Wednesday, December 17, 2008

Online Video Ads

http://online.wsj.com/article/SB122938787020808913.html

The recession is hitting every market hard right not. That includes to my surprise, the online video ads market. Projections for the total amount of money being spent on online ads in 2008 was $850 million, which is a 45% increase of the total spending in 2007. But the real number are starting to come in and the true numbers are falling well short of expectations, but the spending is still increasing.

Some believe that the total online ad spending is down because of the recession, while other think that it has to do with the lack of overall efficiency becuase of the lack of a true viewing format and due to high placement prices. There are also many different sites on which NBC, CBS, and ABC shows are being viewed on which affect which type of person is viewing the video and that is trouble for marketers who are trying to appeal to certian markets.

I think that online shows should have no commercials. I believe that sponsors should just pay for the entire show to be commerical free. The sponsors would get a commerical at the beginning of the show and one during the middle that only last about 5 to 10 seconds. They are starting to do this on real TV sometimes for big events. I think that this world work best for online viewing because people are going on their for convienence and dont want to waste their time watching worthless commericals.

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