Three Reasons to Invest in Online Video: Why Streaming Video Must Be Included in your Marketing Plan

Userplane's Michael Jones explains why online videoexperience online, and this powerful medium now
must be included in your marketing mix.Thanks toreaches everyone with engaging and interesting
online video ads, guys with bad hygiene and patheticcontent," Hunter said.The internet makes users part
social skills can try wooing VH1 VJ Rachel Perry-- andof the media experience. They aren't just viewers, as
they even get a well-mannered response. Ah, thethey are on television. They're participants. They're
wonders of the internet.The ad campaign was anmembers of the online community. Advertisers are
innovative partnership between laddie-mag Maxim andtaking advantage of this increased engagement and
Pontiac to hype the carmaker's Solstice Roadster.loyalty. On New Year's Eve, MSN aired 30-second
Users logged onto the magazine's website andvideo ads from the entertainment and automotive
submitted pick-up lines to an image of Perry, actuallyindustry throughout its live web cast from Times
an incarnation of the beautiful celebrity compiled fromSquare. The coverage allowed internet viewers to
hundreds of pre-recorded videos. People with thebecome part of the show-- sending emails that were
best lines registered to win a car. Depending on theincluded in the web cast.Companies are also
attempt, the program culled Perry's retort in real timemainstreaming online video ads because they use
from hundreds of pre-recorded responses. The sitequantitative data to connect consumers to products
was flooded with users. According to Advertisingand services. This is the new "golden metric" to
Age, 16,000 people registered in its first threedetermine ROI, according to Diane Mermigas,
weeks.The titillating Pontiac campaign was thecontributing editor to The Hollywood Reporter. "It is
successor to Burger King's Subservient Chicken, animpossible to counter the logic that paying 28 cents
online craze of its own. The two demonstrate thefor a click on Google by a targeted consumer who
unique potential for online video ads. They lock millionsmight engage in an electronic transaction is not
of users to the sites, create a viral response bypreferred to paying 10 cents per reader for a national
allowing fans to email the links to friends, andmagazine print ad that might not be seen," Mermigas
generate pop culture buzz. And of course, the onlinewrites.Mermigas says traditional media outlets can
video ads paid off in higher chicken sandwich salescash in on the online action by moving consumers and
and registrations.We shouldn't be surprised onlineadvertisers to websites. In the future, look for more
video ads are becoming so popular. The streamingjoint marketing sales between internet video
ads are a natural outgrowth of technologicaladvertising and traditional media outlets. Companies
advances, evolving consumer habits and the perennialwill integrate campaigns, combining online videos with
desire to gain traction with users. They are aTV spots run on cable networks. This naturally
much-needed advance in the maturation of theextends the campaign because video production
internet and will help ensure its future profitability.costs were paid when the content was prepared for
Fortunately, companies are realizing this. The onlinetraditional media.3.) Interactive, engaging and
research aggregator eMarketer projects streaminginformative
video spending will nearly triple to $640 million in theFinding your ads' target audience is only a start, you
next two years, and grow to $1.5 billion byhave to lock them in to be effective, get them to
2010.Three key factors have caused the rise ofengage. TV, radio and print have skinned this cat
online video ads, and will guarantee the medium soarsevery which way for decades, but they're still
in 2006.1.) A tech-savvy culturehandicapped. They're dealing with passive mediums
If the internet were a child, we could say it's leavingand can't snoop while the consumer interacts with
the awkward ugly stage and beginning to blossom.the pitch. The truth is, they don't know who's paying
Let's face it, only a small number of consumersattention or for how long! Meanwhile, customers who
jumped on board with the latest technologies whencheck out the new online video ads by Ross-Simons
they over-promised on the results or didn't work outnot only get a behind-the-scenes peek at the styles
the bugs. At first, technology was holding backof jewelry merchant, their interaction with the ad
advances, which held back the profits. I was like ateaches marketers what works.Ross-Simons just
parent, cringing and wincing at those banners andlaunched its streaming ads on its website. They star
pop-ups. It was like seeing my youngster lurchingsoap opera actress Lauren Koslow of NBC's "Days of
through puberty. Hang in there little buddy, you'reOur Lives," and allow consumers to click on
gonna make it! Now, technology is catching up withhighlighted items to learn more or order the product.
expectations, which entices a broader range ofThe videos engage customers and allow them to
consumers and gives marketers a piece of the action.take action at the moment of interaction. It's more
I'm beaming.The rapid adoption of broadband internetthan an advertisement-- it's a prelude to a
access is the primary driver of online video ads. Andtransaction.Shot on digital video, there is little
it's only going to get better. The U.S. market hurdledcomparison between online advertisements and their
a barrier to internet advertising this year when morepassive cousins. Programmers can blend interactive
than half of online households were using high-speedconcepts with the campaigns, like hidden "Easter
connections. A study by eMarketer estimates theeggs," flash, 3-D and high-resolution images. Many
number will continue to grow, from 42.3 milliononline ads include viral elements like emailing the ad to
households in 2005 to 69.4 million in 2008.With allfriends or allowing users to become part of the online
those high-speed connections out there, comScorecommunity by posting comments on the site.David
Networks found consumers putting them to goodHallerman, senior analyst at eMarketer, said, "More
use. More than 94 million people in the United Statesthan any other advertising format, internet video has
viewed a streaming video online in June of last year,the potential to blend hot marketing elements
according to comScore. The company recentlytogether-- branded entertainment, paid search, viral
released the first comprehensive assessment of themarketing, consumer generated media, behavioral
online streaming marketplace and, surprisingly,targeting, website brand marketing and online
discovered that technology isn't just for youngstersgaming."And every time a user emails an ad, clicks on
anymore. Consumers between ages 35 and 54an Easter egg or conducts a search, we're learning
accounted for more than 45 percent of online videomore about our target audience. We'll take that
ads watched in August 2005. It is 20 percent moreinformation and improve, giving consumers what they
likely that these mature adults will watch an onlinereally want next time, and the time after that, and
video than the typical internet user, the study found,the time after that. The best part is that this is only
and people between the ages of 25 and 34 are 12the beginning.Michael Jones, founder and president of
percent more likely to watch a streaming video.Userplane, oversees the company's application and
These are hot marketing targets, and they love theirbusiness strategy, focusing on the future of live
streaming media."Contrary to public perception, it'scommunications through the development of web
not just 'college kids' or 'bleeding edge' internet usersapplications. During the past four years, Userplane has
who are streaming videos," said Erin Hunter, seniorgained recognition as a leading web-based application
vice president of comScore Networks media andprovider, in large part due to the success of its
entertainment solutions. Publishers are usingFlash-based Audio/Video Webmessenger (TM) and
innovations like high-quality video product clips, musicWebchat (TM) . Jones, one of the primary team
videos, movie trailers -- even news broadcasts -- tomembers in the design and development of the
engage consumers, Hunter said. "This creates aUserplane Community Suite remains the primary
fantastic opportunity for advertisers to capitalize onmanager of the application and its deployments.
what is now a mainstream audience," she added.2.)Currently Jones sits on the board of IdeaOasis, and
An evolving business mindsetholds advisory positions on several dating and social
The video ad pioneers have mainstream companiesnetworking websites. Prior to founding Userplane,
hot on their heels, jumping on the online videoJones was CEO of PBJ Digital, a national web
bandwagon. Todd Herman of MSN told that 23 ofdevelopment agency with clients ranging from Disney
the top 50 brands have advertised on the site sinceto Boeing. Among other activities, Jones has been a
its launch in August 2004. They include Pfizer, Procterkeynote speaker at the 2003 OFFF conference in
& Gamble, General Motors and Johnson &Barcelona Spain, a featured presenter at Flash
Johnson.Hunter, of comScore, says advertisers areForward 2003, a guest speaker at BlogOn 2004, and
"waking up" to the potential of online video ads.has written a number of published industry articles.
"People want more than a two-dimensional