Brian Price, executive director of marketing
Brian Price, Verizon's executive director of marketing, talks about his company's forays into online video advertising.
Transcript: Brian Price, executive director of marketing
We're a broadband company and an entertainment company, so if you look at the proliferation of broadband, you see that there are a lot of customers that are going and consuming video online. So they started with music videos, really, sports videos, and now when you're looking at it from an advertising perspective, we're just dancing in the wood, or I'd say putting our toes in the water so to speak with videos ads and seeing how affective they are for Verizon.
One of the challenges, I'd say, that we've actually dealt with is that we have two different agencies. We have an offline and an online advertising agency. So getting digital rights for the offline if you're doing a commercial TV spot and if you want to use elements of that online, we have some issues with that piece. We've actually had to recreate a whole different campaign, so to speak, for an online version.
Consistency would tell you that you'd really want to get something and leverage the offline piece for the online. It remains to be seen. Sometimes I think you can be a little edgier online. You can do things a bit more cutting edge. You have properties that you can actually target whereas in a mass TV commercial, it's one size fits all in a lot of ways when developing this one mass spot versus you know, for our "it's on" commercial we actually had three different executions that were totally different and had strong results.
My role at Verizon is really to integrate taking those customers that are in the online media properties and getting them to our sites. It s really more of a direct conversion model that we have at Verizon. As you get to that site, can you do something more? Can you take that video to another level within the site?
I think that video is still more of an awareness vehicle. Will that change over time? It might. Our videos were like 15 seconds and that's still a lot of time versus looking at the average banner which more directly focused. It gets you to a landing page and you want to do your activity from there. There's probably more of a threat to TV, because if you look at budgets and where you have to shift media dollars, I think eventually what you ll see is it coming from TV and not hurting online. I think online will still be web media, search and video will be a part of it.
I have to say that when I see click-through rates, I'm pretty much a metrics guy. So when I look at 16x the response of the click-through rate of a banner on a video, I get excited about that. Now I get further excited when I can improve the correlation of that person exposed to the video ad converting online because we're very much a direct model in terms of converting browsers into buyers of Verizon. I think that's a good sign that -- does that click-through rate translate into more of a sale for those that are exposed to both like an acquisition banner and a video ad from an awareness perspective. I think it does; we're still waiting for the analysis from our ad agency right now to correlate that, but I think it's the results that really excite you.