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The Online Video Value Gap

September 23, 2008

vcmike

Heavy founder Dave Carson, one of the best minds I’ve encountered around online video advertising, has a great post laying out what he calls the “value gap” for online video.  The gap is the result of the fact that marketers continue to cling to TV advertising formats, which are pretty antithetical to the usage patter of the web — which, among other things, is the notion that users see what they want when they want. Force-fed 30 second spots don’t work so well in this context.

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  1. September 30, 2008

    Clickable overlay ads linked to an affiliate system. The original example I heard was way back in the 90s, with Friends: everything on the show is for sale. Buy their couch (e.g. Ikea), clothes, accessories. Web wasn’t ready for it then, should be now. Stick it on Hulu, NBC.com, etc. Everywhere.

    CPA advertising is as close to recession-proof as you can get, and a much more accurate & efficient economic model than CPM or CPC. Someone will make a bucketload from this…

  2. April 3, 2009

    I encounter this everyday working at Zadby, an online marketplace that connects top advertisers to top online video producers. Even though these video producers on YouTube or Myspace have established audiences in the 100K-millions range, advertisers stick with what they know, even if Zadby offers them a risk-free low-cost way to reach the online community.

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