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
Branded Content Needs Measurement Strategy from Start

CHICAGO — Brands should development a measurement plan when embarking on branded content, says  Tom Weeks, SVP and Group Brand Director at SMG’s LiquidThread  in an interview with Beet.TV. Knowing what to count from the start can set expectations for branded content campaigns, especially when ...

image
Weather Company Pairs Marketers With Moods

CHICAGO — Weather often affects consumers’ moods, and that means it can impact purchase behavior, says DJ Reali, SVP MultiPlatform Sales at the Weather Company, in an interview with Beet.TV. As such, the Weather Company often looks to pair consumer data with weather conditions to deliver ...

image
Enhance the Experience, SMG’s Hoffman Advises for Branded Content

CHICAGO —  Placement on a site and or media channel is vital to ensuring branded content actually reaches consumers and can be viewed, says Jonathan Hoffman, President at ZeroDot/President Experience Design at Starcom MediaVest Group, in an interview with Beet.TV. In addition, brands should think ...

image
No More Ratecards? Sky’s West On Addressable Ad Pricing

LONDON — If every TV ad campaign can be individually targeted, what good is fixed ad pricing anymore? UK satellite and telco provider BSkyB, which this year launched its AdSmart addressable ad initiative, envisages a spectrum of prices for different advertisers. “The conversation has moved on ...

image
For News Video, Go Long: HuffPost Live’s Sekoff

For serious news video, forget Vine’s microscopic content, says the co-creator of Huffington Post’s live streaming video network, HuffPost Live. “The average video being watched on mobile devices is getting longer,”HuffPost live president and co-creator Roy Sekoff tells Beet.TV in ...

image
Branded Content Works Best for Awareness, Agency Execs Concur

CHICAGO — Branded content still plays best as a brand awareness tool, rather than as a direct sales driver, says Vincent Geraghty, EVP and Executive Director of Production at Leo Burnett, in a panel discussion for Beet.TV. “Purchase and sales is a tough thing. When you’re talking about ...

image
Video Not Ready For Programmatic Primetime: GroupM’s Wanck

Digital video won’t follow display down the “programmatic” ad-trading route until publishers are ready and willing, says one of GroupM’s digital division chiefs. “For video to truly become programmatic, the reach will have to increase, there needs to be more ...

image
Facebook Targeting A Boon for Marketers, Havas’ Social Lead

CHICAGO — Facebook is a marketer’s dream for video, but brands need to be smart about how to use the targeting, fan base, and types of video on the social network, says Len Kendall, Director of Social Marketing at Havas Worldwide, in an interview with Beet.TV. “Because of segmentation and ...

image
TouchCast Useful To More Than Just Publishers: Schonfeld

TouchCast, the interactive video platform co-founded by former TechCrunch editor Erick Schonfeld, wants advertisers to start using its new video format as an engaging new ad format. The startup counts broadcasters and newspapers amongst early adopters on the editorial side. “Their people on the ...

image
Brands and Distributors Should Look for Shared Goals in Branded Content

CHICAGO — When embarking on branded content, a marketer should consider what part of its story fits best in that format, Cristel Turner, Director of Brand Advertising, Strategy and Business Marketing at U.S. Cellular, in an interview with Beet.TV. “What doesn’t lend itself as easily to a ...

image
Ziff Davis Enjoying ‘Renaissance’: CEO Shah

When Vivek Shah took over at the helm of PCMag.com publisher Ziff Davis, the company was still recovering after emerging from Chapter 11 bankruptcy protection, continuing to sell off properties. If he says so himself, Ziff Davis under Shah may has turned a corner. “Ziff is probably one of the more ...

image
Comcast Sees Big Growth in C3 VOD Viewing

While TV Everywhere tends to dominates the chatter about non-linear viewing, many cablers are actively marketing and delivering viewers for their existing VOD services. Comcast, for instance, logged its 30 billionth program viewed on demand in the last year and has seen 100% growth in time spent viewing in ...

loader