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Brand TV & the Rise of Online Video

Jane Seery takes a look at how brands are embracing video to grow their audience, monetise content, sell products and engender loyalty.

Jane Seery

"It's not South, it's not Suffolk, it's not analogue….so it must be…..North Norfolk Digital". With an unspoken 'Aha', it's an announcement that heralded the return, in November 2010, of comedy legend Alan Partridge, with a new online video show entitled "Mid Morning Matters" set around the fictional radio station.  His increasingly desperate pleas "to let me on the telly" were finally answered, though probably not in the way he expected.  In true convergent style it wasn't the BBC responsible for giving him a platform, or any other broadcaster for that matter, but Fosters, the lager brand, who commissioned and funded the web series for its You Tube channel.  With around 4 million views, the show's huge popularity has even led to a potential commission from Sky Atlantic for a 'proper' TV series.  Back of the net! 

A Growing Audience

The audience for online video is huge, with 26.9 million people in the UK watching video clips during April 2011, according to analysis from UKOM / Nielsen. Recent research by US firm Cisco reveals that by 2014, 90% of all the worlds' internet data will be video. With 3 billion videos viewed daily on YouTube and its status as the 2nd largest search engine, it's clear that video is a rapidly expanding area. Nowhere more so than in online advertising, which has seen record growth over the past couple of years. According to the I.A.B (Internet Advertising Bureau) spend increased by a massive 91% from £4million in 2008 to £54million during 2010 and looks set to continue throughout 2012. As more companies and brands dive into the video advertising pool, getting their message across in a unique way will become increasingly important. 

Clever Advertising

Internet advertising certainly has the edge over TV in terms of freedom. It's not yet bound by the same regulations and is able to target its audience more specifically. It can also engage very effectively through interactivity.  Users can click through to social media pages, brand websites and even influence the outcome of a video, as demonstrated in the popular viral ad for Tipp-Ex. In the ad a hunter stands in front of a bear as the phrase "Hunter shoots a bear" hovers above in the title position. Reaching out of frame for a giant Tipp-Ex located across the page, he erases the word "shoots". We, as users are invited to type a word in its place, press play and the film replays a new scene to reflect the word entered. It's a fun way to encourage repeat returns to the ad. 

Targeting Groups

One message for the future development of online video advertising suggests emulating TV broadcasters by producing content aimed at specific demographics and to schedule accordingly. The kind of content proving successful also resembles that which is produced for TV, such as comedy or drama web series. Brands seek engagement as well as loyalty and content that manages to entertain and inform, can successfully garner attention. Using narrative storytelling and engaging characters is a compelling way to draw the viewer in and was used to great effect with "Mortal Kombat: Legacy", a high-end web series based on the Mortal Kombat video game. The first episode premiered on YouTube receiving over 5 million views in a week and helped drive sales of the latest game to more than 3 million. 

Loyalty Leads to Monetisation

As video advertising continues to diversify, attitudes will shift and brands will need to view their customers as an audience rather than plain consumers. Addressing its needs by offering helpful content such as tips, demonstrations and 'how-tos,' which in turn will increase brand's own value as the content is evergreen. Video is considered prohibitively expensive by some, due to the high cost involved in doing it well, but given that a web page containing video is fifty times more likely to appear on a front page Google search, its potential impact is clear.  For bigger more established brands, with the funds to match, setting up an online TV platform is one way to encompass all these offerings and make it pay long term. One company currently pulling this off successfully is Marks & Spencer.  M&STV offers its customers more than just sales patter to shift products, in the form of short videos with style tips and advice. Learning how to dress up your jeggings and selecting the right Shapewear to flatter the figure, combined with high-end production values gives customers a reason to keep returning to the site. Adding in the ability to click through and purchase products directly from the video simplifies the process for the shopper and has resulted in a 25% overall uplift in sales for M&S. 

Here Comes the Revolution!

With the arrival of connected TV, where traditional television advertising will sit alongside online, it could be the start of a whole new ball game. Will boundaries blur, merging the two to create a new form of advertising? Will new technologies emerge along the lines of Inskin, the display ad format that wraps around and frames moving content? Then of course there are additional platforms to consider such as tablets and mobile, perfect for utilising location-based advertising whilst on the move.   With such a range of opportunity, increased competition is likely to push the boundaries of innovation further resulting in an industry heading towards an exciting revolution. 

BBC VOD Stats & Performance 2009 - 2012

An Excel spreadsheet version of the BBC's latest monthly iPlayer stats with underlying data and more graphs. Yours to download for free!