One of the most publicised social networks, YouTube was born out of the desire of friends to share their videos amongst themselves. This chapter investigates the opportunities available when advertisers embrace social networks.

Introduction

Social networks are growing on the internet, with the main focus on the communication or exchange of information between the members. This works through various channels like email, instant messages or forum and profile entries.

Due to strong broadband growth most social communities are now integrating video for their users too. Low budget productions done with webcams, mobiles or digital cameras can be published quickly and made available immediately.

The video option can be used for sharing video files with everybody on the internet, as seen with YouTube. On sites like Jubii.com users can also opt to share videos privately with friends or chosen users. It’s now even possible for anyone to stream live events to one person, or to thousands. Online video sharing has become as easy as sending an email.

Growth

The data traffic of open user-generated content (UGC) video platforms is doubling every 6-9 months. The sites are heavily used as videos can be distributed and downloaded using the existing communication tools like email or instant messaging. Top lists help users to see quickly the newest, most clicked, or most recommended videos.

Content owners need to choose the format for the distributed content. Flash has overtaken Windows Media, Real and Quicktime and is by far the most used content format for UGC. With nearly 98% reach in Europe and America nearly every user on the internet can see Flash video content. Other proprietary players get only a little market share.

Advertising is key to monetisation of UGC platforms

By and large, most social networks are monetised through advertising. Advertising can be produced with standard banner formats and video ads placed in banner placement. The premium model of offering advanced or upgraded services for a fee will not work in 85% of the market due to a variety of similar communities that offer these for free.

However, more and more content providers offer in-video ads. Like on a normal TV programme the ads are displayed before (pre-roll), during (interstitial) or after a video content file (post-roll). It is very important to
make sure that the video content of the advertising is relevant to the content of the video it adjoins. These video ads are accepted by the users and are proven to perform in terms of branding and recall.

Quality of video ads affects the campaign performance

The internet is a ‘lean-in’ medium; the user sits close, intently focused on the screen. Ads will be perceived immediately and without loss of concentration if we apply some golden rules for in-stream advertising on UGC platforms. To ensure that the user is not annoyed by the video ads you need to find a good balance between content and advertising air time. It is recommended to have a video play time of 8 to 12 seconds and, as mentioned earlier in this handbook, should not exceed 15 seconds for a 1-3 minute content file.

The quality of the video ad needs to be maintained as well. Badly streamed ads will be displayed in a blurry way and will probably have a negative effect on the campaign performance and, as a consequence, the perception of your brand. Instead of simply using existing offline TV ads, advertisers are encouraged to try to produce ads specifically for use online to maximize their effectiveness.

Increase impact by setting reminders

A video ad can be accompanied by a complimentary banner ad which will be delivered at the same time next to the video player. The banner acts as supplementary exposure to the advertising message and can continue to be shown during the main video the viewer selected to watch. This prolongs exposure, retains a reminder of the product and offers an opportunity for a link to the advertiser’s site.

UGC platforms are great for new video ad concepts

UGC platforms are a great playground for new creative concepts in video advertising: e.g. entertaining video ads can have an immediate viral effect; the ads can be discussed and commented on and the message forwarded by the active community. This provides an opportunity for ad campaigns to be easily pre-tested due to the fast feedback channel.