Video advertising

I wanted to watch a video on Yahoo’s home page over the weekend. I clicked on the link and had to sit through a 30 second ad from netflix. When the video finally came on, it was the wrong video. I tried it again and had to sit through the same ad again. The wrong video showed again…turns out the video Yahoo was promoting wasn’t available. So I sat through a minute of commercials to not watch the video I wanted.

Last summer, NBC had mini episodes of “The Office.” Before each episode was an ad for FedEx. The mini episode was only 2 minutes long but the ad was 30 seconds long. The experience was kind of like going to an amusement park. I waited in line for a really long time only to be disappointed by the ride. But I had paid my admission, so what else was I going to do?

As webvideo content providers are looking to monetize their product, they need to somehow sell advertising. Conventional wisdom suggests there are two options, preroll and postroll. Preroll sucks for the reasons stated above, viewers will see the ad, but may be frustrated to watch an ad then wait for the content to be served and stop watching before the video is served. Postroll doesn’t fly with advertisers because there is no guarantee that a viewer will watch the content and then stay around for the ad.

The more inventive will use embedded advertising like television in the 50s. Lonelygirl15 will introduce a character who is a scientist and just happens to think Neutrogena can save the world.

Now there are two companies LiveRail and that are putting ads in the video. A link appears at the bottom of the page will appear selling a product. You click and a new window appears.

Beyond preroll and postroll it’s embedroll. liverail

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