Mobile video is increasing in popularity, but while some
consumers are happy to pay for premium content, many are unwilling to
shell out cash for the privilege of watching video on the move. This
means advertising needs to be present to cover the costs of presenting
mobile video.
In the same way that online video sites are struggling to find
the perfect solutions for video advertising with YouTube being the most
obvious example, mobile video producers need to find solutions as well.
If they get it right, the possibilities could be boundless.
Brands Eager To Exploit Mobile Video
Patrick Maurer is no techie. “I can barely
work my toaster”, says the lanky 29 year old sales rep with the
self-described “tennis player” hairstyle. But Patrick may represent the
most promising aspect of mobile marketing- mobile video advertising.
While checking his mobile Yahoo account, Patrick watched a video from
Jaguar that eventually led to a dealer test-drive. “I hadn’t really
looked at the Jag before that”, he said.
The opportunity for brands to
tell their story with sight, sound and motion has agencies and
advertisers eager to experiment with mobile video advertising. This
nascent sector probably has the necessary technology to grow. What is
lacking now are clearly defined business processes.
Mobiles With Video
Walk into any Sprint, Verizon or AT&T store and most
of the
phones will have video capability. According to NPD, 60% of multimedia
handsets sold to US consumers in Q1 have video functionality.
Although
some consumers are watching paid subscription services like MediaFlo,
MobiTV, Sprint TV and VCast, ComScore m:metrics notes that 3 times as
many- over 15 million people- watched video clips forwarded by friends
and family. The proportion is similar in Europe.
Consumers
are definitely interested in premium video content; they just don’t
want to pay for it. The challenge is to identify what type of ad unit
can be used to subsidize premium content. In July, Dynamic Logic
announced the results of a study that seems to favor the the
pre-roll.
Pre-roll In Exchange For Freebie
Nearly nine in ten (88%) of mobile phone users on 02 Active,
particularly males 18-24, said they are happy to receive pre-roll
mobile ads in return for high quality, free content. 59% said the
mobile ads made them more interested in the advertised brand and 62%
said it gave a good impression of the brands being advertised.
Not everyone agrees. John Burbank, Chief Marketing Officer at
Nielsen and an alumnus of Procter & Gamble and AT&T,
commented
at the IAB Mobile Leadership Forum,
“I don’t think anyone is about to buy pre-roll on mobile video. It is
still too immature”. Elgin Kim, Head of Sales- West at Nokia
Interactive Advertising notes that “Unless it is a highly emotional
category like auto or film, pre-rolls don’t work”.
The carriers
themselves have other priorities. Jordan Berman, Executive Director for
Media Innovation & Mobile Advertising at AT&T, notes
“our focus
is very much on launching our MEdia Net banner ad business in 4Q and so
there isn’t much activity in the video area”.
MobiTV
MobiTV,
which
is now among the Top 10 MSO’s in the country, favors the creation of
branded channels and interactive response components. For example,
unique branded channels for Navy & Toyota include click to WAP
call-to-action while Schwab encourages click to SMS. Jack Hallahan,
Vice President, Advertising & Brand Partnerships at MobiTV,
believes “the handset is an extraordinary tool for direct response”.
Hoping to combine aspects of branding and direct response is a
variety of technology enablers. MyWaves,
for example, claims to have 5.5 million unique monthly visitors to its
free, ad-supported mobile video service for premium content like MTV
and CBS. In addition, they launched an ad platform in Q1. According to
CEO Rajeev Raman, “advertising is moving towards the 15 second spot,
whether on TV, online or mobile. We see zero drop-off when the length
of the unit is extended from 10 to 15 seconds”. Versaly Entertainment
is a smaller free, premium video network that is available on Sprint.
Transpera
Santa Monica based Transpera
enables content owners like Associated Press (AP) and CBS to stitch
targeted pre-roll and overlay ads on top of their mobile video content.
Viewers might see multiple ad impressions, each 10 seconds or less,
during the average 7.5 minute session on AP’s Mobile News
Network.
Jeffrey Litvack, Global Director, New Media Markets wants “to
deliver
personalized, localized ads to the end-user. Frank Barbieri, CEO of
Transpera, is providing publishers with “a similar experience to what
they are used to online. That means impression-based CPM’s, click to
call and other direct response media, just like online media”.
Nexage
Nexage
builds
click to video capabilities with interactive components into mobile
websites for ad agencies. Dev Gandhi, CEO of Nexage, believes it is
about “more than the video. Brands can incorporate aspects like ratings
and comments for interactive feedback. It has to be a more
comprehensive solution than just video. Having video with pictures,
chat, groups, profile and interactivity / community aspects is exciting
to brands”.
These technology enablers will have to align with strong
consumer
brands that share their commitment to mobile video. One such brand is
ESPN. Oke Okaro, Vice President Mobile & International at ESPN
is
“very bullish on mobile video advertising. We see the mobile platform
as a natural extension of television.
Mobile Different From The Web
There are so many creative things
we can do but the problem today is that too many people are approaching
ad-sales in mobile as if it is the same thing as the web. It isn’t”.
The sector will remain nascent until the emergence of larger video
audiences that stimulate more interest from ad agencies who finally
request more RFP’s.
What is certain is the interest from consumers, brands and agencies.
Land Rover, Ford, Paramount, Sony, Dell- a variety of respected brands
that have implemented targeted mobile video ad campaigns.
Ad Infuse,
the mobile advertising network, hosted senior executives from agencies
and brands in LA and New York and found that mobile video was in the
top portion of each city’s key interest areas. While the risk in a
nascent sector is significant, the innovators in mobile video
advertising can help define an entirely new medium.
[Content in whole or part adapted from IPTVe and is licensed under Creative Commons, no addition derivative works may be copied from this article without prior permission from IPTVe and Web TV Wire]
