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February 14, 2006

Video, Advertising, and Online

Heather Green

I chatted with Tracey Scheppach, an exec at the ad agency Starcom who's in charge of figuring out how to advertise on all this new digital video online, on cell phones, on cable video on demand.

So how fast is this digital video world moving? Here's one example. Scheppach was surprised that, when Apple first announced video downloads on iTunes, the only option for making money on downloads was by selling.

I was kind of perplexed by this too. And so was Fred Wilson! Why not offer the option of either buying an ad free copy of Lost for $1.99 or a free copy that's chock full of ads?

Her take? That the deal to do downloads was done so quickly that they couldn't put in place a way to do ads. But now, companies, including Disney are starting to offer ad-supported, free downloads.

10:00 AM

digital media

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If you watch the video about which I posted earlier today ( http://blog.rebang.com/?p=670 ), and which shows up on a variety video hosting sites, you'll notice what looks like the simplest of ads at the beginning... possibly grafted on to the original footage without permission. This has me wondering how many ad parasites will try to leverage viral content.

I almost mentioned it, but there were other things on my mind. So I'm glad to see someone else pointing out the lack of advertising options for video content.

The other thing on my mind is: where is the advertising model for uploaded and *shared* videos? Is it out there?

Posted by: csven at February 14, 2006 07:29 PM

Well, television shows were never free on there, but for some time, you could watch music videos on iTunes for zero cost - though I don't believe they were downloadable. I'm wondering if they used that as some sort of model to figure out what kind of volume they'd do.

Also, when ads are sold for television, they're probably not "contracted" for use online (a similar situation is with online radio, which sometimes has empty slots in local commercial spots), so it would be extra legwork for the salespeople. Plus, the folks who buy online might be the same folks who fast forward through ads on their DVRs.

Posted by: Tom Biro at February 14, 2006 11:59 PM

Hi Tom,

If I remember right, what changed with the online music videos was that the music companies started charging for those. So the online sites had to pony up and subsidize the cost or ask people to pay.

Posted by: Heather Green at February 15, 2006 11:34 AM

see also

http://www.hztv.com.cn

Posted by: http://www.hztv.com.cn at February 16, 2006 08:44 AM


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