Video advertising one of the most attractive advertising prospects on the internet right now, driving 2.5 times more conversions than standard web banners according to research by YuMe. However, when you consider the process of selling and delivering those ads, few best practices exist for this kind of advertising; and when you couple that with the fact many Multi-Channel Networks (MCNs) have inexperienced sales staff managing their accounts, it’s a recipe for uncertainty in a market already subject to intense economic pressures. It’s a real wild west out there.
Now the leading MCNs on YouTube are leading the charge to establish order by launching a trade body to make sure the ‘business’ of new media can stay sustainable for years to come.
The nonprofit body, called the Global Online Video Association (or, GOVA), will represent nine MCNs at launch: Maker Studios, Fullscreen, Big Frame, Collective Digital Studios, BroadbandTV, Discovery Digital Networks, DECA, MiTu Netowks, and Magnet Media.
The aim: to promote the “business interests” of its members at large.
GOVA’s founding members have an incredible influence on both the content and the business side of online video. When combined, they represent over 10 billion views of both original and partnered video content every month, primarily on YouTube. While GOVA promises to offer general business assistance to its members, make no mistake the organization’s primary purpose is to leverage their collective influence on the industry, and to give its members a unified voice to make sure their interests are being heard.
That voice will be led by Collective Digital Studios’ SVP of Strategy and Sales, former chairman of the International Academy of Web Television (IAWTV), and long-time advocate for New Media Paul Kontonis.
It should come as no surprise that advertising will also be a key focus of the organization. Faced with lower CPMs and increasing pressure on the value proposition of their inventory, GOVA hopes to raise awareness of its member’s individual brands and high-value original series’. GOVA also hopes to establish more suitable industry terminology and measurement standards; something that the IAB had lagged behind on until very recently.
This is a really interesting move and though I have my doubts about the effectiveness and intentions of such an organization, Paul Kontonis’ leadership is proven in the industry and I trust he has great things planned for GOVA members.