I moderated a panel today at NewTeeVee Live, which was one of the best conferences that I’ve attended this year. Kudos to Om and Liz for putting together a great show.
The four panelists were all CEOs of video ad networks. Jayant Kadambi of YuMe, Tod Sacerdoti of Brightroll, Matt Sanchez of VideoEgg and Matt Wasserlauf of Broadband Enterprises did a great job of discussing some of the challenges and opportunities in the industry.
Here are some takeaways from the discussion:
Online video is a brand building medium, bought on a CPM basis.
Ad buys today are coming from three buckets; TV budgets (the big opportunity, but further away), online budgets and experimental budgets. Video content coming from TV and other traditional video producers is most likely to win buys from TV budgets. Native online video content still coming from experimental budgets.
To get to a scalable online video ad business, the key barriers are (i) standardization of ad units, (ii) standardization of ad serving infrastructure and (iii) standardization of measurement/metrics.
There is tension between highly effective preroll ads and user friendly overlay ads (with a user initiated play), but these are the two most common ad units and most likely to become a standard. In-banner video is also popular.
Big Media companies prefer point solutions for online video so that they can sell and control their own inventory; smaller online content owners want a packaged solution that delivers all elements of the value chain (ad sales, ad targeting, ad inventory management, ad serving, ad measurement) from a single provider. There is increasing pressure to create standards in ad serving from the large media companies so that multiple sales forces can sell ads without having to implement multiple serving solutions.
Advertisers are buying content adjacencies today as a proxy to demographic targeting, but they would prefer to buy demos directly where they can
The four panelists really engaged; it was a pleasure to listen in to their conversation. You can read the transcript of the panel here.