Moderator: John Durham, CatalystSF
Panelists:
John Vincent, Eyewonder
Sean Finnegan, Starcom Mediavest
Randy Kilgore, Tremor Media
Tod Sacerdoti, Brightroll
Mike Henry, Veoh
Kilgore: Pre-roll has gone full cycle. It got its bad rap, and now its come back and is very popular. It got a bad reputation because it was being placed in front of content that people weren’t sure had any value. Now that it is associated with better content, the value proposition is clear. A :15 second pre-roll in front of two minutes of content is something people are very comfortable with. Now we’re focusing on tying it all together on the back-end with advanced reporting.
John Vincent, Eyewonder: People thing about pre-roll as repurposed TV, but the perception should be about the placement. Its an increadibly powerful spot, especially ahead of premium content. Pre-roll is the most valuable location. Understand the opportunity and then execute against it. Don’t think about it as repurposed TV spots.
Mike Henry, Veoh: I don’t know that the location makes it more valuable. Part of our own research has shown that the more time people spend with a video, the more engaged they become. They are more likely to rate it, to send it to a friend.
Tod Sacerdoti, Brightroll: We don’t see any ad unit as dominant as pre-roll. The two things we focus on a getting quality content at scale, and can we get pricing at rates that people are comfortable scaling their budgets. I’m bullish on pre-roll
Q: When can we get sustainable standards?
Sean: Standard metrics is still key. The ability to bridge the gap with the people who are buying TV is one of the ways to allow the ad dollars and inventory to flow. You also need to preserve the unique elements of online video, like the ability to track purchase intent and filtering down the funnel. But we need to align these universes and understand that it is the same user across multiple platforms. In the digital industry, we tend to stay down in the weeds a little too much.
John Vincent: Until recently, it has been technically impossible for publishers to have the same tracking and interaction metrics. So we’ve rolled out a universal metric that Adobe and Microsoft are adopting.
Kilgore: I don’t understand why we even need to have this conversation. Before digital, we were still aggregating audiences across platforms and figuring out how they work together. Maybe its because in 2001 we needed to show how different and special we were.
Sean: My point is that we just need to be able to find a way to do more of it. But there are some fundamental hurdles.
Tod: The reason I think measurement is so important is that ads have ways of finding themselves in places that advertisers don’t want them to be. Campaigns tend to be optimized for a number of different metrics, but we need to be able to give advertisers the trust that the placements are way they should be.
Mike: High CPMs are going to need to be justified, especially in the short run. But if you wan to compete with the scale of TV, you wont be able to charge those high CPMs that will finance and support the industry. I’d expect that the CPMs will go through the roof because we can narrowcast our message to the audience that is relevant and measure its impact.
John: You can measure what you get on TV, and then all the interactivity on top of it.
Is the money following the video? Why aren’t we getting $75-$100 CPMs for targeted campaigns?
Tod: We need to show the efficacy. And the interoperability isn’t there yet.
Mike: I’m skeptical that the CPMs will be higher than TV. You could argue that TV is overpriced right now. The dollars will flow when the pricing is more competitive. But there’s a tendency to hold on to those higher CPMs.
Kilgore: I think the issue is slightly different. The money comes from the marketer to the agency for planning. And then the portions get sent to digital or other places, but that hasn’t really changed. There’s a reason that the money goes to TV first. They see the broadcaster’s digital extension programs, but they haven’t been exposed to the real online video market. Where the pricing will fall will be up to us to show the value of our audiences, our targeting, and our benefits.
Audience Q: We’re hearing that DRM is part of the problem shifting TV ads over to online.
Randy: We hear that about 10-15% of the time. I’m surprised at this point that people aren’t securing those rights.
Audience Q: Are the networks doing a better job building an ecosystem around their video content than the agencies are on a campaign basis?
Sean: I think the networks are odin ga fantastic job. My agency is there in lock-step with them and continue to work with them on multiple levels to find more opportunities. We’re big fans of pre-roll and buy it a lot, but we’re also interested in further, deeper innovation.
Audience Q: A pet peeve of mine is seeing auto play video on a home page. Are those ‘real’ streams or not? Would you buy them?
Sean: No. If we knew that was happening, we wouldn’t by that.
Mike: If we could prove that those units were less effective, it would be easier to weed them out of the mix.
What are you doing in your organizations to help people move away from the UGC perception of video?
Mike: What we’re trying to understand is the relative engagement and effectiveness of the different types of content. What is different about web content – not UGC – that is different from Lost of Heros online.
John Vincent: Risk vs Reward. You have marketers who are looking for an advantage. You look at costs and you look at downside risk. If the risk is greater than the incremental upside benefit, you just eliminate that from the buy.
What frustrates you most about our industry?
John V: I wouldn’t say frustrated, but I’m fearful about 2009 and losing all the progress we made in 2008. How do we learn from what we did in 08 and do more in ’09. Marketers can either cut costs.
Randy Kilgore: We’ve come so far, and we’re talking about a lot of the same things, but when you balance that against all of the great things going on, its hard to get frustrated at all. I’m more concerned about the things going on with Congress that could derail our whole industry.
Sean: I’m a bit more positive. In this tough economic time, I think we’re going to grow up as a business and see how we can advance while the pressure is on.
Mike: I’m also more positive and excited about what will happen in the next year.
What is an interesting website that you go to?
John Durham: SlideShare
Mike: Veoh obviously
Tod: Search for “retargeting” and see how often they find you over the next week.
Sean: There’s a new site called Facebook
Randy: SeatGuru.com.
John Durham: Hopstop.com