Tuesday, April 25, 2006

Five Second Video Ads?

There is no doubt that the Internet as a medium has arrived as marketers increasingly utilize it as a way to reach and communicate to their current & future customers. Now with improving bandwidth and faster download speeds videos are catching the consumers attention. Sites like YouTube, Google Video, heavy.com and others are witnessing record traffic growth because of the popularity of videos. It is this background Metacafe has arrived with a new business model.

Metacafe is looking to carve out its own niche by going for the middle ground. Metacafe wants to play in the space between user-generated content at one end (YouTube and Google Video) and exclusive or edited video selections at the other (iFilm and Heavy.com). Metacafe manages uploaded content with “collaborative filtering” by its own viewers to enable the best videos, posted by users or professional video-content providers, to bubble up. In addition, Metacafe draws an older audience than the teen popular YouTube.

Arik Czerniak, chief executive of Metacafe wants marketers and ad agencies to tailor messages to the preferences of viewers of short-form videos online. He feels 5 second video advertisementnt before videos would be more meaningful than the 30 second videos. His business model is simple:150 million monthly video impressions with five-second ads at a $10 cost per thousand delivered randomly could bring in some $2.5 million a month. In his estimation, that’s more than enough to qualify as successful. Link: AdAge 04/24/06 - Are Five-Second Ads the Future of Web Marketing?

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