Online video advertising

Jupiter Research projects that streaming media advertising spending will increase 79%, from $140 million in 2004 to $251 million in 2005. To put these numbers in context: total online advertising for 2004 was an estimated $9.3 billion or 4.6% of the $257 billion total advertising market. (Source: JupiterResearch Internet Advertising Model, July 2005 (US only))

'While online video advertising is still a small segment,' Interactive Advertising Bureau (IAB) president Greg Stuart says, 'we recognise it as a big opportunity since it gives marketers an easy way to transition their television advertising to online.' (Source: IAB).

The potential advantage of online video is cited as increased brand awareness, strong direct response and branding results and, in some cases, better results than television. Whilst at this time online video is primarily being used in B2C markets, the impact is more far reaching as it is increasing online brand equity and the value of this form of communication to organisations further upstream in the supply chain.

For successful use of online video it is suggested organisations should focus on customer needs and translate and integrate offline video assets into the online experience, build more effective customer facing communication strategies and ensure campaign integrity and adaptation to develop an online 'lean-in' audience, yielding decreased costs and improved response. Knowledge of end-user preferences should be used to allow users to mute or close video windows to reduce annoyance and related negative branding effects. Online video content has several potential revenue streams; premium content, users pay for content (either on a pay-per-view basis or as a subscription), advertising revenue and sponsorships. This tailored form of advertising can be implemented in multiple ways to provide online video content for specific users.

Source: Adapted from JupiterResearch's European Marketing & Advertising April 2005 report 'Online Video Advertising: Tune Content and Placements to Web Constraints'.

Online communications are not just being used at the initiation and processing stages of purchasing. Another valuable contribution being made by online communications in the later stages of the buying process is regarding product evaluation and feedback. The Internet offers opportunities for businesses to improve the quality of customer service and at the same time reduce costs. Quality of service can be improved by providing buyers with access to the right answer to their queries in real-time. Using customer information and diagnostic tools Dell Computers (www.dell.com) analyses the buyer query, diagnoses the problem and then instantly recommends possible solutions. Through providing web-based support or buyer-driven question and answer sessions Cisco has to employ fewer staff to provide the required level of after-sales support (see Mini Case Study 11.3).

Mini Case Study 11.3

Creating The Prefect YouTube Marketing Video

Creating The Prefect YouTube Marketing Video

Create the Perfect You Tube Marketing Video-5 Tips To Get it Right. You can use You Tube to market your business, product, or services. However, you need a good video in order to draw traffic and make people want to visit your website after they have finished watching.

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