NZ Firm Leads Online Video Advertising Revolution
New Zealand Firm Leads Online Video Advertising Revolution
BuzzShed launched their opt-in video advertising web site today and have begun paying New Zealanders to watch video advertisements online.
BuzzShed pays 30 cents to members every time they watch a targeted video advertisement at www.BuzzShed.com When people sign-up they fill out a questionnaire and then receive occasional emails linking to advertisements on BuzzShed.com. The advertisements are tailored to each member's age, gender, likes and interests.
People are paid through PayPal every time their balance reaches $10.
Founder Hayden Saunders says BuzzShed is a way for advertisers to reach people who spend more time online rather than watching TV or reading newspapers, and a way to communicate a rich advertising message to a captive audience.
"Our members know the advertisements are tailored to their individual profile so they're genuinely interested in each video," he says.
As devices like the MySky set-top box grow in popularity and the use of video on demand increases, viewers find it easy to skip or avoid traditional TV advertisements. Accordingly advertisers are seeking new channels to communicate their advertising message.
The company is hoping to sign-up several thousand New Zealand members before promoting the concept internationally.
BuzzShed's main pitch to advertisers is the ability to send video advertisements to a highly targeted audience, as a more efficient video advertising alternative to television and as a vehicle for launching viral video promotions.
Mr Saunders also hopes advertisers will use BuzzShed to reach web savvy 18 - 25 olds who increasingly spend more time online, reducing the effectiveness of traditional advertising channels at targeting this demographic.
He says that while their focus group interviews suggest that some people are keen to watch as many advertisements as possible, BuzzShed won't release more than two advertisements a day to members.
BuzzShed is a Wellington based company. The founders of BuzzShed include the creator of EarthIsOnSale.com, a web site launched in November 2006 that attracted widespread international attention by selling countries as advertising space to help fund a student OE.