MTV and Google to Display Advertising on Web-based Video
Google made a killing with the way it popularized contextual advertising and how it shared the rewards (read: money) with publishers, particularly those who used AdSense. What’s great is that the advertisers were able to target their marketing efforts to those who are likely to be more interested, and that they didn’t have to pay a cent for deadweight in advertising, since they only get charged for clicks (or theoretically, at least, because clickfraud has been rampant lately).
In contrast, traditional advertising has always been riddled with inefficiencies. Advertisers spent millions when the marketing would be aimed at a very broad audience, most of whom aren’t likely to be relevant at all.
The concept of Web video has been a boon and bane for traditional media stalwarts. First, there is a threat that Internet video would eventually supplant broadcast TV. But there is also great potential for Internet TV becoming the next multimedia goldmine. If only there was a good way to incorporate marketing into videos, then both online video providers and producers would have found the holy grail in online advertising.
It seems today’s biggest names in either side of the spectrum are trying to do just this. From Reuters:
NEW YORK/SAN FRANCISCO (Reuters) - Viacom Inc.’s MTV Networks has agreed to distribute clips from its cable networks over Google Inc.’s advertising network, in a test of what could become a new economic model for Web-based video delivery, the companies said on Sunday.
The project, a year in the making, marks the first time Google will distribute ad-supported videos across its AdSense network from a major programming provider. The ad-supported video distribution project will begin testing later in August.
Google’s AdSense network currently handles primarily text and graphical-oriented brand advertising. The MTV trial, if successful, would highlight the progress Google is making in evolving beyond its reliance on delivering Web-based text ads from which it derives most of its revenue and profit.
Expect to see popular Viacom properties online–this would include MTV and Nickelodeon shows, such sa Spongebob Squarepants and Laguna Beach.
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