmart, and Colorado Tourism, to local businesses like Maaco, Poconos, attorneys, auto dealers, etc.

We also opened a NYC office; expanded our sales bench; created a dedicated client services department; built a dedicated RFP response team for writing proposals to agencies; and we have dramatically expanded our publisher business development and account management team. Oh, and we filed for our patent.

Many analysts are expecting video ads to generate $4B+ by 2012. Kelsey projects local video ads will generate over $1.5B in 2011. And Gartner projects that online games will generate close to $1B in advertising by 2011. I’d say SpotXchange is poised to capture a large portion of the sector’s expected growth.

Please help us continue our march towards greatness by voting for SpotXchange on the Readers’ Choice Awards site – <http://www.streamingmedia.com/readerschoice/>.

Thanks so much for your support!

– Mike Shehan

ClickZ: Forecast: In-Stream Ads and Video Banners to Dwarf Overlays

July 24, 2008

The good news here is that the¬†SpotXchange network¬†isn’t soley dependent on the overlay ad unit. We can do overlays, but also do in-stream with companion banners.

Forecast: In-Stream Ads and Video Banners to Dwarf Overlays

By Zachary Rodgers, The ClickZ Network, Jul 23, 2008
Articles | Contact Zachary | Subscribe to Newsletters | RSS Feeds

Video overlay ads of the sort offered by YouTube will command just $184 million in ad spending by 2013, according to new research from JupiterResearch.

While that represents a significant rate of growth over the estimated $20 million marketers will spend on overlays this year, it’s tiny compared to the nearly $1.9 billion Jupiter believes they’ll sink into their in-stream buys, and the $1.3 billion it says they’ll invest in video banner ads.

“Advertisers aren’t very interested in [overlays] yet, and maybe won’t be,” said Jupiter analyst Emily Riley, who presented the findings at ClickZ’s Online Video Advertising Forum in New York yesterday.

YouTube continues to dominate video consumption. According to Jupiter, Google sites represent 34.8 percent of all video views on the Web, while none of its contenders command more than 7 percent. Yet, Google faces continued obstacles to monetizing YouTube’s vast audience and repository of clips. That’s partly because marketers prefer pre-roll to overlays and partly because they’re not comfortable with user-generated content environments, Riley said.

About half of advertisers feel comfortable with user-generated content, and many of them seem to be uploading content and creating branded channels on YouTube and other sites — as opposed to buying media. Also at the Video Ad Forum, Starcom USA Video Innovation Director Chris Allen indicated many of his agency’s clients have created branded channels, while few have placed in-video ads.

In the same panel, YouTube sales manager Brian Cusack acknowledged the site needed to do a better job explaining its value proposition to users. He said the company had seen improved acceptance with some categories and agencies.

Riley and other panelists suggested spending growth is coming from ads placed in professionally-produced content. Hulu VP of Sales Kevin McGurn noted the site is serving ads against “the vast majority” of its streams. Hulu’s content is all professionally-produced. YouTube on the other hand, serves ads on a maximum of 3 percent of its streams.

Meanwhile, semi-professional video content produced exclusively for the Web, such as Wallstrip and RocketBoom, have attracted loyal audiences but will likely need to pool their ad inventory into vertical networks to appeal to advertisers. “We do see this maintaining its niche appeal,” Riley said. “The better you can aggregate this content, the better advertisers can get access to it.”

AdAge: Most Say Ads a ‘Reasonable’ Cost of Free Online Video

July 23, 2008

AdAge covered an interesting study on the acceptance of ad-supported online video content.

I am interested to know if acceptance would change if survey respondents were asked specifically about retail sites who produce informational videos (WineLibraryTV comes to mind–note: I’m just using the show as an example as I’ve never seen an ad on any episode I’ve watched). For me, I would still watch Gary Vaynerchuck’s wild tastings. He’s so entertaining, I’d take an ad–even two! But, a host that wasn’t so engaging…I’d probably go another direction.

Here’s the article,

Most Say Ads a ‘Reasonable’ Cost of Free Online Video

Survey: Viewers Most Amenable to Ads in TV Shows, Movies but Not Amateur Video
By Megan McIlroy

Published: July 17, 2008

NEW YORK (AdAge.com) — Good news for the growing number of ad-supported video services popping up online: The majority of digital video consumers will find the inclusion of advertising a “reasonable” expectation for accessing free online video content.

That’s according to a new survey of U.S. internet users aged 12 and older conducted by market-research company Ipsos MediaCT in February 2008.

Give and take
“Nobody is going to tell you they love advertising,” said Adam Wright, director of Ipsos Media CT. “But the [survey] confirmed the notion that people get the give and take. That can be reassuring for many of the people who are trying to crack the code [of ad-subsidized video models].”

The percentage of internet users who found advertising to be a reasonable price of admission for free video content varies by content but, in general, respondents were more likely to embrace advertising in long-form professional programming. At least three in four digital video consumers said they would find it “reasonable” for advertising to appear in the free digital distribution of full-length TV shows and movies, while about two out of three said the inclusion of advertising would be reasonable with free access to music videos, short news or sports clips.

“If it’s premium content, people are willing to sit through ads. It’s something that consumers already expect,” said Mr. Wright.

Bad news for amateur content
But it’s a different story when it comes to amateur digital content, where viewers are much less likely to accept advertising as a price of admission. Just over half of the respondents in the survey who have downloaded or streamed a video online say they would find it “not reasonable” to have advertising embedded within free amateur or homemade video offerings.

That finding could raise an important question for video-sharing websites like You Tube that are diversifying content to include longer, professionally produced material. According to Mr. Wright, these providers will have to “carefully consider” ad-subsidized models since their current audience has grown accustomed to free streams without any advertising.

One way to approach advertising for different types of content is to use different kinds of advertising, Mr. Wright said. For instance, an amateur video might use a 15 second pre-roll or a pop-up ad, depending on consumer reaction.

Said Mr. Wright, “You have to get into what are consumers are OK with and what they aren’t, and [ask] when do you start to reach a negative impact?”

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Here’s a selection of responses from the Ipsos MediaCT survey:

How reasonable is it to have advertising in the following free video content?

Full-length TV show:
82% Very reasonable/somewhat reasonable
18% Not very reasonable/not at all reasonable

Full-length movies:
75% Very reasonable/somewhat reasonable
25% Not very reasonable/not at all reasonable

Music videos:
68% Very reasonable/somewhat reasonable
32% Not very reasonable/not at all reasonable

Short news or sports clips:
63% Very reasonable/somewhat reasonable
37% Not very reasonable/not at all reasonable

Movie/TV trailers or previews:
62% Very reasonable/somewhat reasonable
38% Not very reasonable/not at all reasonable

Amateur or homemade video clips:
48% Very reasonable/somewhat reasonable
52% Not very reasonable/not at all reasonable