I've put up a post on my Lucid Media blog that may be of interest
here.  It is the rational for not placing ads within videos:

http://tinyurl.com/37s2ma
or
http://lucidmedia.cirne.com/index.php/2007/03/02/the-case-against-advertising-in-net-video/

Blog text follows:
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Recently methods of advertising in video have become active in
development and implementation. Originally when I heard the rational
for Ads in net videos from Revver, I thought it worthwhile. Provide a
method for people making video on the net to gain revenue from their
work. This would support net videomakers continuing their work. There
had been entries on the yahoo videoblogging group and on blogs for Ads
targeted to the audience and content of the video. Similar to Google
showing Ads that try to relate to keyword searches; an Ad for Harley
motorcycles could appear on a videoblog entry about a weekend
motorcycle hog excursion with friends.

Unfortunately, specifying include an Ad in my video on Revver, blip.tv
and others means you can have a powerful, emotive video on the
relationship to one's father followed by a upbeat commercial for Juicy
Fruit gum. Or a irreverent video of doing a prank on someone followed
by a commercial for the Heart Association. Now this problem probably
just relates to the technicality of specifying categories for the Ad's
relationships to video content and the amount of different Ads
available. With time the correlation of Ads to video content and the
viewership should have stronger matching.

The question is why have Ads in videos on distributed networks.
Traditionally, on a television set broadcast a advertisement had to
exist within the video stream. No other location was provided for
placement. However on the internet an Ad does not need to be in the
video. It can be anywhere around the video on the web page. Either
top, left, right, bottom or lower down the page. Now video on the net
does not mean just a web page. It can be an iPod, mobile phone, Tivo,
or even projected in a theatre film festival. All of these non-website
screens can and probably will develop methods of displaying more than
just a video stream. A future iPod, mobile phone, digital TV and
theatre projector will be able to show more than just the video. Like
the Opera super- and sub-titles projected separately from the
performance, these screens will probably eventually have dynamic
separate information areas where Ads can appear. Further with the
usage of different screen ratios than 4x3 (16x9, etc.), space can be
made available around the video to place Ads. This puts advertising in
the video stream, but does not directly break up the video continuity.

Google proved the failure of putting ads directly in searches. Flash
Ads that pop-up and dance up over the content of web-pages send people
away from sites. And Ads that interrupt the video, even at the end,
will be found to be ineffective. They will either drive people away
from watching the videos if at the start or middle or tend to not be
watched if at the end. Ads placed around the video will work since
people can choose to pay attention to the periphery of a video if the
ad relates to their interest or ignore that area.
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  -- Enric
  -======-
  http://www.cirne.com


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