Over the past 50 years, the Internet has evolved into many different forms, grown to include over 90 million websites and attract more than one billion users worldwide. In recent years, with the increased penetration and the speed at which we can access information, usage habits have changed, ultimately changing the way we live our lives and absorb media. One of the most recent shifts has been the consumption of online video.

The following provides an overview of the online video market and examples of the different types of online video programs Empower has produced for clients.

Viewership

Whether the content is user-generated, informational, educational, or entertainment, consumers continue to increase online video views and time spent watching. A major misconception regarding online video demographics is that young men are the primary viewers. While young men are frequent viewers, women and men of all ages have seen steady growth in recent years.

Surveys show:

• 7 out of 10 Internet users have watched online video, consuming 11.5 billion videos each month.
• Online video users watch shorter videos averaging 3 minutes in length.
• In total, the average online video user consumes 4 hours of video each month.

The Evolution of Formats

The variety of video players and sites now offering video has created many different formats and advertising opportunities for marketers to reach and engage viewers.

The following are the three main formats of online video advertising:

1. In-stream: Linear

• Most commonly known as pre-roll, mid-roll, and post-roll.
• Built on traditional television advertising platform.
• Empower recommends no longer than a 15 second spot to protect users’ experiences.

Empower Example:  Red Robin Restaurants sponsonship of the Food Network Challenge.  This example has a sponsorship banner and logo at the top accompanied by a :15 pre-roll spot and companion unit. 

 2. In-stream: Non-linear

• Newer form of video advertising.
• Commonly known as overlays; appears at the bottom of video, but does not interrupt viewing.
• Similar to television network promos on-air, but offers the ability to click or interact with the ad.

Empower Example: Bush’s Grillin’ Beans clickable overlay ad appears a few seconds into Food Network video content on YouTube and disappears after approximately 5 seconds.  If the ad is clicked, the Bush’s creative video spot will load and run while pausing the You Tube content.  Companion ad on right remains during entire video content, whether the overlay ad is clicked or not.

3. In-banner

• Video built within Rich Media banners.
• Usually user-initiated, but can be auto play (audio is mostly user-initiated).

Empower Example: Uniball Pens Rich Media ads allowed users to experience the benefits of check washing (including video) all from within the ad unit.

Original Banner

Banner Expanded Upon Interaction or Roll-Over

Each form has its own unique characteristics and carries its own pros and cons. In-stream: linear (Red Robin Example) makes up the most widely available online video inventory, however, repurposing on-air TV commercials is not the most effective way to use this form.  We recommend short-form, original video content if possible for these placements.    

We believe the relatively new non-linear overlays (our Bush’s example) will evolve over time to be the most commonly utilized video ad unit of the future. However, until these become more mainstream and widely available to purchase, we recommend utilizing the linear video solution (our Red Robin example) in efforts to take advantage of the online video audience and maximize reach of the plan.  Regardless, online video advertising, no matter what the form, will continue to grow and evolve while offering unique ways to reach an audience beyond the banner.

Will online video replace TV…..not a chance!

Online video has opened up doors to a valuable complementary distribution platform for both TV broadcasters and cable networks. People will continue to watch TV and more of it.  Online video provides another avenue to receive more content and the option for viewers to control when and even what specific segments of full-length programs they want to watch.

Viewing of full-length episode TV shows has seen considerable growth over the last couple of years and is projected to see double-digit growth over the next few years. With the advent of DVRs, consumers’ abilities to time-shift has created a flurry of activity amongst network TV professionals to create and maintain the highest quality online video players within their sites. Empowered consumers and advertisers have helped create engaging opportunities to facilitate solid brand building. 

In Summary

As online video evolves, advertising formats will grow and evolve. It’s important to embrace new changes and determine how best to integrate online video as a part of the overall media mix. If we don’t ride this wave of evolution, it could be easy to find ourselves beneath it. Empower MediaMarketing believes the integration of traditional and non-traditional media will open up doors to new ideas, new ways to meet marketing objectives, and exciting, sometimes unexplored, territories.

By: Tim Glover, Empower MediaMarketing Digital Media Manager