Video Pre-roll – New Sheriff in Town!

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MCKAY ADVERTISING + ACTIVATION

Video Pre-roll – New Sheriff in Town!

The data is in! Video –preroll is going to be a major disruptive factor to traditional media. The impact it will have on newspaper, TV, cable, and others will be significant. Monies will begin to chase the consumer that wants their news and entertainment on demand and will view a brands’s message for that convenience. In addition, this consumer group is growing significantly. Brand dollars will now be reacting to this shift, because marketers have another choice for video commercial distribution. MA+A’s “bet” on the most affected media will be cable and broadcast. The major problem for broadcast and cable, compared to the local newspapers, who were able to bridge their content to on line, is the local cable and broadcast folks have very little special content. There are other digital platforms that are better distribution models for network, syndicated, or news content. Currently their web sites do not offer enough distribution to develop any scale with no help of dynamic content on the way. In addition, most of their on line video sales can be purchased through RTB (Real Time Bidding) which can allow advertisers to distribute their video message at very efficient CPMs.Below are the March 2013 numbers from Comscore.

comScore Video Metrix service showing that more than 180 million U.S. Internet users watched 36.6 billion online content videos in May. Video ads posted another month of record-breaking gains, surpassing the 10-billion mark for the first time on record.

There are some other factors at play, other than consumer behavior. The other factors are the benefits of on line video marketing.

-Better Targeting: We can begin to use data to identify our target. Instead of buying a female skewed TV program with the assumption that viewers are soccer moms, we can now buy video preroll, merge it with data and almost exclusively reach Mom’s with infants HHI 50k +.

-Geographic Targeting: Like cable, VP will allow country targeting but in addition as scale allows zip code targeting. The ability to hit certain areas of town in specific zips or certain zips for national campaigns will make for a nice offering.

-Instantaneous engagement: After viewing VP your one click away from engaging the company site or social

-Ads Viewed: Can purchase in a way that the ads must be viewed or in CPC manner that requires engagement

The election of 2012 will forever be the high water mark for TV and cable sales revenues. How far it will slip will be very interesting to observe. We believe it will be huge!

Peace!

Top U.S. Online Video Content Properties Ranked by Unique Video Viewers
May 2012
Total U.S. – Home and Work Locations
Content Videos Only (Ad Videos Not Included)
Source: comScore Video Metrix
PropertyTotal Unique Viewers (000)Videos (000)*Minutes per Viewer
Total Internet : Total Audience180,50336,556,7921,315.3
Google Sites151,65617,618,391462.7
Yahoo! Sites57,762845,40177.7
VEVO48,258653,65657.5
Microsoft Sites44,356490,94242.7
Facebook.com44,310246,97224.0
AOL, Inc.39,627569,26860.5
Viacom Digital39,199433,53053.8
News Distribution Network, Inc.34,246286,80186.8
Amazon Sites27,15896,73321.9
Hulu25,689887,812253.7