New advertizing models for online videos by Lucia Mitrova

Obviously there is a trend that people like to watch their favorite TV shows not on TV but online. "Advertisers want to reach both audiences," said Jeff Ratner, managing partner and digital director at Mind Share Interaction. There will be a wind of change in the new online video experience. The wind is called impressions-based pricing model. It is supposed to come with time-based model. And what it is about? You know, when you are watching you videos online and you have to wait (or if you are lucky you get an option to skip) until the commercial is over then get to your video? And of course it happens with every video you click on over an over again. Well the time should be more user-friendly and actually save your time. With this kind of model the viewer will be exposed to commercial not before every video, but just once in specific period of time. This way everybody, meaning viewers and advertisers should by satisfied. "It's a better user experience because they now have a lot more flexibility to jump around and see different content and consider consuming more before being served more pre-roll," said Max Marvel, video sales director for msnbc.com. So who is using this model? It's the abcnews.com, Heavy.com, Video Egg and msnbc.com will be joining them next month. "A lot of it is being driven by the networks coming into the space. I think you are going to have pay-for-performance model as well. Right now it's essentially based on viewership," said Jeff Ratner.

by Lucia Mitrova for PocketNews (http://pocketnews.tv)

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