Letter: Major rumblings for pre-roll online video advertising

News last week of NBC Universal and News Corp planning a rival to YouTube provided further evidence of the rapid emergence of online video advertising.  The planned site is set to rely upon social media networks, such as MySpace, for distribution of hit shows such as 24 and House of Heroes.  This will rely on users taking video content from the NBC Universal and News Corp site and sharing with family and friends. And how will it be monetised?  Well, much like on traditional TV, with relevant advertising being slotted neatly around video content.  Step in pre-roll online video advertising. 

Pre-roll offers the perfect device for advertising to be linked to online video content.  Far more powerful than surrounding banner ads or links, pre-roll enables immersive brand experience.  And a natural mechanic for audiences used to their latest episode of 24 being interjected with relevant advertisements in exchange for free viewing. 

This news follows the recent revelation that video content on the Joost network will also be broken up with relevant advertising content.  We are very quickly moving towards a realisation that advertising methods online can match the reach and visual impact of TV.  Combine this with the targeting and interaction of online and a hugely powerful advertising medium emerges.  NBC Universal and News Corp recognise this and are making strong moves to make it a reality.  Many others will follow suit. 

David Michael
Strategy Director
Utarget Networks