Apart from the fact that we are in one of the worst recessions in recent memory there are a host of reasons why advertisers are struggling to spend money with online video.
Before I get to that here are some statistics that gave me perspective: Ad spend for online video (US) in 2008 approx $500 million. Ad spend for TV (US) in 2008 approx $70 billion.
Below are six reasons why advertisers reluctant to jump on the video band wagon. They come from Live Rail’s Q3 2008 State of the Industry brief.
No True 3rd Party Ad
Serving Almost all video ad servers require that campaigns be manually booked within their own system, and in many cases, that the publisher is integrated directly with that platform. There is still no ubiquitous technology analogous to “ad tags” from the display advertising world.
Reporting Discrepancies
Publishers are continuing to experience confusion and frustration as publishing platforms and ad servers deliver different measurements on performance.
Confusing Array of Ad Formats
From “linear video interactive ad with companion ads” to “non-linear non-overlay ads” the industry has succeeded in developing a proliferation of formats, but the abundance of options (and confusing terminology) has created difficulties for advertisers in terms of purchasing decisions, delivery of creative and measuring engagement, delivery and ROI.
Non-standard Integrations
Video players and ad servers do not have a standard protocol for the request, response and display of advertising. Publishers who wish to receive ads from one partner may find that they need to undertake a totally new technical integration in order to receive ads from another; this has prevented fluidity in the market for technology and among ad networks.
Inconsistent Terminology
Although the IAB has tried to set standard definitions for metrics and units, the industry
has still failed to adopt a consistent lexicon for the description of both units and metrics.
Measuring Effectiveness
Whereas direct response advertising can easily be shown to be effective or not, brand advertisers using online video have difficulty proving the effectiveness of their campaigns. Technology to measure metrics like “brand lift” will help prove the usefulness of video advertising improving ROI and enhancing optimization.
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