Video Essentials

The Two Biggest Hurdles for Online Video Advertising

With so much premium content online, why are broadcasters having trouble attracting advertisers?

Online video advertising has a long way to go before it’s seen as an equal to television, and there are two main reasons for that, says Keith Camoosa, managing director for research and analytics at forecast and insight firm Magna Global. Responding to a question about online video advertising hurdles during the recent Streaming Media West conference, he said the biggest were measurement and performance.

AdapTVWordCloud“There’s two hurdles. The first is measurement. There’s not great measurement for digital streaming media across the board. So, for example, tablets — there is no measurement. The first block is having reliable, repeatable measurement that allows us to plan against an audience across device and the second is performance,” Camoosa said. “So the first is measurement meaning can we target the right people, put ads in front of them the right number of times. The second piece is performance meaning do the ads work there on a relative basis, do they work as well or better that traditional TV, and, if so, then we can shift dollars.”

Online viewers are often inundated with ads — the same ad repeated many times during one program. That’s a bad situation for both the advertiser and the viewer.

“There’s an infinite amount of inventory available — inventory is a page load — but there’s a finite number of people behind that inventory. Often, because of where the industry is at, ad campaigns will build excessive frequency meaning we’re reaching a small number of people a whole lot of times. This is a major problem right now with streaming media,” Camoosa said. “The solution is to frequency cap, but the notion of frequency capping across platform, across device, is pretty complicated for a whole number of reasons.”

Too many repeated ads can actually turn a buyer against a product, noted panelist Eric Mathewson, founder and CEO of WideOrbit.

Scroll down to watch the full panel discussion.


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