Video Research Focus

The ad landscape for professionally-produced online video has advanced significantly in the past 12 months.

The initial research focus by the networks was determining whether online viewing was cannibalizing over-the-air viewing. It makes a difference because it doesn't cost the network any more to have 100k additional viewers over-the-air. However, if those same 100k viewers watch online, the network incurs significant bandwidth costs. (Content delivery networks are more smartly delivering download-and-play streams by pausing stream delivery when the video is paused. This prevents wasted bandwidth in case the viewer doesn't come back to watch the rest of the stream.)

With sufficient evidence (for now) that online viewership is incremental, the primary research focus by networks is optimizing the ad experience for viewers. They are sharing best practices with advertisers and agencies. Fewer advertisers are using the same spot throughout an entire episode (for which they "own" that consumer-viewing experience). Rather, they know that to enhance the user's experience, they have to rotate creative. For example, on Hulu, DirecTV rotated their TV spots about a fictional cable company it is mocking. You won't see the same DirecTV spot twice.

Four or five months ago, online viewers were barraged with the same TGIF or Palm Centro spot (with the mini-me's) four or five times during an hour-long episode. Not every show is an "owned" experience anymore, with creative wear-out concerns and negative repercussions very realistic possibilities.

Other general findings show that the more interactive and/or memorable the ad experience, the more positively it reflects on the advertiser. Hence, a "branded canvas" (during a commercial pod) with multiple interactive components rates significantly better than a flat 15-second or 30-second spot. A Media Contacts advertiser, Choice Hotels, is running on NBC.com with a Pac-Man like game during the break.