There are several ways in which social networks can monetise on content, including advertising (product placement, behaviour targeting and contextual), social commerce and, perhaps in the future, mobile.

New advertising formats such as interactive video or rich media formats allow higher engagement rates and do not interrupt the user experience, thereby bringing user engagement to a different level and providing brand engagement and better monetisation opportunities.

Video is a key area that social networks, publishers, brand owners and advertisers are looking to increase awareness of. Traditional production companies are snapping up the rights to online video content. Shine Reveille  recently took on MySpace TV content to distribute to  traditional media outlets such as television and DVD, while broadcasters such as the BBC and Channel 4 are distributing their content through platforms like Bebo.

Brands are producing more videos, hosting  these on their sites and using seeding strategies to increase pick-up, interactivity and longevity of the content. Video represents a unique opportunity to communicate marketing messages.

Brands are monetising their video content  through contextual advertising, sponsorship and placement - all of which are not engaging and interactive. And by placing users at the centre of the online video, new platforms and ad format have enabled the fusion of consumer created advertising and non-intrusive but active, participation by viewers.

The success Bebo has had with Kate Modern is now followed by Sofia’s Diary where key brands are sponsoring the series. Product sponsorship can also be married  to online video advertising placements that are non-intrusive and reinforce the value of the product.

Consumer-inspired  commercial opportunities are a real opportunity to capture monetising opportunities. Online video opportunities allow users to interact with the brand, access more information about the product and emotionally connect with brands.

Perhaps the Rolls-Royce of that is when your target audience becomes your brand ambassador and takes the time to create an ode to your brand, product or service. When brands embrace consumer power and involve them in successful ads that are driven by the evolution of video and how that is translated in digital environments, you can see how the medium holds the potential to inspire others to capture similar interest.

Irfon Watkins, CEO

Coull, Bristol

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