Methods to Advertising for Online Video
Since the start of the online video craze nearly 5 or 6 years ago brands, networks, buyers and advertisers have been looking for the proper ways to place ads on videos. Pre-roll, post-roll, mid-roll, banners, product placement, branded integration are all going on currently and working in some areas and not working in others. Figuring out ways to monetize video content online will continue to change and be at the top of some people's minds as half of internet users are watching online videos at least once a week.
There obviously isn't one answer or a simple solution to figuring out how to monetize video content online. Branded entertainment and brand integration within the content is a method that tends to really have a higher level of engagement with the viewers. We've created branded entertainment content for our clients and really enjoy doing this. The main point is to not try and trick your audience - it's best to be upfront about the sponsorships and really find ways to incorporate the brand within the content. Being totally on the same page with the brand is also really important - this gives the content creators understanding about where the line is drawn, what's acceptable and what really fits in line for the goals of the brand.
Direct to consumer transactions between the content creator (either the production company, brand or advertiser) and the viewer of the video. This could be producing a video that ultimately sells a product or by selling interactive video services. JibJab has confirmed that they did a million transactions the last 12 months through personalization of videos and pictures. This is a very interesting (and unique) model as JibJab used to depend upon advertising and now does direct-to-consumer sales to equal their revenue. In addition, they do brand integration from time to time (the Elf Yourself campaign that rolls out each year sponsored by Office Max) in which they combine some really fun interactive elements to engage their users and sponsoring brand together.
Micropayments seem to also be mentioned regarding video content online and for mobile - however, no model has yet been defined or seemed to work. This revenue model will certainly continue to become a bigger revenue generator among mobile applications that have already begun doing this - and video absolutely stands to have successes in this area as well.
Interactive ads is another method that works in specific areas of online video viewing. Instead of a standard pre-roll, some advertisers are creating ads that times the viewers (for 30 seconds) and lets them interact through a game or web application. For instance there was a car company that instead of having a pre-roll video, they created a simple interactive ad that let the viewers design their own car (of course the car was manufactured by the company paying for the ad). It was very unique and actually kind of fun - i ended up learning more about that brand and actually cared/found it more interesting about what they were trying to sell me.
As a production company it's exciting to see all of these business models unfold and take effect in specific areas of the web. No doubt many more will come in the years ahead. Post comments about other methods that you know of for online video advertising.