Sunday, June 03, 2007

Mark Cuban Says Advertisers Have Leverage In Pricing Ads For Video - Really?

In his latest blog post, Mark Cuban takes a look at the impact that Nielsen's release of commercial data has had on the discussion of how ads in videos should be priced.

He says "So riddle me this. If the Internet is the ultimate DVR for video, will advertisers put comparable pricing parameters on internet video that they are trying to put on TV DVR commercial viewing ? If they do, and only pay for videos viewed within 3 days of the video being posted, won't that put a huge crimp in the internet video business ?"

My basic reponse is that there's an apples and oranges comparison here. Videos are ran over and over again each day. Plus, because they're within an optimized webpage, they're looked up in a search engine. Thus, if the video concerns a Paris Hilton issue that is discussed on the TV news, the search for that will go up, and thus cause a new round of views for the applicable video.

For the video meter to stop running in this case would be unfair and not negotiable from the standpoint of the video producer. A commercial withing a video, or a sponsored video is part of the video. Thus, it "moves" with the video -- if the video is found on, the ad will be there, and so on.

This is an entirely new approach to commercial message distribution. I don't think one can compare it to current TV commercial economics. I also don't think advertisers really have a good clue what's going on in new media. Many of them can't even define Web 2.0

Mark Cuban Responds To My "UFL Will Be A Failure" Post

Mark Cuban , a key player in the proposed United Football League, responded to my blog post which states in detail why the UFL will fail. He writes

"then again, there are people who read press reports and think they are an expert on someone else's businessplans...

i like our preparation better.


What's interesting is this comment falls right into my take that much of the push behind football league proposals like the UFL is ego. Think about it. Cuban referes to "our preparation" as if he's not willing to listen to outside voices of reason. That's a sure receipe for disaster.

A good analysis must also take into account dissenting voices. Not true for Cuban and the UFL team, it seems. One has to admire -- to a degree -- the PT Barnum level of hubris, but it's also what blinds Mr. Cuban to the spectre of failure.

Moreover, Mark doesn't have a UFL simulation, so he's flying blind!!

But that aside, and while I hold and with a simulation that is the basis for my charge that the UFL will fail...Thanks for the response, Mark!