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View Points
The Billion-Dollar Question: How Will Internet Video Ads Make Money?
By Emily O'Halloran, Digital Advertising Lead, Media & Entertainment

How video advertising will produce significant revenues was the subject of a panel discussion I participated on at the recent National Association of Broadcasters (NAB) 2008 convention.
The panel, which included participants from CNN.com, Microsoft TV, Permission TV, Abacast, Technicolor Electronic Distribution Services and InterVox Communications, focused on the business and cost models for video advertising, which are still being developed. Even though we can point to only a few profitable sites, in general we were quite upbeat about the possibilities of generating significant revenues in the coming years through broadband video advertising.

The industry is undeniably moving from a subscription-based business model to an advertising-based business model where content is being distributed for free and advertising is the way to monetize the channel.

One of the panelists spoke of the difference between Video 1.0 and Video 2.0. That is, if you're going to repurpose existing content, you have to remember that it has to leverage the unique character of a Web 2.0 world where you shorten it to make it more relevant. I couldn’t agree more.

One of the points I stressed is the need to embrace the more creative, interactive modes of advertising enabled by the Internet. In the digital environment, advertising can be a two-way dialogue, allowing for a compelling user experience that holds a consumer's attention longer and engages them in additional actions.

Bottom line, I believe that both great people and innovative technologies are going to be needed to achieve high performance in the digital age. Are you prepared?

A weblog is an online, semi-personal journal offering the opinion and commentary of the author on conversations and stories that appear elsewhere on the Web, along with links to relevant websites and articles. The opinions of the writer do not necessarily reflect the position of Accenture on this subject.

June 2008
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