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Beyond Viral: How to Attract Customers, Promote Your Brand, and Make Money with Online Video by Kevin H. Nalty

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Chapter 10. Paid Video Advertising

In this chapter, you will learn:

  • Why most video start-ups have failed.

  • How to make money via online video if you're willing to invest time.

  • What video content will engage your audience instead of making them feel "pitched."

  • About another attempt at the Web-studio model that may work—or not.

Most marketers, especially those accustomed to buying television advertising, will marginalize their investments in online video to paid advertising. Without a doubt, the medium depends on advertising support since few have yet proven that subscription or pay-per-episode models can work. The paid play related to video has gone through several Darwinian evolutions

  1. Penny Ads. Initially, online-video sites had difficulty convincing advertisers to place ads adjacent to consumer-generated video. Most of the early advertising revenue was generated by discounted cost-per-impression ads that were literally pennies per thousand impressions. This hardly offset the infrastructure costs, but minimal revenue and copyright problems did not stop Google from seeing long-term value in owning the largest video-sharing property.

  2. Home-Page Featured Videos. YouTube was only able to attract advertisers for home-page placements (Quicken annually promoted its software via a promotional video on YouTube's home page). Soon, savvy viewers realized what YouTube calls a "video companion ad" or an "expandable autoplay video ad" (see Figure 10.1) was not entertainment, and they avoided it. I met ...

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