NBC takes (no) 30 second video pre-roll ad stand

How committed is NBC Universal to capturing the “rising currency” that is broadband video on the Web?

Peter Naylor, SVP, Digital Media Sales, NBC Universal, reaffirmed NBC is in to win, as the kick-off speaker, and principal sponsor, of yesterday’s Interactive Advertising Bureau (IAB) Leadership Forum on Digital Video that took place in midtown Manhatttan.

How big the market opportunity? eMarketer forecasts Internet advertising spend by 2011 at $37 billion, with the video portion representing about 10%, or $4 billion.

NBC is eyeing its more than fair share of the predicted online video advertising billions. How does NBC plan on reaping such digital rewards?

All video is not created equal, Naylor asserted: From long form TV shows to short form video clips, from professionally produced videos to User Generated Content (UGC) and from perishable content including news or weather videos to evergreen videos such as health information and how-to videos, online video is a many splendored thing.

One thing is certain, however, according to Naylor: The winning online video model will be an ad supported on.

Beyond that core video principle, however, everything else is on the table, almost, Naylor believes. What are the best practices for broadband video, Naylor asked, and answered: “They are undiscovered as yet.”

Any and all online video practices, however, must accomplish two objectives, Naylor underscored:

1) Provide a vibrant and engaging experience for viewers,

2) Be effective for marketers.

Towards those ends, Naylor previewed new NBC video advertising standards:

As part of an ongoing effort to improve advertising engagement, NBC Universal will adopt a new standard for online video advertising.  Beginning in July, the company will only accept pre-roll ads that are 15-seconds or less for short-form digital video content.  The company will also implement improved technology on its websites that enables more ad interactivity in and around the video environment, enhancing both the client and user experience.  NBCU will continue to accept 30-second and longer spots for long-form video content.

Naylor on the significance: 

In the rapidly changing digital world, it’s essential for clients to deliver their messages in a way that best suits the medium. Research and client feedback tells us consumers can be negatively impacted by a spot that runs almost as long as the content itself.  This new standard for short-form video ads, coupled with the advances in our online technology offerings, will ensure our clients’ creative is showcased in a way that maximizes its engagement with our online audience.

NBC says the decision to implement the 15-second standard was made after evaluating industry feedback, including the results of a NBCU research study gauging user reaction to online video advertising:

In the study, respondents were served short form video content approximately two-minutes in length with either 15-second or 30-second ads attached. Those viewing clips with 30-second ads were more likely to say the ads were too long and made them want to stop watching the content.  Conversely, those watching the 15-second ads were more likely to say the length of the ads was appropriate for the viewing experience.  Males and younger respondents (under 30), in particular, were more likely to deem a 15-second ad just the right length vs. those viewing a 30-second ad.

I chatted with Naylor at the IAB Digtial Video Forum. NBC has a YouTube Channel; In light of NBC's joint filing with Viacom last Friday of a legal brief in support of a copyright infringement lawsuit against YouTube, however, I asked if NBC views YouTube as a "friend" or an "enemy."

YouTube the "frienemy" is a typical industry perspective, Naylor suggested. Moreover, "frienemies" are on all sides of the broadband video battle.

When (traditional media advertiser) Anheuser Busch launched Bud.tv, the New York Times headlined "This Web TV is for you, especially if you're a male aged 21-34," noting the move accelerated a push by the beer manufacturer into the business of providing program content:

Advertisers becoming content providers, a practice known as branded entertainment, is helping reshape how Madison Avenue peddles wares. It reflects an effort by marketers to regain some of the power they wielded from the 1930’s through the 1950’s, when they owned the radio and television shows they sponsored.

At “The Future of Online Advertising” AdTech panel last November, I heard Naylor undersocre that the entire advertiser-media-agency ecosystem has been turned topsy-turvy: 

Major corporations are creating content, NBC is asked to act as an advertising agency in leveraging assets…advertisers become content providers, we are becoming an agency…

Going forward, the (branded entertainment) Internet "will be equal to or better than television," believes Anthony Ponturo, VP, global media and sports marketing, Anheuser-Busch.

I joked with Naylor at the IAB Forum that perhaps NBC should start selling beer!

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