Madison Avenue’s Frustration with Online Video: Quality is “Complete Crap,” top WPP Exec

By on 11/06/2009 6:46 AM @beet_tv

Despite the commanding position of YouTube, with 40 percent of video streams in the U.S., the quality of the environment for advertisers is not always acceptable, according to leading digital advertising executives.

Rob Norman, CEO of WPP’s giant GroupM Interaction, the digital media buying group, says that despite the availability of high quality video ads to go up on the Web, the technical quality and environment of sites like YouTube is not acceptable. He says the current environment is “complete crap.”  (His comments come at the end of this clip.)

GroupM says it is the world’s largest media buying company, with billings of $60 billion.

Ogilvy’s Robert Davis and Digitas’ John McCarus discuss the value of YouTube as a powerful distribution platform with value and limitations.

YouTube has recently increased the number of pre-roll ads and has expanded its relationship with many ad agencies.

This is an excerpt from last month’s Beet.TV Online Video Roundtable held at the New York offfices of msnbc.com. 

Moderating this section is Michael Learmonth, reporter for Advertising Age.  Michael recently reported how consumer package goods are using online video advertising in a big way.

Andy Plesser, Executive Producer

Video Transcript

Michael Learmonth:  Eric Smith said yesterday or the day before that YouTube is now doing business with 90 of the top 100 AdAge, top advertisers. What are your clients saying about YouTube? What, if anything, are they doing on YouTube, and do you think YouTube has figured out the scalable model that’s going to work for them?

John McCarus: 
Well, I would say for Digitas and the Third Act, which is our brand content platform, that we’re very much working with YouTube as a distribution partner. I think one of the challenges is they spent some time trying to dabble in the content business and I’m not so sure if that’s an area where they can see a lot of sucess.

Michael Learmonth:
  Well, they had one big go with that, right? And they said they were going to do more and it just didn’t happen.

John McCarus:  Yeah, and look, they’re a terrific distribution network and a terrific technology platform and what we have to remember on the web is that, unlike in broadcast television, we have the opportunity and challenge for packaging all of this ourselves as clients and advertisers. It is, with the right thinking, successful and many times the best solution. So we are putting YouTube together with the right content solutions and have actually some big programs that will be announced shortly.

Robert Davis:  Yeah, I think, you know, not to comment on their business model, that’s whatever they try to do, they try to do, right? Now, it’s essential. They own so much of the market that it’s essential for clients to be there, to be well represented. Are they the end-all, be-all? No, but they own 40% of the views, so you deal with them and then you deal with the other 60% as you can.

What I see as I look around at YouTube though, is that it’s not being used to its fullest extent. I’m amazed at the poor quality of video that’s being posted. And that’s not YouTube’s fault, that’s the fault of the people putting up the video…

Michael Learmonth:  Well it’s their fault that they don’t surface the good stuff, right?

Robert Davis:  Well no, just even technical quality, forget even content. I’m just looking at it, going, “If somebody put that on TV looking that way, they’d be fired.” Why is it acceptable? Full gamut. Why is that acceptable online? So I think there’s things that we, as an industry, need to start realizing that YouTube is probably more powerful than we’re making itself.

Rob Norman:  So it’s maybe ironic when you look at YouTube, and we’ve now got this host of HD delivery systems. If you actually looked up, it’s possible that today is lower proportion of all video that’s consumed is consumed at the highest possible quality that was available than ever before. Because, although we’ve got HD and we’ve got a whole load of ads in HD, we’ve also got millions and millions of pieces of video being consumed in a customer delivery quality that’s complete crap. It’s kind of interesting.

Recent Videos
image
Header Bidding Rears Its Head With Yield And Cost: OpenX’s Saifee

PALM SPRING — Look out; there’s a new piece of ad-tech lingo on the block. So-called “header bidding” has emerged as “one of the primary drivers of growth in programmatic for publishers over the last year”, according to OpenX monetization VP Qasim Saifee. So what is it? ...

image
Nielsen Onboarding TAM As Measurement Wars Heat Up

PALM SPRINGS – After comScore’s merger with Rentrak to combine multi-platform media measurement, it’s over to you, Nielsen. Ad agency Group M chairman Irwin Gotlieb last year told Beet.TV media measurement is broken because measurers are using the wrong yardstick in the multi-screen era. ...

image
Deloitte Gets In To TV Tech Tools Game: Ledger

LAS VEGAS — These days, it seems it is no longer enough for a consulting firm to just offering consulting advice – you have to back it up with implementation, too. That’s what Deloitte is doing by partnering with three software providers to wrap up their offerings as one of its own, the ...

image
Programmatic Ad Rates Will Be Higher Than Direct: Meredith’s Schenck

When programmatic ad trading entered the marketplace in the form of real-time buying from open online ad networks, many publishers feared it would devalue their inventory. But, slowly, publishers have begun to exert controls to keep pricing higher than that. Now rates could rise higher again, one exec ...

image
One Screen Good, All Screens Better: Bloomberg’s Caine

PALM SPRINGS — Bloomberg appears to have been undergoing a renaissance lately, with a line-up of strong products and a solid identity running across its many media outposts. In the latest new advertising tie-up, Bloomberg Media has sold a sponsorship for the green room, during its new Bloomberg Go ...

image
Hearst Reaches Maturity With Programmatic: Parker

Time was, newspaper folk sneered with apprehension at the rise of programmatic methods of digital ad trading, fearing automation in real-time open markets would devalue their ad inventory. But times have changed, and those publishers which have dipped their toe in the water are finding growing returns on ...

image
As Merger Closes, Rentrak & comScore Push ‘New Model’ For Media Measurement

PALM SPRINGS — The merger of media measurement houses comScore and Rentrak just completed, heralding what the pair say is a new era in consumer tracking for brands and publishers. According to comScore, the new entity can now see 260 million desktop screens 160 million mobile phone screens 95 million ...

Screen Shot 2016-02-01 at 12.05.34 AM
Turn’s New CEO On Video And The ‘Three-Legged Stool’

PALM SPRINGS — The world of advertising demand-side platforms is so new, most people may only have dealt with one or two. Bruce Falck says he has worked for five. Falck spent just four months as Brightroll’s COO until Yahoo acquired the company, last year joining Turn, the ad tech platform which ...

image
Sourcepoint Barokas’ Melds Ad Transactions To Beat Blockers

If you believe some of the market research about the prevalence of consumer ad blocking, the sky is falling on a publishing industry that has long depended on advertising. Those surveys may or may not be wholly accurate, but Ben Barokas is intent on solving the problem. Whilst working as general manager of ...

image
Genesis Media Figures Out Out-Stream: CEO Yackanich

LAS VEGAS — When should you put an in-article video ad on a page – and when should you hold back? Two-year-old Genesis Media of New York is an ad tech platform aiming to sensitively place auto-playing out-stream video ads, a format that is gaining in popularity. “Video ad formats are easy ...

image
Adobe’s TVMM Is First OTT TV SSP: Videology’s Gaskamp

LAS VEGAS — Back in December, Adobe updated its Primetime ad platform with TV-buying capability, dubbed TV Media Management (TVMM), powered partly by Videology. The feature aims to let broadcasters plan and package up ad slots in their over-the-top (OTT) offerings. So, what is the big idea? ...

image
Netflix Could Make $8bn From Ads: Analyst Broughton

LONDON — What if Netflix started running ads? It is a topic that has previously been debated here on Beet.TV, with one exec betting: “They’re going to have to start to deploy some type of advertising model to recoup some of the revenue that they’re spending on this programming.” A new ...

loader