Video Essentials

Online Video Ads to Grow in ’12; Here’s What Brands Look For completed a research report on the digital video industry shortly before the recent Streaming Media West conference in Los Angeles, and company co-founder and vice president of product Teg Grenager sat down at a red carpet interview to share some of its findings.

This is a good time to be in the online video advertising space, as nearly all the advertisers surveyed said they were sure they would increase their online video spending this year. In previous years, advertisers were more hesitant to jump in.

“This year there were some very interesting findings. The industry is changing and maturing a little bit,” said Grenager, noting that the market was due for significant growth.

That extra spending has to come from somewhere, and the loser in advertising budgets looks to be display advertising.

“Digital video actually is, in some ways, a replacement for some of what display was trying to achieve. It’s trying to achieve branding on the Web, and digital video’s just much better at that,” Grenager noted.

Advertisers’ goals are also changing this year. In previous years, they looked to online video ads to build awareness. Now they want brand engagement with their ads. Noting that engagement is more a tactic than a goal, Grenager explained that viewers who engage with an ad in some way are more likely to think about that brand and see it favorably.

Creating engaging video ads can be an expensive proposition, requiring a skilled team experienced in building customized experiences. For tighter budgets, Grenager told how Innovid’s iRoll system let brands create interactive ads from existing video content.

Audience targeting remains a hot area for online video advertisers, although Grenager is cautious on the topic. While advertisers want demographic targeting to improve ROI (return on investment), slicing up the online audience often results in too small a pool for major campaigns.

“There are very few companies that have cookie-level data about users which defines audience precisely and has high coverage,” said Grenager.

The solution, he said, may be to do what television already does: create content targeted to specific demographics (as today’s basic cable channels do), in order to lure a large, desirable audience.

For more on online video advertising, including how the VPAID standard can improve the types of customized experiences advertisers can offer, watch the full interview below.

These Streaming Media Red Carpet Interviews are sponsored by Front Porch Digital.


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  1. With the online shopping on the raise for sure that video advertising is one of the best ways to increase branding awareness, but referring to the return of investment, the most effective way are the video product presentations, considering that most consumers are more confident to purchase things that they see,especially for new released products.The biggest problem that occurs is having the audience easily digest those ads and be convinced about the product.Video ads used for products advertisements must be short, precise and entertaining, due to the fact that people get bored quite fast.Let’s take a simple example for instance. A Sofa Bed.
    Basically is a very simple thing to make a short video where potential consumers are able to see the color and shape,however, the right way to present even a simple product such as a sofa bed that everyone knows what it is, would be a short ad showing the size (height and length)and features(for example how can you make it as a bed) as well as presenting different colors available.This way consumers could get all informations necessary in the shortest time possible.
    Another very important factor in a video product presentation is the sales speech.Very many video ads presented on TV or on the online world are too much oriented towards the sales factor( and in many cases do not show any price).For sure that all those presentations have sales goals, but let’s remember that every day consumers are bombarded with lots of sales offers for every product we can imagine through all kinds of advertising methods, from direct mailing to TV, Radio or online ads and too much of “buy now”, “only for a limited time”, or ” call now to find out more”, could simply make the customers get away from that specific product.So, rather than making a video ad with a sales speech in mind, better present the specific product, showing the advantages and benefits that this product could bring to the potential customer, and remember to never denigrate your competition.

    Posted by video ads | January 7, 2012, 10:31 am
  2. Indeed, Web video ads added to your website, product or service can really help drive more traffic to your website, make people buy your product or use your service that is why it is really advisable that you would know how to make your own web video ads.

    Posted by andrei | February 15, 2012, 6:31 am
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