'Next stage' of online advertising offers opportunities for video, TV

December 14, 2013 - 10:16am
'Next stage' of online video advertising offers opportunities for multichannel distribution.

As online video advertising matures, it's critical that operators and advertisers continue to invest in platforms and architecture that optimize video transport and content delivery. Many of the kinks that Web-based ads initially encountered have been worked out, and on the whole, video advertising on the Internet has settled into some patterns that closely emulate those of traditional linear TV. As operators begin to have a better idea of the digital environments best suited to engaging viewers in ad content, the systems supporting their delivery will continue to evolve.

In effect, wrote Forrester analyst Luca Paderni, online video advertising is entering its "next stage."

"[TV advertising] has risen to become a major component of the marketing plans for many brands and [our] long term perspective has allowed us to identify both the good practices, and the bad habits that have taken root in the practice," he wrote.

One of the most significant shifts is the growing focus on interactivity, Paderni stated. With in-stream video ads and interactive content displays, advertisers are able to communicate in real time with viewers to curate a more relevant, engaging and satisfying ad experience. This interactivity is one way that video advertising builds on the general delivery formats offered in the traditional TV landscape.

How online ad insertion learns from TV video transport
Linear TV advertising has guided video advertising in an important way - advertisers have realized the benefits of offering clean and uncluttered viewing experiences. They focus on delivering ads that do not have to compete with other media, such as banners and pop-ups, which can be potentially distracting and erode the ad's effectiveness. This mutually beneficial format of displaying ads is one with which TV viewers are quite familiar.

How TV ads can learn from digital content
The interactivity that is currently driving innovation in online video can also help TV advertisers supercharge their content delivery platforms. Strategies such as geo-targeting and real-time feedback are used on a small level or indirectly by TV advertisers, but their potential to improve the viewer experience - as well as advertiser revenue - is significant, according to Econsultancy. Additionally, multichannel distribution offers opportunities for advertisers to leverage dynamic content campaigns that interact with users in methods best suited to the specific device.

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