Why Don’t Online Videos Get TV Advertising Dollars?

When I interviewed Obama Girl AKA Amber Lee Ettinger and the show’s creator, Ben Relles at a YouTube Live after party in San Francisco last month I was wondering what Barely Political would do after Obama took office and how they would take Obama Girl’s goal of getting Obama elected and turn it into something else.

Well, through the use of editing and special effects the team at Barely Political has turned Obama Girl from a hopeful fan into a full fledged stalker by having her singing a duet with Barack Obama and it’s pretty funny. The Obama Girl + Obama Duet! video is already climbing the charts on YouTube and I’m sure that it will rack up 5 million or more views this week. That’s better than many TV shows will do this week. But with 5 Million views why won’t this online viral video get TV advertising dollars?

I really wasn’t sure how Obama Girl was going to stay alive after the election but with this one little tweak Barley Political will now be able to continue their use of spectacle and story by grabbing future Obama sound bites and having Obam interact with Obama Girl. It’s a formula that should work. My only concern for Barely Political is cost. Obama Girl is a labor of love that has turned into a small corporate endeavor. The song is written and mixed by Michael Gregory, performed by Leah Kauffman and Barack Obama edited by Michael Stevens and who knows how many people were involved with the video and graphics teams and don’t forget the producers, directors and Amber Lee Ettinger. It’s not the Daily Show (It would be awesome to see Obama Girl Segments on The Daily Show) but one episode costs more to produce than most single segments on the Daily Show. Now keep in mind, Obama Girl is not getting the advertising income that The Daily Show is getting even though on a per segment viewing Obama Girl is getting more eyeballs than The Daily Show (I don’t know this for a fact.)

Online videos and downloadable videos for that matter are more engaging that TV, radio or news paper and they are more actionable. You can’t yet click your regular TV and buy a product but online video has that power. Web video is way more valuable for advertising and marketing than TV because it is trackable. If only Obama Girl (which according to TubeMogul has over 120 Million video views) could get TV advertising rates then it would open the door forthe rest of us online video producers and we would could live happily ever after. Right?

They say that what makes a great character is someone who is blind to their own faults. Obama Girl has no idea she is a stalker. She just wants to see Obama in the White House where they can live happily ever after… together. Online video producers are much the same. We can’t see that we are giving away valuable content for free. We love to make videos. We love to share them with the world. We just want to have sponsors land on our websites with big bags of money and beg us to place their products on our videos and live happily ever after…together. We are blind to our own faults. Why aren’t we getting TV advertising CPM?

I have a few ideas.

Here are a few things that I can think of off the top of my head as to why web videos aren’t getting TV advertising rates but I’m sure there are more.

1. It’s not easy for media buyers to buy online video inventory.
If a media buyer has a million dollars to spend it’s hard to find that much inventory and be able to buy it with one of two deals. No media buyer wants to negotiate 58 different deals with 58 different online video producers.

2. With a single media buy Web video doesn’t have the reach to move the needle for a national advertiser.
If you are a Hollywood movie studio you can’t yet do a web video buy that’s going to move the needle and put butts in theater seats this weekend. You could build awareness over a month’s time but it’s going to take a lot of work buying the media to do it.

3. Advertising agencies don’t have control of the web video inventory yet and can’t make money without a lot of effort negotiating with individual producers/publishers.
Advertising agencies are use to buying TV inventory in advance or “UPFRONT.” The online video world isn’t set up that way yet.

4. Video Producers don’t know what their inventory is or how to sell it.
Many online video producers know what pre-rolls and post-rolls are but they don’t know how they could install the technology to dynamically deliver video ads in front of their videos and even if they did they don’t know how many available spots they have to sell. Nor do they have a media kit that explains to a media buyer what they have to sell.

5. Video producers don’t speak advertising.
Many Internet video producers have never heard advertising terms like: Adjacency, Affiliate, Avails, Average Frequency, Average Quarter-Hour Rating, Barter, Bonus Spot, Brand Development Index, Break Position, Broadcast Calendar, Category Development Index, Clearance, Clutter, Coverage Area, CPA, CPC, CPM, Cumulative Audience, Cut-In, Daypart, DMA, Diary, Direct Response Advertising, Efficiency, Exclusivity, First Refusal, Fixed Position, Flighting, Flow Chart, Gross Impressions, GRP’s, Guarantee, Heavy-up, Hiatus, Little America (or Little U.S.), LNA, Log, Mail-Order Advertising, Makegood, Media Kit, MRI, Net Cost, Penetration, PI, Psychographic, Quintile, Rate Card, Rating, Reach, Roll Out, Roadblocking, Share, SOV, Short Rate, SMRB, Sponsorship, SRDS, Starch, Sweeps, Telmar, Upfront, Vehicle.

6. Web Video Producers Don’t KNow How To Sell Advertising
I’ve said it before and I’ll say it again, creative people think the word “Sales” is a dirty word. We are OK with the word, “Pitch” but selling is not something we are comfortable with. We need to change this.

Do you have any others to add?

If you are interested in advertising or sponsoring an online video please contact me. I have many friends in online video and can hook you up with inventory that will help you reach your marketing goals.

If you are an online video producer looking for advertisers or sponsors. I can help you build out your inventory and connect you with advertisers and sponsors.

  • I absolutely agree with you, especially #5 and #6. Part of the essence of creative types, whatever the medium, is to continue to become educated, and not to rely on others to 'school' them. We must take responsibility for our gifts so that we can make educated decisions regarding our creations.

    Although advertising speak, meetings and selling is pretty daunting and possibly more than a bit dry (for creative folks), I absolutely believe that we can shift that for ourselves also. We simply have to welcome educating ourselves about advertising and the like with the same zeal and passion from which we create. We choose to empower ourselves in this way and the suits won't know what to do with themselves ;)

    I would love a meet up...mind you I'll show up when I'm in LaLa land...who knows when that will be :)
  • kiki Love
    I am definitely interested. Count me in or please give some more information. Thank you.

    Cheers!
  • I think with the ad downturn we are going to see more spend in web video because web video CPM are low but yet very effective and trackable.

    So now it looks like we have 4 people interested in a meetup about online video advertising?
  • Great article #1Tim! I would be extremely interested in a "HTS&BOVA&S" meet up! You really hit the nail on the head - and I knew all the lingo except "psychographic" & "quintile"!
  • Great points Tim. Ad downturn certainly not helping either. Still, most advertisers & agencies are not looking for one-hit wonders or novelty acts. They understand (read: comfortable) episodic series and want a measure of predictability in both content and audience (i.e., size, demo, location, etc.)

    Video ad IOs require a certain level of critical mass to be worth time for advertisers' media buyers/planners. Unfortunately ad buying is still very high touch outside of ad nets (and look how advertisers feel about them for most part).

    Would be interested in the meetup to discuss this further.
  • Hey Tim- that would be great! I can do it starting the week of Feb 1st- I'm sure lots of people would be interested, or at least they should be! Just email me when you have a sec and we can discuss.
  • I think I could put together a "How To Sell and Buy Online VIdeo Advertising and Sponsorships" MeetUp in LA.

    When would you like to do it?

    Would anyone else be interested in this?
  • Thanks Tim- point 5 hit the nail on the head for me- as much as I'm trying to wear multiple hats as a web content producer I am sadly clueless when it comes to web advertising terminology, thus the web advertising model in general. I guess that is the next project on my plate- any desire to host a meetup to enlighten those of us wanting to learn the broad strokes of the topic ? I'm buying first round.
  • Thanks Marc. I think this is the year that marketers will discover the effectiveness of online video and video producers will band together to offer more reach.

    There have been many times that I have been in talks with an advertiser and they like French Maid TV but they don't feel it's right for their brand.

    That said, I'm in talks with several online video producers about having them come with me under the APE Digital umbrella in a non-exclusive way so that I don't let these marketers go away empty handed.
  • Right on. Was worried this would be a "but we're just as good as tv" screed. But you hit all of the roadblocks on the head. And that's where success will come from for video. Either the delivery of enough consistent content to enough eyeballs or a run of site for a niche site (the rise of ad brokers?). TV works because advertisers know what the content is and who/how large the audience is likely to be. It's still a different model online.
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