Interviews with Digital Media Thought Leaders

Effective Ads for Long-Form Internet Video

Podcast Audio | Posted by Phil Leigh on June 16, 2009

Standard Podcast [23:13m]: Play Now | Play in Popup | Download

Jim Louderback, CEO, Revision3

If you would like learn about the types of advertisements that are effectively generating revenue for long-form video on the Internet, this interview is for you.

Our guest today is Jim Louderback who is the CEO of Revision3.com. His company is an Internet television network that creates, produces and distributes web television shows on niche topics. Some shows have achieved audience numbers equivalent to popular cult-TV shows. One example is DIGGnation in which two hosts discuss the top weeky topics on the Digg website. It gets about 200,000 – 300,000 viewers which is equivalent to the TV audience for Dog the Bounty Hunter.

Just like a regular TV network, Revision3 is dependent upon advertising as the primary revenue source. One reason for interviewing Jim was to gain insight into the kinds of ads that will work in an interactive environment.
Revision3 uses all types of ads including video-rolls, overlays, sponsorships, and banners. Sponsorships have been particularly effective. For example, the hosts of DIGGnation typically discuss the sponsor’s products during the show. The objective is to have a deeper “conversation” with the audience about the sponsoring brands. Ordinarily the “conversations” result in a direct or implied endorsement.

The approach is actually an echo of a method effectively used on television 50 – 55 years ago. Shows such as Schlitz Playhouse 90 and The General Electric Theater had single sponsors that wanted parallel identity with the programs. For example, both put their names in the title and General Electric used a consistent host who for eight years was Ronald Reagan.

As noted in our “Third Generation Television” research report released in February, long-form video will inexorably migrate to the Internet. Furthermore, consumers will exhibit a decided preference for free viewing from ad-supported websites and podcasts. As a result, it is crucial that Internet Video ads generate enough revenue to adequately compensate the program producers.

To learn more about the “Third Generation Television” report click here where you can purchase a copy or download a free Prospectus.