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Online Video Advertising: Desperately Seeking Premium Content

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With online video gaining a strong audience, online video advertising feels poised to start generating big profits. It's not there, yet, though, and a panel at Streaming Media East examined the new ways of working that are intended to drive revenue.

The problem is that advertisers only want to purchase time on premium content, explained Brett Wilson, co-founder and CEO of TubeMogul, and there isn't enough premium content online to satisfy the demand.

"On the advertiser side, you've got a market where there's not enough premium content, so most premium publishers, they're actually sold out of video - and that's the video that advertisers want. They want to run a pre-roll in video that you know," said Wilson.

"So for normal, non-TV publishers, that begs the question how do to you make a business out of this?...A lot of the best advertisers, they're now creating ads where the ad is the content, and they're syndicating their content where people may actually choose to click play on the ad. Google says that by 2015, half of all ads may be click-to-play," Wilson added.

In that situation, he said, content creators have the opportunity to change their business model and help advertisers create made-for-the-Web ads.

Not everyone on the panel, however, agreed that premium video is the only kind that can lure advertisers. Wilson caused sparks with fellow panelist Paul Kontonis of Digitas when he said, "If you're a media buyer, the last thing you want to do is take a brand that's taken billions of dollars to create and put it in front of a show that no one's heard of."

"It's a show you haven't heard of," countered Kontonis.

To hear more on new avenues in monetization, watch the entire video below.

Open Distribution Versus Premium Monetization: Striking the Right Balance

Content producers need to distribute their content as widely as possible in order to build a brand, grow an audience, and augment revenues. But in a world with infinite UGC and reduced barriers to entry for professional producers, there doesn't seem to be enough advertising to support the ever-increasing supply of content. In this session, we examine the different strategies required at various stages in a content producer's life cycle to achieve the above objectives without diluting leverage and pricing power for securing various revenues streams on multiple platforms.

Moderator: Ashkan Karbasfrooshan, CEO, WatchMojo.com
Speaker: Brett Wilson, Co-Founder, CEO, TubeMogul
Speaker: Lance Podell, Director, Global Head, Next Lab and Audience Development, YouTube/Next New Networks
Speaker: Paul Kontonis, VP/Group Director, Brand Content, The Third Act, Digitas
Speaker: Hillary Townsend, Marketing Manager, Bluefly

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