Friday, October 29, 2010

Videolytics? How about Createonomics?

Kantar Video, a unit of Kantar, has come up with a new real-time tracking and measurement tool. They’re calling it Videolytics.

Recently, VivaKi came up with a new digital ad tool as well. They’re calling it ASq.

It seems that the success of any new digital ad tool requires a strange name. Maybe there’s a direct correlation between the strangeness of the name and the success of the tool.

If so, then I’m proposing Createonomics as the name for the new way in which advertisers will need to justify the cost of creating commercials.

As posted yesterday, TubeMogul has confirmed what all of us already knew. Pre-roll ads don’t scale online.

Without scale, it’s difficult to justify the high cost of creating great commercials. The current economic model of production is based on large audience size and repeat exposures. Neither of which are proving to be prevelant on the digital platform.

A new economic model for content creation needs to be developed. This model will be based on the amount of engagement, measured as time spent, that the commercial delivers to the advertiser.

It will be a performance-based model, where the performance that is valued and paid for will be how long people stay engaged with the brand, rather than how many are exposed to it.

The reason?

Engagement scales on the digital platform. Exposures don’t.

Createonomics will require a new way of thinking about how advertisers buy, pay for and create great advertising when the number of exposures is lower.

We have a few ideas as to how this can be done.

We’d be interested in hearing yours.

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