[Note: This guest post was originally featured in the ACA (Association of Canadian Advertisers) newsletter “Driving Marketing Success”. Reprinted by permission.]
Talk with anyone about what’s important for advertisers on the net, and after the obligatory deference to social media the conversation quickly turns to something more familiar, something marketers feel comfortable with: tried-and-true video.
When this recession hit last year, we all wondered what media would be hit the hardest. TV? Newspapers? What we didn’t wonder is what would be hit the least. That surely would be the Internet. Online spending for sure would be spared the axe, and in fact, if any medium could show growth during a recession it most likely would be online.
It didn’t happen, though. eMarketer reported recently that total online spending in the U.S. (Canadian figures were not available) will be down 2.9% for 2009. But have a look specifically at online video. It is the bright spot with a projected growth rate for 2009 of – wait for it – 43%! In a recessionary year. And here’s the kicker: eMarketer projects that online video will have roughly 40% growth rates each year for the next five years.
Add to this a New York Times report that online news is attracting $50 per thousand viewers for video pre-rolls, and a recent Advertising Age report that consumer packaged goods have embraced online video, and you have to conclude that something big is happening here.
There seems to be a certain pent-up demand for video on the net, and all indications are that it is going to manifest big next year. Which begs a pretty important question, and one that marketers always get around to asking when substantial investments begin to accumulate: how do I know if I am getting what I paid for?
ACA members attending our recent New Media Committee meeting got a glimpse into this future, listening to a presentation by Anthony Rushton, Director of Telemetry plc of London, UK, on online video verification. Telemetry is a new entrant into the online infrastructure which provides a service for clients with a very important difference: independent, secure verification that ads were run.
Not to pick on Google, but don’t they actually own DoubleClick, the ad server they use? Where’s the incentive for them to apply rigorous due diligence? How do advertisers know they are getting exactly what they have ordered and paid for? By taking their word? That might have been okay for an industry in its infancy, but it’s not okay for a mature business.
Telemetry showed us screen captures from publishers that were running five small video ads on the same page, buried 10 pages down in the site, in order to fulfill their contract count. Did it ever come up in the sales negotiations that you would be sharing the screen with four other video advertisers at the same time!? I didn’t think so.
It’s been a long, long time since newspapers were accused of printing extra copies in order to get larger circulation figures to boost the price they could charge advertisers – and then dumping many of those copies in the alley.
But it looks like circulation dumping is alive and well and living in some of the digital alleyways of the Internet. Telemetry is careful to point out that not everyone is doing this, but it is happening out there. Campaign discrepancies can run as high as 30%, they point out.
That is just plain unacceptable.
– Bob Reaume
– Vice President, Policy & Research
Get access to Telemetry and other leading-edge thinkers in the field through the ACA’s new media committee.
Bob Reaume’s 35-year career in advertising began in media at Ronalds-Reynolds Advertising in Toronto. Bob oversees the research required to support ACA’s many projects, especially those related to media. He also plays a pivotal role in supporting and developing various initiatives undertaken by ACA’s New Media, Broadcast and Print & Out-of-Home committees.