Google’s Three Screen Ad Strategy Heralds Its Second Act

Many pundits have criticized Google as a one-trick pony that makes money from one thing – search on the desktop. There’s certainly some truth to that, but Google’s moves over the last few years foreshadow an audacious three screen advertising strategy that, if properly executed, would represent a ground-breaking second act for the company. By aggressively pursuing platforms on mobile and TV in addition to their traditional perch on the desktop, Google is positioning itself to deliver ads across all three screens and trump the capabilities of both Apple and Microsoft, who have made far less inspiring moves in the advertising world.

Read More: JackMyers.com

John Mayer’s LeBron Spoof Satisfies Fans’ Growing Content Cravings

Since Monday a new video featuring musician John Mayer’s spoof of LeBron James’s ubiquitous “decision” TV special has collected an additional 30,000 views. That brings views of the parody video – which doubles as a summer tour promo – to over 192,000 as of noon today.  “After giving it a lot of thought and careful consideration I have decided that I’m going to play for Cleveland,” says Mayer in the video in a deadpan monotone. “So as not to offend my fans in South Beach, I’d also like to announce that I’ll be playing for Miami,” he continues, adding, “I’m also going to be playing for New York City.”  Those three cities, as anyone who’s glanced at sports coverage recently knows, were among the likely locations for former Cleveland Cavaliers offensive powerhouse LeBron James to choose as his new home as he made his much-hyped decision as a free agent. James chose to play for The Miami Heat starting next season, though the New York Knicks were also reportedly in consideration.  “The John Mayer bit works because it’s timely, clever, and reflects his personality,” said Edith Bellinghausen, SVP digital business at entertainment firm Razor & Tie, which puts out bands and artists including Day of Fire, Matisyahu, and Natalie Grant.

Read More: ClickZ

Online Video Ad Segment Poised to Explode

The online video advertising market is poised for rapid growth over the next few years, according to eMarketer.  The research firm estimates online video advertising spending will grow more than 48 percent this year, reaching $1.5 billion. By 2014, it expects the video ad market will top $5.5 billion.  ”Video fulfills branding objectives better than any other current online ad Format — with the sound, motion and emotion of TV, but with better measurability and targeting,” said David Hallerman, a senior analyst at eMarketer. “The continued development of more professional-quality video on the Web makes the target audience more receptive to advertiser messages and thereby encourages advertisers to spend more for video ads.”  Still, spending growth does not necessarily correlate with current market importance. While video ad spending growth will far outpace that of any other online ad format from 2009 to 2014, it will still represent only 6 percent of all Internet advertising expenditures in 2010.

Read More: AdWeek

Social Networks Sink Online-Ad Pricing

Social networks and their endlessly growing page views have dominated every sphere of the web — from audiences to ad impressions. But there’s one area where they still can’t seem to catch up: ad prices.  A recent analysis by ComScore shows social networks, primarily Facebook and MySpace, have over the last year drawn an average CPM of only 56 cents, compared to the $2.43 average for the internet at large. Looking more closely, the ComScore data show that the average pricing for online ads exclusive of social-networking sites, namely Facebook and MySpace, would be much higher, about $2.99 for every 1,000 views; social sites dragged down the average online CPM by as much as 18% over the last year.   Some industry executives are concerned that Facebook and its ilk may in fact be reducing the overall pricing of CPMs, or the cost-per-thousand impressions, that are the basis for online ad pricing.  “Social networks are going to be a challenge for everybody, as the sheer dominance of the impressions they’re making flood the marketplace with inventory,” said Keith Lorizio, Microsoft’s newly installed head of U.S. sales. “And it’s especially a challenge for every publisher, as they drive down CPMs.”  The low-cost rates on social sites don’t necessarily mean they’re driving down the pricing for other publishers. In fact, much of the collective downward pressure on ad prices could be attributed to the mass of inventory altogether — it’s supply simply outstripping demand.

Read More: AdAge

TwitVid Launches Video Ad Network

Twitter video hosting service TwitVid today launched SocialAds, a standalone video advertising network designed to help businesses connect directly with their audience by collecting followers and retweets for their advertising campaigns.  “Traditional means of monetizing video has heavily relied on pre-roll ads, which work great for premium content but can be quite suffocating for an end user who may only be trying to watch a short video,” said Mo Al Adham, co-founder of TwitVid, in a statement. “SocialAds offers an alternative advertising solution, which provides measurable value to both advertisers and viewers. Through SocialAds’ proprietary technology, media viewers are exposed to social media accounts targeted to be of high interest to them. In turn, advertisers are exposed to and gain engaged customers whom, once acquired, can be communicated with as a trusted brand.”   Advertisers and agencies are shifting some of their spending to online from TV, according to an April 2010 study of digital media and marketing pros by DM2PRO and Tremor Media. In fact, 94% of those polled expect to increase online ad spending this year, with almost 45% shifting those dollars from TV, the study reported.   In a private beta test, participating brands generated more than 400 new followers in less than one hour, TwitVid said. As a result of seeing the commercials, 2% of viewers began following a brand, according to the video hosting service.

Read More: InformationWeek.com

Foursquare Frenzy

Dennis Crowley, co-founder of hot location-based social service Foursquare, addressed a roomful of marketers in June. He asked for a show of hands of how many had tried to work with the company but didn’t hear back. A lot of hands went up. The simple message: the still-small company is struggling to further develop its service while responding to the avalanche of requests.  Now, with $20 million in new funding, agencies are hopeful the digital world’s new belle of the ball will build tools to help them use the service in deeper ways.  Adweek spoke with several agencies that report frustrating experiences with Foursquare. Some have found it both hard to contact and unwilling to come up with marketing ideas. One agency representing a major package-goods client said the company put the onus on the brand and agency to find the best way to use the service.  “They’re not responsive and extremely hard to work with,” said a digital agency exec who asked not to be named. “It’s hard to bring campaigns to life. Nobody knows how to create a badge or ask [Foursquare how] to enable behavior. It’s black magic.” In general, he said, “it’s pretty much unworkable.”   One sticking point is Foursquare’s strategy of initially limiting advertiser participation. Pepsi, for instance, has an exclusive lock on the soft drinks category. Additionally, Foursquare has identified one “charter advertiser” for some major categories, which it then works with to better understand what works before taking on other advertisers. While less formal than exclusive contracts, it nonetheless leaves some competitors out in the cold, if only temporarily.

Read More: AdAge

Startup Lets Web Advertisers Bid For Your Attention

The real dream of any advertiser is to grab the attention of the right person at the right time. A new approach to online advertising, known as real-time bidding, could help make that vision easier to achieve.  Real-time bidding involves auctioning off the opportunity to show an online display advertisement to a specific type of user at a precise moment. A San Francisco-based startup called Triggit recently scored $4.2 million in funding from two venture capital firms, Foundry Group and Spark Capital, based on the promise of its real-time bidding platform.  “Every person has a different value to different advertisers,” says Zach Coelius, Triggit’s CEO. He points to the advertising auction system used by Google for search keyword. People searching for particular keywords are bracketed together as likely having similar intentions. With display advertising, he says, the interests of the person visiting a page is less clear, and it’s more difficult to match an ad to the ideal user. It is increasingly possible to gather information about a user by looking at her browser’s cookies–tiny files that show which sites she has visited. But matching this information to advertising is a still relatively crude process.

Read More: TechnologyReview.com

Google Working On Secret New Ad Format: “Interactive Video Ads”

Google is still casting around trying to find another revenue stream that will carry the company now that search is maturing.  The latest idea?  Interactive video ads.”  Eric Schmidt pitched the idea at Allen & Co.’s Sun Valley conference, Jessica Vascellaro reports:  Google Chief Executive Eric Schmidt championed “interactive video ads,” which he said are on the way. Such ads, which could appear anywhere on a Web page, not just inside a video, would be like mini-Web pages. That means they could allow Web users to watch a video, leave a comment and see real-time updates within the ads that are more customized to their interests.  Mr. Schmidt said in an interview Thursday that he has pushed Google’s ad teams to think about the potential for such ads, which he suggested would eventually become prevalent. But he didn’t comment on any specific plans for them.  Sounds like a stretch. 

Read More: BusinessInsider.com

Tech Companies Work To Come Up With Ad Ideas That Click

As media companies voice doubts about whether they can build their digital businesses on advertising alone, technology companies gathered in Sun Valley this week are trying hard to convince them to think more creatively.  In a range of interviews on the sidelines of the conference, Internet companies from ad juggernaut Google Inc. to small upstarts have pumped the promise of new formats that are more effective than banner and search ads, the staples of the digital ad industry to date.  Google Chief Executive Eric Schmidt said in an interview late Thursday that a new killer ad format—which he dubbed “interactive video ads”—is coming. Such ads, which could appear anywhere on a Web page not just inside a video, would allow users to interact with the ads in new and more engaging ways, such as asking users to click on a video to learn more about a product. He said he has encouraged Google’s ad teams to think along those lines, but didn’t comment on any specific plans.  Andrew Mason, chief executive and founder of Groupon Inc., said in an interview that his company—a fast-growing startup that distributes daily deal newsletters—is here talking to media companies about reinventing local advertising.

Read More: WSJ.com