Old media battles online companies for digital ad spending
TV producers and advertisers are raising the financial stakes as online viewership rises. What’s being sold and bought at the Digital Content New Fronts event?
The “Digital Content New Fronts” are sort of like a big fair, where producers of online video meet advertisers to try to lock in advertising dollars for upcoming features. Google, which is raising the curtain on its new YouTube content and ad pricing tonight, is a familiar participant.
But there are some unexpected newcomers to the New Fronts as digital media advertising grows. Magazine publisher Condé Nast is one of the new big names rolling out a suite of original video content.
“We look at digital video as now another platform on which we’ll build audience on, another extension for the Condé Nast brand to reach consumers,” says Fred Santarpia, Chief Digital Officer for Conde Nast Entertainment Group.
Elevator Makeover (Glamour): A weekly series in which one woman gets a hair and beauty makeover in the time it takes her to ride the elevator from the ground floor to the top.
Publishing companies in particular, with all their content production machinery, are entering this world.
The Wall Street Journal unveiled its video line up on Monday -- including a reality show featuring startup entrepreneurs. Nina Lawrence, vice president of global marketing for advertising sales at the Journal, says this is part of an attempt to break free from the declining fortunes of print media.
“While most print based companies are either stalling or retrenching, we are aggressively moving forward into everything new,” she says.
According to digital marketing and consulting firm eMarketer, advertisers spent $4 billion on online video ads in 2012.
“Video still commands high ad rates compared to other banner ads online,” says Clark Fredricksen, a vice president at eMarketer, “so it’s a good revenue opportunity.”
He says he expects video advertising revenue to grow by more than 40 percent this year. Still, online video advertising pales in comparison to TV, which he says raked in $64 billion in ad revenue last year.
Car Collectors (GQ): In this web series, car collectors, such as comedian Adam Carolla, show off their lot and latest auto obsessions.