MySpace announced today they will be delivering video to mobile phones by streaming those videos through MySpace Mobile. The video service is free and will be supported by advertisements. While it is great idea by MySpace to move into the mobile video and mobile advertising market, they are walking in backwards from an ad perspective. Do they really think a mobile phone user will sit through a pre-roll ad before their :30 second video?
The Silicon Valley Insider has a report from TubeMogul that concludes “most people don’t watch web video for more than 60 seconds.”
Now, I am willing to bet that these numbers are drastically lower for mobile video. If a person sitting in a chair in their office does not watch a video for more than 60 seconds, how long do you think the person waiting for the bus is willing to watch a video? And if there is an ad before that video…not very long.
MySpace needs to drastically rethink their advertising model within the mobile space in order to generate significant revenue from this venture. In-stream video advertising on mobile devices is a very small market, as most mobile ad networks utilize banners on a CPC or CPM. I think MySpace should look into utilizing overlay units in the videos with a post-roll ad at the end. The next logical step would be to figure out how to make these units clickable, and therefore measureable.
Kudos to MySpace for embracing a relatively uncharted land such as advertising on mobile video, but to offer ads that are nearing extinction on the web is a major step backwards.