Day Two of the Cannes Lions International Advertising Festival 2010 took off from where it had ended on Sunday – with the focus on digital. The first session, ‘From Hollywood to Madison Avenue: A Tale About Fundamental Changes in Advertising’ talked about why online video advertising was superior to traditional advertising on the net.
Online video advertising, according to Jimmy Maymann, Chairman, GoViral (Europe based branded content distributors), has two major advantages for brands: it can be distributed anywhere on the web and it has an amazing capacity for telling stories and engageing users.
Maymann talked about in detail the three revenue models for online videos: 'the sponsored model', 'the branded content model' and 'the product model'. For the 'sponsored model', he gave an example of Sony Ericsson, which tied up with a popular local festival in Denmark to promote bands. In all 68 videos of various bands playing were produced, which were subsequently posted on the internet. “Sony Ericsson while got access to the festival, people got access to music,” Maymann said.
In the 'branded content model', Maymann said, the brand is the hero but sits in the background. He gave an example of a viral produced by Google for its browser, Chrome's speed test. It took 51 different takes to get a fired through a slicer at the moment AllRecipes.com loaded on to the screen.
In the 'product model', the focus is lot on the product and it's the star, said Maymann. One of the examples he pointed out was the online video of Apple's iPad, telling about the features and the usability of the product.
He also said that it was time that agencies should worry as much of the content and media control was getting shifted to other avenues. The content for advertising, till about 2000, was just in the control of advertising agencies. But now it's being controlled by not only advertising agencies but entertainment companies, production companies, media companies and off-course user-generated. Even media buying agencies too have lost control. There are newer players like Google, Yahoo, MSN and AOL, which have broken their monopoly. Even the audience, Maymann said, has changed. Earlier, it comprised broadcasters, networks and newsgroups. Now it forms of publishers, ad networks, bloggers and social networks.
Also, during the session was presented a case study by Daniell Goodall, Marketing Planner, Nokia, Helsinki, who talked about the various online videos Nokia was creating. He said that online videos were moving from being tactical to strategic. There were three types of media being produced – owned media, paid media and earned media, Goodall pointed out. As for owned media, Nokia had an editorial board and which reviewed every week what type of content should go online. As for the last, the earned media, it is all about content generated by the users.
Goodall also warned marketers that “Youtube can be a negative space as far as some frustrated teenagers are concerned. So you have to be careful with the kind of opinions you get.”