Written by Jay Fortner and edited by Richard MacManus
The New York Times has an
interesting report about companies that offer customized video advertising, such as
Spot Runner and Visible World. Marketers are excited
about this technology, because it means they can utilize demographics to deliver targeted
advertising across several platforms - including television and the Internet. It's also
less expense than traditional TV advertising and in some cases means they can route
around traditional ad agencies, by creating the ads themselves using the tools offered by
services like Spot Runner and Visible World.
So what does this all mean for the advertising world, the media industry and the ever expanding Internet?
Not only is it becoming far cheaper to produce video ads, it is also becoming cheaper to distribute and customize them. This effectively is making videos easily stored and re-used, much like digital photos and music have become in recent years. It removes a large chunk of production costs, as marketers no longer have to film the commercial themselves - Spot Runner allows you to mash-up an ad from their ad library. It also allows the creator of the content to reap the rewards for each customer that chooses their ad.

Spot Runner
With the technology offered by Spot Runner and Visible World, a commercial can be edited with voiceovers and text. Other imaging can be also added, or existing imaging modified. This all allows for minimal human interaction (with video production companies etc), fast changes, and remote control over an entire ad campaign. It means that a commercial can easily have many different versions and be distributed to specific demographics, depending on graphical location, gender, and other variables.
This simplified process of targeted advertising is ideal for small companies that want to appear big, and for big companies that want to appear small. In that sense, the world becomes a little flatter. Small businesses can operate within their budget to get a professional ad; while large companies can tailor their ads to appeal to consumers across the board, varying the product they sell or the spin their ad takes.
The format of these commercials makes them easily spread via television, or the internet - and I'm sure mobile devices aren't too far behind in becoming another mainstream platform for distribution.

A Ford commercial from Visible World
Services offered by companies such as Spot Runner and Visible World cater to a broad base of marketers, and create a platform for creativity and replicated data. The ability to operate over the Web makes editorial accessibility an afterthought and increases the number of niche markets an advertiser can display their product for. The media world has departed from so many traditional models; and the Internet has enabled the majority of those changes. Now the world of video marketing is following suit, catering to the long tail of social networks and specific demographics - fragmenting themselves in the same manner.
Essentially this allows marketers to take advantage of targeted marketing in ways they've always dreamed of.
What's the larger picture here? And what does it really mean for marketers to not only gain increased access to demographic data, but to use it for more and more targeted advertising?
Privacy issues are and will continue to be raised regarding the use of targeted marketing. Much of our activity on the web, and even with our television's remote control, gives companies data to feed their advertising strategies. Also the advertising job market will shift in reaction to the oncoming automation options, which are becoming more available to marketers.
The Internet and mobile devices will become extremely important for the future of this type of advertising. It will also become integrated within the widening Internet video culture, and probably closely associated with user-generated content. This means consumers may have a larger role in the distribution of these commercials; perhaps customizing ads to be played along with their own videos, even becoming the most powerful channel by which these commercials are distributed.
What are your thoughts on customized video ads -- are we in the midst of a sea change in video advertising, enabled by Web services like Spot Runner and Visible World?
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Fascinating technologies. As a small business owner, I would definitely be interested in using such a service.
I agree, the technology is fascinating, but I would caution before placing media buys through Spot Runner. The creative is of great quality but you don’t own the commercial. In essence you’re leasing the creative for $499. I’d rather pay a bit more and have a full 30 second commercial (not a donut) that I own. Their automated media planning tool makes terrible recommendations. Play around and see for yourself. Don’t get me wrong, the SP model is here to stay but you it needs serious fine tuning.
As a small business owner with a small advertising budget, I need to make everything go the distance. If I go to the cable company directly, not only do I get the standard 15% agency commission (which SP doesn’t kick back), but I also secure better rates. Again, if you don’t believe me, call your local cable provider and compare their rates vs. Spot Runner’s. You’ll see just how overpriced Spot Runner is.
Bottom line is that the automated model is the way of the future, but my business is here today and I can’t afford to overspend because if I do, it won’t be around in the future.
This technology sounds fascinating. I like the view that you can target specific demographics. This is will help out with pursuing a market that you might not be able to target on a grander scale. You are now able to appeal to certain communities and really get in touch with them. I'd like to see this technology pan out.
Google's contextual advertising has proved incredibly popular with the 'long tail', and I believe these types of services have the potential to do exactly the same. There are many thousands of small/medium sized businesses who would love to use video advertising to reach their market.
The two stumbling blocks in the past have been the cost of professional video creative and the ability to ensure the right people see it - both of these problems are close to being solved.
We have some interesting ideas in this market too...