Why Online Video Advertising Has Fallen Short Of Earlier Forecasts ~ TechNeem

Digital Broadcasting Group Chief Product Officer Matthew Corbin (formerly at YouTube and video Tremor said, "With comScore estimates that 100 million people will see a billion pieces of video content per day, one can not deny that there are more opportunities than ever for advertisers to take advantage of the video".

If we closely follow the expectations of investors and analysts forecasts, we may know that online video has not met expectations.

But why?

1) Starts with YouTube Domination

While online video has exploded, one could have predicted growing influence of YouTube videos on the live action.We have argued that YouTube strategically sitting on revenue prematurely once their rule was secure did they start doing the things that make more money for producers, finally adding a game-changer followed rehearing and analysis.

2) It is not about semantics

The low-hanging argument is "lack of definitions". It does not matter if the "video advertising" includes in-banner video about the article or a video pre-roll video before. Eventually, online video is all about, which is one of the video components.

3) remains a significant factor in the UGC VOLUME

Generated content remains one of the most popular content. With the distribution companies 'commissioners' UGC and many sellers will not pay the fees that have a high, we see more information about the monetization of UGC as ever. Combined with unlimited inventory, this pulls down ad growth rate of total income no mistake about it. Instead of paying the premium advertisers get away with paying less to get users to be able to display ads next to content UGC cheaper. Not all inventory is sold to UGC. There are plenty of unsold inventory in order to lower market prices.

4) the measures FALSE

The clickthrough rate (CTR) has an acceptable level (arguably) for banners measure and display the search results, why on earth should be for the video? Typically, many average viewers even know that you can click on a video? The video is from the brand brand strategy, and works with or without clicks, but when you buy the ad "optimized" based on the CTR, then naturally it will take two steps forward and one step back.

5) Lack of transparency

While the definition of what is "online video advertising" is not really a problem, the lack of transparency, especially when it tries to differentiate itself in the flag and release inventory flow, and consequently prices . If advertisers are conditioned to pay in the stream, but banner, it distorts reality and expectations.

6) YouTube Pre-order ROLL PARTY

Like it or not, remains the main tool in the toolbox marketing video pre-roll. During a 30-second TV spot and adapt to the web is simple. Fortunately, we see 15-second ads are the norm. With YouTube having so much of views (over 40% according to comScore), only recently and include pre-rolls, did not surprise video advertising to meet the expectations previously set. According AccuStream, the use of digital video media containing 89% by 2010 with the addition of YouTube pre-roll inventory.

7) RATIONALIZATION

"We have made progress. The demand and inventories are growing, and standards, as a large and VPAID have facilitated the work. But the purchase of digital video and realize that you bought is still too difficult." Notes Brett Wilson, TubeMogul.

8) Cobra Commander is derived HOLLYWOOD

Marketers will spend more money on the Internet when they see this kind of content that requires them to do so. Removed with NBC, Disney and Fox free, ad-supported distribution, provided that advertisers need more convincing before opening.

9) MOBILE Wild Card

U.S. mobile advertising will surpass $ 1 billion for the first time, most of which comes from the display and search ads. Naturally mobile can be a powerful engine for video content, video, but not necessarily pre-roll. Breaking the iPhone in the mobile market, companies have been stifling mobile video.

Lowered expectations

Perfect storm of Google in search is not repeated in the video: no clear winner in the video, and those that survive will be regarded as relatively successful investment they need to thrive. Is the online video advertising to 5 billion dollars in 2014?

Until the online video industry acts together, these forecasts will prove as false as their predecessors.