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May 23rd, 2006

Google Video Ads May Accelerate Paid Media Advertising Death Spiral

by Scott Karp

Michael Arrington is betting against Google’s new pay-per-click video ad program, and so am I, but it’s even worse than Google failing (again) to break into “traditional” advertising. Focus on Mike’s reason #4:

Fourth, people don’t want to click on video ads. They don’t want to watch this stuff at all, really. And if a company comes up with a really cool ad, like Honda’s wonderful “Cog” ad, it’ll spread virally. They don’t need to pay users to watch it.

Google’s video ad program will shine a spotlight on the dirty little secret of TV (i.e. video) advertising — most video ads have NO VALUE to consumers. DVR ad-skipping technology is such a threat to TV ads because TV ads SUCK. They interrupt, they annoy, they pander, they convey no useful information.

Unlike Google’s wildly successful text ads, which revolutionized advertising by conveying discrete chunks of information that consumers could evaluate without feeling mugged, video ads are all about advertiser vanity and ad agency profits.

Mike raises the example of Honda’s “Cog” ad, which is a rare form of video ad — one that actually entertains and thus has value as content, such that the marketing is incidental — and thus highly effective.

For pay-per-click video ads to be effective, they must have standalone value as content — and if they have standalone value as content, consumers will seek them out WITHOUT A PAID MEDIA INTERMEDIARY like Google or a TV network.

Marketing through video content may thrive on the Web — but in a networked 2.0 media world, brands will learn that if they create compelling content and compelling experiences, they won’t have to pay intermediaries to force the content on unsuspecting consumers.

Comments (7 Responses so far)

  1. i wonder if google really does understand that video ads like this just aren’t going to work, but that their sales folks are hearing demand for it. so they feel compelled to offer it. google hasn’t really done that in the past, but what if they feel that the industry just needs to get the pay-per-click video stuff out of its systetm, so it’s going to offer it to appease them, and then show them exactly why it sucks.

    and that’s why it’s nowhere on google.com?

  2. […] […]

  3. Amen, brother. Maybe the answer is to let your users generate really compelling ads that work as content (see Firefox Flicks).

  4. Oh it will work, at first. Then people will adapt and google will figure it will have to stick with text ads.

    -Milo
    wtfland.com

  5. Michael Arrington, de Techcrunch, n’y croit pas (lire ici). Et il donne plusieurs raisons, dont une toute simple : “Les gens ne cliquent pas sur les publicités vidéo. En fait ils ne souhaitent pas vraiment voir ces publicités.”A lire également (ici), le post, sceptique lui aussi, de Scott Karp sur “Publishing 2.0″. Il explique : “Pour que la pub vidéo au clic fonctionne, il faut que les spots publicitaires soient intéressants pour le consommateur. Et s’ils sont intéressants, le consommateur

  6. Google Video Ads May Accelerate Paid Media Advertising Death Spiral

  7. It is my understanding the video ads will be contextual and in my opinion it was the contextual element of adsense that clicked with readers; no pun intended…the videos might actually be a really big hit and further compliment the reader’s experience as to click and view is by choice; their interest is driven by context. There is nothing to figure out or work around for the reader. Other than scrolling past these ads…

    BB

  8. […] Google wants to get into video advertising and become the broker for TV advertising. Let’s hope for the sake of Google shareholders that Google does better with video brand advertising than it did with print brand advertising — and that niche sites don’t get wise to fact that they don’t need Google to sell brand advertising. […]

  9. Comment on Google Video Ads May Accelerate Paid Media Advertising …>>

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