Online video advertising is on the precipice

Last year the IAB established a Video Council, consisting of publishers, agencies and providers, chaired by Rob Black at UTarget.Fox. This group is working full steam ahead to produce a new online video resource and printed publication to educate marketers on the best ways to use advertising in and around online video content. This resource will include an update to our guideline standard released last year. With over 35 senior representatives from different companies taking part, it’s involving a lot of coordination but is very quickly bearing fruit.

18 months ago the IAB produced a handbook for video and in that time, the market has changed dramatically. Already it is abundantly obvious how mature the video industry has become, fuelled by the flood of people in the UK now watching video online of an increasingly better quality. Suddenly, advertising around video content is more than a little appealing, it is incredibly appealing.

As pressure mounts from the likes of Ofcom to increase the speed of broadband across the UK, video is only going to become a better and more integral part of our lives and business. In a time of recession, when advertiser money really counts, the smart marketers are already looking to online video for its branding, impact and interactivity potential. If the ordinary people on the street (i.e. consumers) intend to save money too, I believe they will be more likely to spend time accessing free content offered by online video. “Shall we go to the cinema tonight for a tenner or, for free, watch the last few episodes of Lost on our laptops with a few ads?”

Right now, search and display take the lion’s share of online ad revenues. In a year or two’s time, could we see a third contender vying for a large share of the market? Yes. If there’s one developing area of online advertising to keep an eye on, this is it. Social media and mobile are, equally, websites and devices that people spend a large percentage of their time using. While marketers look to widgets and other, innovative and effective forms of advertising, could it be video that is the primary way to penetrate these hives of consumer activity? One clear trend on both social networks and mobiles is the sharing or viewing of video clips among friends.

We’re aiming for a release in March for our updated video guide, which I’d highly recommend keeping an eye out for. In 2009, I think we’re all going to need it!

Internet: Useful Tips:What Is The Future Of Video Advertising?

  • The next big thing, in my opinion, is re-edited tv material (and film material) with advertising “mashed” into it and possibly put to music. As a new art form/ business model.

  • Jack,

    Completely agree how the market has changed dramatically and how it’s taking off with increased video viewing, particularly on laptops.

    We focused on the laptoppers in a Futurescape article last September as the single most important online audience segment, particularly for the youth market, in determining the success of new Web shows.

    Looking at the first version of the handbook, it’s remarkable there are no references to sponsorship of original Web series, not even Lonelygirl15.

    As our own research of Web shows has proven, these productions have really taken off in the 18 months between the first edition and now.

    So which shows and product placement campaigns are you going to include – Sofia’s Diary, Sam King, Kirill, The Gap Year?

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    Hi Colin,

    We will be covering sponsorship of content and web shows, yes. The guide in the link above is over 18 months old, which is why it doesn’t go into detail on some of today’s typical methods of online video marketing.

    It does highlight how tricky it is to talk about video when there are so many options though. I’m interested in ‘The Pool’ project going ahead in the US at the moment, more research like this will help the market: