How do you monetize web videos; well, according to Silicon Alley its product placement. They cite 6 reasons why product placement works including anti-skip, always connected with the video, and measurable. At the same time, Silicon Alley warns in a separate editorial that product placement can prove embarrassing. Not sure I totally agree; none of their examples seemed horrible. What may be worse is missed opportunities. One example would be M&Ms choosing to not be featured in the movie, ET; instead, Reeses Pieces were substituted as the candy that attracts the alien.
For advertisers trying to determine where to place their brand, the key is that the brand name should already be known and its brand message understood. While an unknown brand may be featured, it may be unrealistic to expect that the viewer makes a connection to the brand and its value or preference. Product placement is not the only way to be successful with web video. Hulu's strategy that less is more, is also proving valuable. Less clutter means more likelihood that the message is heard and the message resonates with the viewer. "Fewer ads make the ones on the site more memorable, Hulu executives say, allowing the site to charge higher prices for the ad units."
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