Video overlay ads launching on video portals

Google introduced video overlay ads for YouTube, as this article on read/writeweb says. As a user I don’t like the idea of these ads“interrupting“ me, but it will infact be a good way of better monetizing the video experience. They’re offering it on a CPM basis for now, which seems odd to me, but I guess that might change once they know how well it is accepted?

Also, they don’t seem to be the first to launch this (by far not), as this Tecrunch article states.

Facebooks future targeting strategy

So who is surprised about this move, really? Wasn’t it obvious that at some point, Facebook will leverage their knowledge about their userbase? As it says in a Wall Street Journal article:

Social-networking Web site Facebook Inc. is quietly working on a new advertising system that would let marketers target users with ads based on the massive amounts of information people reveal on the site about themselves. Eventually, it hopes to refine the system to allow it to predict what products and services users might be interested in even before they have specifically mentioned an area.

Sofar, targeting was only possible in terms of age, gender and location. In the future, targeting variables can include anything that users enter, e.g. personal information, planned events, music preferences, and much more, especially if information from widgets is included…

This sounds much like the well-feared transparent consumer. But apparently, Facebook will at least not disclose any information to advertisers:

Facebook would use its technology to point the ads to the selected groups of people without exposing their personal information to the advertisers.

The only thing that strikes me is the fact, that the ads will be within the news feed area. Of course, that’s an area with lots of attention, but I doubt users will like that! But, according to that article, Facebook needs these iprovements, because people spend a lot of time on the site, but don’t click on the ads…

What will be the „Youtube for online games“?

Just a quick note: this could be interesting: apparently, after all the bookmark, photo and video sites, there is one new „user generated content“ thing for which VCs put up their money: online games.

Sofar, we have two sites racing for the jackpot: Kongregate and YoYo Games.

I doubt the potential is as big as for any of the other typical Web 2.0 sites, simply because it is so much more difficult to conceptualise a computer came, with all its rules, scenarios, player modes, levels, etc.

At the same time I am sure the market is still big enough for good advertising potential, since people will probably spend even more time on these online games portals than they will on Youtube.

(The only thing the sites need to make sure: that the players will see a range of ads, even though they are most likely spending a lot of time on a single page. Remember the discussion about the death of the page view?)

Links & News, 09.08.07

More on advertising on social networks via widgets

Some more ramblings on advertising on social networks, as I have written about it lately already: Sean Carton also thinks that advertising on social networks won’t work properly using regular ads. His point of why widgets might be the better solution (and I agree):

This is why widgets have been getting so much play lately: they don’t intrude on the user experience. Yeah, they’re branded. Yeah, they’re obviously a product of crass commercialism, but when done well they enhance rather than detract from the experience. They can become part of the conversation you’re having with friends and acquaintances, not an interruption of that conversation. Are widgets the answer to how advertising can work in social networking?

Not at all, but they’re a beginning. The answer will become apparent when we think outside of the ol‘ display advertising box and start to imagine ways we can work with the essential nature of social networking, rather than against it.

How can we join communities of interest in an authentically helpful way? How can we give consumers the tools to facilitate their conversations about our products or services (conversations they’re going to have anyway, with our without our help)? How can we help connect them to get help, advice, or suggestions from others (Dave Evans has a few good ideas)? How can we make it easier for true believers and brand fans to do the selling for us (or help recruit new fans)? How can we work with what’s going on rather than against it?

The question is, whether this is really a solution for all advertisers. Also, these considerations, same as the debate about the effectiveness of contextual ads only focus on the click rate as the only measure of success. I know, I know, we’re in the interactive space, so why go back to the old ad measurement models?

But then again, an eyeball is an eyeball and nobody can deny the value of attention of these eyeballs. Even if the click rate suggests failure, the message might have stuck. Don’t you think? Otherwise you would reduce the awareness and brand building capabilities of the online space to a story of how many people clicked, not how many people saw and remembered the message. That can’t be right, can it?*

But, going back to Seans point: yes, let’s rather entice the consumers with something of value. Something that provides this value at a point in time and (web-)space, where the consumer will most likely associate the best positive times with your brand because of your contribution to their needs and preferences. If it can be done best on social networks providing widgets (at least for now), then think of a good idea and go do it!

(*I am not oblivious at all to the fact, that interaction with the ads (i.e. clicking and interacting with the subsequent pages) will reinforce the message, make the whole awareness campaign x-times more successful!)