Denise and I just returned from a “breakthrough” media conference and probably the one thing that struck me as not breakthrough were some of the mega-digital ad network purveyors pushing the fact that “video’s going to be huge on the web!” No kidding, dude? Up on a big screen, a clichéd Euro-produced TV spot for a US brand car rolls, everyone in the audience is drooling, and the speaker goes on about expandables and rich media and video production facilities and bla bla bla.
What’s breakthrough about that? It’s Broadcast Media part deux. And these guys, who probably used to make millions selling TV and radio flights are now putting together more digital ad networks and selling their magic again. And sure, if you produce a super-beautiful-expensive-sexy spot featuring a leggy chick and a cop (I’d seen the same concept 30 times before), you too can get these really great engagement rates, like, 4%! Yeah, that beats your standard display banner, and you can click on the banner and it’ll send more groovy footage to your smart phone, but so what? It’s old school. It’s one way. It’s not the be all and end all. 96% won’t be engaged by it. And can you estimate its ROI?
Social Media engages the viewer in a two-way conversation. It’s not about a one-way, 1 million Euro-produced TV spot and a huge network buy. And if you do it right, you have measurable metrics that you can track directly back to your campaign. And it’s affordable in a recession-driven economy. Don’t get me wrong—I’m a creative director and for the most part, we consider big film or video shoots as perks rather than work. But I’ve seen the writing on the wall (as have, unfortunately, many production companies) and it isn’t the high six or seven-figure shoot and buy.
Microsoft has recently made its 1 vs 100 game available in beta form as of June 1st, 2009. This is a community based trivia game based on NBC’s television show that ended back in 2008. Microsoft built this game with some strong attributes in mind: Fun, Friendly, Challenging & Rewarding. Seems like a common sense approach, right? Not many developers can achieve this successful mixture, Microsoft managed to do it while integrating an effective advertising platform. Interspersed within the “Live” game show are a series of branded ads and video ads during breaks. Currently Sprint and Honda appear to be the largest advertisers involved with 1 vs 100. Both advertisers have reportedly paid approximately $1 million to be sponsors for Season One of 1 vs 100. So, how does this all work?
As part of a large Microsoft Xbox Live! update awhile back, users were able to create their own custom Avatars (similar to the Mii characters on Nintendo Wii). These user-generated Avatars become the visual representation of players in 1 vs 100. Your character waits in the game lobby for the “show” to begin at its scheduled time. This game lobby is one of the first opportunities for advertiser sponsorships using branded banners in the background. Once the game begins, “The One” is selected based on previous successes and they are pitted against “The Mob”. The goal of the Xbox Live game is to eliminate “The Mob” when you are “The One” in order to secure the best possible reward. If “The One” is defeated, the remaining members of “The Mob” split smaller prizes. The primary reward is Microsoft Points which can be used to purchase arcade games, game content, movies, music videos, or even full games. Additional contests and giveaways are also planned for 1 vs 100, incentivizing players to bring their A-game. Trivia questions come at players fast, timing plays a large part in obtaining better scores. Answering questions quickly, accurately and consecutively improves your overall score and gives users a better chance at becoming “The One” in future episodes. There are many specific rules and game types beyond this basic explanation.
As Microsoft continues to refine 1 vs 100, the audience will surely expand. The current member base on Xbox Live has recently surpassed 20 million active users. The large pool of engaged Xbox Live users combined with the popularity of 1 vs 100 provides advertisers with a strong platform. In 1 vs 100 you can’t fast forward through commercials, the static brand placements are subtle and contestants can’t pause the game to grab a slice of pizza. Contestants pay very close attention to win the valuable prizes which leads to fierce competition and the advertisements are certainly effective thanks to the attentive crowd. My personal experience with 1 vs 100 is that the ads were exclusively a branding tool, no interaction, no conversion events and not much to track outside of viewership and exposure levels. If Microsoft can refine this ad platform during Season Two so that users can interact with the ads, but not interrupt their game, it will take the promotional element to a whole new level. Behavioral data and user demographics are more than likely being recorded through Xbox Live. Adding an element of geo-targeting could really make these ads pop as well. Order a pizza from your couch in the middle of 1 vs 100, submit your contact information to a local car dealership for special pricing/test drive, request free product samples, early game demo access or even sneak previews of exclusive movie trailers all via in-game ads are just a handful of possibilities that Microsoft could leverage with this successful & innovative “gamevertising” platform.
I consider myself a gadget geek… maybe even a gadget freak… an early adopter out on the bleeding edge of technology. The latest addition to my wired/wireless home is a Mac Mini connected to my living room TV running Boxee.
For the uninitiated, Boxee is an open-source media center software package that aggregates video from local and internet sources into a very intuitive interface for play “on demand”. It has changed the way I watch any form of video programming from network to movies to online.
Using Boxee for the last few months really got me thinking about the future of TV, video, and advertising. I believe that it is only a matter of time before most programming is “on demand”. Many people already have DVRs and record their programs so they can fast forward through the commercials. Hulu has entered the marketplace and you can view all kinds of shows from NBC, Fox, and Disney with some commercial interruption in the form of a pre-roll sponsorship ad and a few ads dropped in here and there.
Some other online “networks” are popping up with other advertising models. One of my favorites is Revision3 which includes shows like the Digg Reel and Scam School. Their model is in the form of direct sponsorship of shows and episodes by brands like Netflix and Adidas.
I am wondering if we are already witnessing the loss of relevance of the major media networks and the death of the TV pilot or 12 episode deal? Will the future look more like producers of shows publishing content to internet-based channels and media centers like Boxee that allow users, through social media features, to decide what is popular and what rises to the top? Then, as a show becomes popular, will the producers directly share in any advertising revenue that it generates?
I really feel we are at the beginning of a radcial shift in how we watch programming and that it is only a matter of time that the network/local affiliate model of broadcast television begins to decay and lose relevance like print media.
While others have seen online ad revenues slide, online gaming sites (not to be confused with online gambling sites) saw display advertising views spike 29% in November from a year earlier, according to a report released this morning by research firm ComScore.