Online video advertising is starting to be a major factor in the Hispanic online advertising market. While last year, online advertising amounted to between 5% and 10% of major portals ad revenue, this proportion is bound to grow in 2009.
One important reason is that broadcast giants Telemundo and Univision (see recent article: Taking the Telenovela Online with Interactive & Mobile Components) are repurposing a lot of their broadcast content and repurposing as online video. Other players are setting up agreements with Film Libraries. Socialnetworking website QuePasa.com for instance is currently working out a deal with a major studio. Last year, Terra locked down Mobile and Online Video Rights for 2010 and 2012 Olympics.
While online banner advertising usually attracts CPMs (cost per thousand impressions) of $8-$10 online video advertising can attract CPMs in the mid teens.
The way these ads are inserted is through pre-roll advertising. Meaning the user who wants to watch a particular video gets to see the video ad before he can enjoy his selection. Movie Advertising lends itself well for video ads. Universal Studios, an account held by Lopez Negrete´s Burbank, CA, office often uses the online video vehicle to advertise its new releases, says Juan Alduncin, an ad-sales executive who sells online advertising for major portals, including QuePasa.com. Universal Studios has advertised movies which it deems have a strong Hispanic audience, including “Fast and Furious” through major portals and social networking sites including QuePasa.
Complement to Traditional Advertising
Online video ads offer a great way to target commercials to a specific audience.
Utarget.FOX recently released results of a study that found that online pre-roll advertising works in tandem with television campaigns to extend the reach among those in homes with broadband. While the study focused on U.K. brands, Hernan Lopez, president of .FOX Networks and COO of FOX International Channels, said Utarget.FOX would likely see the same results from running the study in any one of the 18 countries it operates in, including the Hispanic market in the U.S.
"If you don't sublimate your television campaign with online video, you will reach less people who have broadband," Lopez said. "I'm not advocating taking money from television campaigns and allocating it to online, but brands can use traditional and online television synergistically."