The PlayOn Blog

In our effort to bring all the compelling Internet video content to your TV in a cost-effective manner, of course we will be bringing advertising too. Advertising is (naturally) a big part of our business model. But -- how does video advertising really work? How effective is it? In our model, the viewing experience is very similar to TV advertising (like the video that plays in the upper corner while you are searching through on-demand listings from your cable provider). But it is bought, sold, managed, and distributed like on-line advertising. So which metrics apply? The online click-based metrics or the TV "audience" (aka number of viewers) metrics? We're all trying to figure that out. Tameka Lee just published an interesting article based on a recent study conducted by Exponential Interactive <span class="articleHeadline"><a href="http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&amp;... Consistent Performance Metrics Emerging For Online Video</a> which found that the majority of video buyers are still using "click-through" metrics (logically, since these are the same folks who buy other forms of online advertising), but those who did use "view-through" metrics were much more satisfied with their effectiveness. It seems to me that which metrics work best depends on three factors: (1) the </span><span class="articleHeadline">goal of the advertiser, (2) the viewing context/audience targeted and (3) the ad itself. If an advertiser's goal is to drive traffic to a website (ultimately for purchase), then an interactive click-driven ad targeting folks sitting at their PCs makes sense. If the advertiser's goal, however, is to build brand awareness, or introduce a new product to targeted consumers (who may be watching a certain type of video on their PC or TV), then a pre-roll or post-roll-type ad with view-through metrics may make much more sense. From a context-perspective, interactive video ads can only be effective where the user is watching the ad on their PC. But, with view-through-associated goals, the video consumption could be TV or PC-based. In the MediaMall environment, when users are watching through their TV and the navigation and interaction is remote-control-based, it is likely that ads with a view-through goal will be much more effective. And -- in the end, the view-through metrics are still more granular than on broadcast TV. So - I am glad that the survey respondents had much higher satisfaction with the view-through metrics. I am sure the metrics will get better and better as video advertising matures.</span>