Advertising on user generated content

Most user generated media sites are looking for ways to monetize their content sites while keeping the user experience as the number one priority. Because of this many sites are employing overlay or ghosting ads to display in the lower third of the video window for a short period of time while the video plays.

This is very similar to the experience found on television on such networks as the USA Network and ABC. When compared to pre-roll advertising - the current staple of advertising on the web - the overlay experience is one users prefer. If you had the choice of sitting through a 15 or 30 second pre-roll ad or an overlay ad to watch a 30 second video clip wouldn’t you rather the overlay? As a user … I would.

In an August article from Media Post , according to Brightcove CEO Jeremy Allaire, advertisers are not fond of the overlay ads. In citing advertisers preference for pre-roll he was quoted as saying, “To our disappointment, there has been extremely limited uptake by the advertising community around these formats.” Read more about this in the article YouTube’s InVideo Ads: Smart Move, But Far From Final, Say Experts.

According to Chase Norlin, CEO of Pixsy, “The ‘overlay’ video ad model seems to be emerging as the new de facto standard for monetizing online video outside of traditional pre-roll advertising.” Pixsy is an online video and media search platform. This was from the Media Post article ‘OMG Advertising!’ YouTubers React To In-Video Ads.

In an OMMA Video program held in Hollywood on Nov. 14, it was discussed how advertising agencies in general are transitioning to address the lean forward interactive users of the web instead of the lean back viewers of television. Users are gaining a better viewing experience with shorter more actionable pre-rolls as well as a variety of other ad types that fit the interactive experience and increasing the number of click throughs. More advertisers are being drawn to online video due to the increase in quality content being produced by media companies. Though advertisers are being inspired by user generated content they have not bought in enough to trust it with their big brands. Sure there are a few clients that have jumped in like Dodge trucks but there are still others who are not adopting rapidly.

In an OMMA Video program session it was stated that 28% of advertising brands are interested in User Generated Content (UGC) while 40% plus are interested in the audience of UCG. In general advertisers are looking for a safe environment of UGC … a controlled branded environment.

Below is a video by MediaPost interviewing Joy Marcus following a panel discussion at the OMMA Video session.

brightcove - Link to video