November 2, 2006

At a time when Web marketers and content writers and publishers zoom into Internet video, users get a thumbs-down reaction to the most popular form of integrating various brands into the experience: in-stream video commercials.

Overall, more than eight out of ten Internet users interviewed by Forrester Research called in-stream video ads "annoying" and three-quarters of them said they completely ignore them.

On the other hand, these same users said less-intrusive advertising, such as placements alongside video, is more palatable: about half of respondents deemed those as acceptable.

Text links are the Internet ad format most preferred by consumers, according to Forrester research, with 19 percent still finding them annoying.

User resistance to more intrusive forms of video advertising presents brand advertisers with a dilemma, said Forrester Research analyst Brian Haven, since sight, sound and motion are typically the best way to convey an emotional message.

However, at least so far, advertisers have used Internet video mostly as a way to extend the reach of their 30-second spot-driven TV campaigns.

"Internet marketers need to think differently about how they're communicating with their customers viewing online video, Haven said. While most video sites have relied on pre-roll ads, some have avoided them altogether.

YouTube is still banking on user-initiated video spots to anchor its ad model, while its new owner, Google, is pushing its click-to-play spots, also user-initiated.

"When you look at what's going on with YouTube and short-form content, using the old mode of inserting ads into content when you're looking at a 3-minute video, isn't going to work as well," Haven said.

More and more advertisers today will need to follow the lead of brands like Nike, which has created broadband content consumers elect to watch, Haven said.

Haven also expects Internet advertisers to tap user-generated video more frequently for its authenticity.

Source: AdWeek