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In the Realm of Online Video, The Value-Exchange Model Wins Out

The first principle in marketing has always been putting the wishes and desires of the consumer first. But many practitioners are failing to follow this golden rule by placing unwanted, unsolicited videos all over the web.

It’s no secret that online video advertising continues to grow at a feverish rate. Emarketer projects the industry will grow greater than 40% annually through 2014 while audiences chose to watch advertisements over 1.3 billion times in Q1 2012 which marks an increase of 40% compared to Q1 2011, according to Visible Measures’ Social Advertising Report. Even as the space continues to evolve, many marketers are failing to realize its true potential.

According to Break Media, two-thirds of advertisers purchase pre-roll video spots. Not only are these ads intrusive to the viewer, they are also much less effective in comparison to more engaging forms of video advertising. Figures in Adobe’s 2012 Digital Video Advertising Report show only a 67 percent completion rate for pre-rolls and an even lower 50 percent completion rate for post-rolls.

This is where value-exchange advertising comes into play. Users of social and mobile games as well as other platforms voluntarily opt in to engage with brands in return for in-game virtual currency or other premium content. Since these interactions are entirely derived from the discretion of the consumer, completion rates are consistently among the industry’s highest at over 90 percent.

Not only do these videos not irritate the consumer, but they do just the opposite and create positive sentiment toward the “sponsoring” brands. Furthermore, advertisers can expect to see a boost in brand awareness, brand recall and brand recommendation. SponsorPay’s own research has found that 70% of users recall a brand that has sponsored virtual currency while 54% would recommend such a brand to a friend.

Additionally, there are several other offerings that this form of video advertising uniquely presents that others do not. Because of the format’s flexibility, additional post-view actions can be presented including social sharing, survey and/or poll participation and lead and sales generation.

In our digital age, consumers have more power over brands and advertising than ever before. By putting control into the hands of the individual in the form of a play button, an effective and engaging online video campaign can be crafted.

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