Short-form video is not online TV, and marketers who treat it as such will ultimately fail. Metacafe's CEO lays out the rules for tapping into this significant opportunity.

Marketers who jump into online video by running 30-second pre-rolls in front of the traditional television programming that is now available online have taken an important first step. But it is only a first step.

On television, the commercial break is under assault -- from DVRs, DVDs, audience fragmentation and the fact that many of us simply tune out. Online, the commercial break ultimately doesn't translate and will be a short-lived approach to tapping into a long-term opportunity.

The online video opportunity is about creating new ways for marketers to actively engage their target consumers, cultivating new forms of creativity and facilitating new levels of interaction with content. There's no doubt that TV -- like all media -- will at some point be predominantly delivered via an internet pipe. But the real opportunity in online video has nothing to do with delivering the same shows to the same viewers using the same ad model. It's about short-form video entertainment, which is distinct -- in every way -- from online TV. 

Online video has quickly become a mainstream medium. By comScore's count, 75 percent of the U.S. internet population -- an audience of 142 million people -- watched at least one online video in the month of July. The average viewer actually watched 80 videos over the course of the month, each of which was only 2.9 minutes long on average. Interestingly, the average length of online videos viewed hasn't changed significantly over the last several months -- despite the abundance of long-form programming that's recently come online. In November of 2007, comScore reported that the average length of online videos viewed was 2.8 minutes.

This underscores the point that the real opportunity in online video centers on short-form. It suits today's multitasking, media-snacking lifestyle. Its inherently interactive nature takes advantage of the internet. And it's the content that consistently proves most popular among consumers. The 2008 Magid Media Futures study, which surveys consumers' media-consumption behaviors and preferences, found that the top-five most popular categories of online video were all short-form; in fact, eight out of the top 10 were short-form.

Here's how savvy marketers can effectively take advantage of the short-form video entertainment opportunity.

1. Respect the consumer
Smart marketing today requires creating a value exchange in which marketers provide something of interest and importance to consumers. The days of the captive primetime audience are long gone. In online video, viewers can click away at any time. Give them a reason to pay attention. And if they're really not interested in your product or have already seen your ad several times, let them skip it.

2. Go social
Short-form video entertainment is very much a social medium. It's a dynamic environment where people are uploading, sharing and commenting. They are engaging with the content and with each other in a way never before possible. Put that potential to good use by creating campaigns that encourage active consumer participation and turn consumers into your brand ambassadors. Consider mashups and remixes, send-to-friend programs, video contests and other socially minded options.

3. Be creative
It bears repeating: short-form video is not online TV. The content is different. The user experience is different. The viewer profile is different. The ads need to be different. Putting the same 30-second TV spot in front of a 90-second video doesn't make sense. If you want to do pre-roll, try creating a 10- or 15-second spot. If you want a video to "go viral," make it entertaining and authentic, seed it strategically and promote it with media. If you want people to tell their friends about your product, give them the opportunity to interact with your brand in a hands-on way.

4. Target content -- and consumers
The short-form video entertainment industry is evolving rapidly, and there are now hundreds of boutique production firms making some innovative, creative, highly entertaining short videos and web series. This presents an opportunity for savvy marketers to reach primetime-scale audiences by penetrating the long tail -- where the majority of online video viewers are. This requires working with video sites that can package content from myriad providers and target specific audience segments most interested in that content, thereby ensuring you reach the right person with the right message at the right time.

5. Measure, refine, measure...
Online campaigns are more targeted, more measurable and more efficient than advertising in other media. The traditional TV advertising frequency of 8-10 airings per viewer is largely based on the fact that you don't know which 50 percent (or, more likely, which 10 percent) of your advertising works. Online, you know what works -- and you know quickly. That means you have the opportunity to tweak campaigns to maximize effectiveness. Hold yourself -- and the publishers you work with -- to a high standard.

Online video has reached critical mass remarkably quickly. In July, comScore reported that U.S. consumers watched 11.4 billion online videos and conducted 11.8 billion searches online. Take a minute to think about that. After just a few short years, online video is already on par with search. There's no doubt this creates a significant opportunity for marketers.

But there's also no doubt that marketers who resist changing the way they think about and pursue this opportunity will, in the long run, fall behind their peers and competitors who embrace short-form video as a new medium that requires a fresh approach. Marketers can't afford to rest easy in the short-term comfort provided by that same old 30-second spot running against the same old TV show.

Erick Hachenburg is CEO of Metacafe.