Vijay Anand | The Startup Guy.

The Buzzing of the Ad and the Television World.

Posted on: December 3, 2007

‘Brand Equity’ seems to be a much spoken word these days. As per a recent report by the Economic times, India is the third largest economy when it comes to the advertisement industry, pushing China to become the fourth in time of scale and the cash-flow that is pouring in into that segment of the industry.

While at one end that is going on, people are looking at new ways of monetizing and revolutionizing this market. Whenever there is more cash than there is space to move, this always happens.

There are a couple of very interesting things happening:

1. Television is moving to the Internet.
This is a no-brainer. I guess with the success of Youtube and Homevideos and how even the common man seems to understand the concept of “The Long tail“, this is the most talked about subject.

What is to be noted is the difference between internet videos and internet television (or IPTV). It is simply not the same. While one is a web level aggregation of different videos, the other is using the internet as a medium to deliver high quality content, in a way that the web can afford to – multi-casting, at the same time unicasting. That’s when terms like microchunking, RSS Video feeds, personalization and Video on the go (with technologies such as slingbox) comes into play.

We’ve barely scratched the surface here.

2. Ads are taking on a new momentum.

Firebrand. Indibiz.tv
Two web based commercial channels. I mean, channels which show nothing more than commercials, but of course you get the pick of what advertisement you want to watch and when. Welcome to the world of asynchronous broadcasting. With the recent trend in advertisement directors outwitting the regular programming directors in terms of quality and content, this is said to be a new trend that is setting the stage.

Infact, Firebrand is being pulled together by the same guy who came up with the concept of MTV, back in the days when playing music videos were meant to be “nothing more than commercials for the bands who played the music”. Perhaps they aren’t that different.

3. Place-shifting technologies will flatten the media space.
Imagine being able to cross the boundaries of those that are defined by the broadcasting companies and being able to watch anything from across the world, when you want to see it. That’s simply amazing. This will be the driver in terms of pushing media to the web and in making IPTV a reality.

4. Watch only what you want.
Pure Youtube style. Different channels, which know your personalized settings and will only show you what you want to see. Even if I tune into BBC, If i am only interested in sports related news, I would be able to watch just that, and not need to listen to the quibber of anything else which might not be of my fancy.

5. Alternate Revenue models
I am not too sure if the Youtube model is going to sustain itself. Google is converting that as a aggregation point for bigger broadcasters to push their own content in the internet medium. But if the home videos that made Youtube what it is, is to continue, then the content aggregators need to come up with ways to monetize the content on behalf of the publishers and share the profits. Companies such as Nautanki and also Indiainteracts are looking into that. They are going about doing that by means of advertisement and also by placing relevant advertisements before or after the video. Perhaps this is where contextual video ads will find its way… in its best form.

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