TV Execs Minimize Video Threat, but…

Big numbers have been released by comScore about the growing number of online videos served by both Facebook and YouTube. Between the two sites, they delivered more than 24 billion views in August alone. To get down to the specifics. comScore’s executive chairman said that Facebook had delivered a billion, yes that’s billion, more video views than YouTube, and Facebook itself announced in September that it was delivering a billion views a day. Welcome to Q4 and the potential for massive advertising spend.

What do those big numbers mean for the advertising industry? Well, if you listen to the networks, not much.

In a June 2014 report, RBC Capital Markets analyst David Bank stated “the online video market poses little threat to the traditional network TV ecosystem.”  To highlight the drastic contrast between the two markets, Banks asserted the advertising value of an entire week of YouTube viewership is equivalent to that of a single, first-run episode of CBS sitcom “The Big Bang Theory.”

“Is ‘The Big Bang Theory’ a big show? Yes,” said Bank. “Does its scale threaten the fabric of the rest of the TV advertising ecosystem? We do not think so.”

A “Big Bang” viewer sits through around eight minutes of advertising, while a YouTube viewer is exposed to far shorter, less frequent pre-roll ads, some of which can be skipped. Moreover, Bank noted, only around 16 percent of ad minutes in online video run against premium content, and roughly half of that inventory is available on properties owned by major media companies like CBS or ABC.

So more and longer ads make TV superior, even when run against mediocre content? But how engaged is the TV viewer vs. the video viewer?  Video viewers may be exposed to fewer ads, but they can’t fast forward through as much advertising as TV viewers can since the advent of time-shifted viewing. Morevoer, Facebook serves autoplay video ads, although some users dislike that because they almost HAVE to view them. Does that produce positive engagement with a brand? We’d say it depends on the brand. The jury’s still out on the overall effect.

But here are better ways to serve video advertising than just pre-roll on two sites. For one thing, we believe video ads can be cut loose from pre-roll and served on non-video sites where they can run in the middle of content a visitor is already reading. Our inArticle format does not run auto-play sound, so we’re  courteous to a reading visitor. But we don’t let the visitor forget either, because we leave a 1×1 copy of the ad at the bottom of the page, so if a visitor wants to read all the way through the content and return to the ad, she can.

We’ve also got a Tier 1 network at your disposal, so if you want to buy video ads and you can’t find enough pre-roll to scale your campaign, our ZINC high impact formats could be perfect for you.