Online Video Ads Finally Find Their Niche

While online video ads have until now been hampered by a lack of standards and the difficulty of putting ads around user-generated content, PBS MediaShift reports that things are starting to change, as media sites like Hulu build sizable audiences with professional content, the IAB releases a set of standards for video ads, and video production companies like TurnHere and PixelFish offer to shoot video profiles of small businesses.
“The pre-roll [video ad] is dying,” said Steve Safran, senior vice president of the Media 2.0 division at AR&D. “It’s the only way we’ve had to deliver ads so far, but it’s going away. The audience hates it. Overlays are an improvement. They also have the ability — like a Google AdSense ad — to target the viewer based upon what the viewer is watching. We have got to get away from the idea that selling video ads by the CPM is the way to go. You’ll need millions of impressions to make any money, and you still won’t come close to turning serious profits. The way to sell video is by the demographic, one viewer at a time.”