CohenMartin is COO and co-founder at Dynamix, a NYC-based digital video advertising company. The Makegood recently spoke with Jack about digital videos, targeted ads, and Dynamix’ patent-pending digital advertising technology.
The Makegood: Jack, you have been in the digital industry for over 10 years. How do people consume TV today and where is the trend going?
TV has moved well beyond the living room couch and TV. Increasingly, consumers are watching TV and video content on mobile devices – tablets and smartphones. Mobile video will be the big growth story of the next 3-5 years. We’re just at the very beginning of consumers using their smartphones for watching video content. Several converging trends will drive this increase.First, video-content providers and established cable channels are rushing to provide mobile apps to deliver content – from YouTube to Netflix to HBO Go. In addition, you’re starting to see many video apps that offer video content specifically designed for mobile consumption, apps like Vine or NowThis News. Second, smartphone hardware gets more powerful every six months, giving consumers more sleek screen technology that makes the video experience better and better on small devices. And, third, public wi-fi and cell networks are increasing their speed and data to provide the pipe for all this video content.
The Makegood: At Dynamix, you localize advertising. Can you elaborate on your services and how these help companies to be more successful?
Large Fortune 1,000 brands spend millions of dollars every year creating and filming TV commercials. When many of those companies turn to digital video advertising, they naturally re-use or re-purpose those TV commercials that they spent millions filming. That’s very understandable. It also allows those companies to continue their branding online as consumers see familiar brand images, messages, and advertising both online and offline.
However, when repurposing their TV commercials, most companies want to take advantage of the unique capabilities of digital advertising – targeting specific demographics and delivering relevant ads. For example, an automobile commercial is much more relevant digitally if the standard TV commercial also offers directions to the local retailer and a specific offer such as a 30-day zero-percent financing offer. While that sounds easy, adding that type of relevant info and targeted offer, it’s not. And, if a company wants to roll out that targeting nationally, suddenly you would need to create 300 or 400 individual ads – all of them offering directions to a local auto dealer in cities across the U.S..
That’s where Dynamix comes in. Our patent-pending digital advertising technology, allows advertisers and ad agencies to create dynamically rendered video ads affordably, so that an advertiser can deliver 300 different targeted ads to consumers across the U.S.
The Makegood: Your clients are large brands including Chrysler, Dove, and JetBlue. Can you tell us about a campaign or project you are especially proud of?
TJ Maxx/Marshalls wanted to serve their video ads with a dynamic location rendered into the video. The unique challenge was that if a user was in a specific zip code where both a TJ Maxx and Marshalls was located, which creative version and address gets served? We were able to quickly render all of the store locations into their :30 video ad for both stores and add the geographic and business decisioning on the back-end using our proprietary decisioning algorithms. The campaign requirement was to support multiple variations (one for each DMA) of the ad and then traffic it in a targeted way. Turnaround time for this unit had to be quick. Our rendering engine rendered the multiple variations automatically and the geo-targeted trafficking part was done automatically on our ad servers. The ad versioning and geotrafficking alone would have required a lot of time and effort from the client, our service made this campaign possible.
The Makegood: Besides entertaining ad ideas, what are the ways to prevent customers from skipping ads? In the future, will we see more product placements or technology that disables ad skipping?
As mobile video increases, we think advertisers will have to look at how consumers are using video on these devices. We don’t think typical 30 or 60 second pre-roll ads are going to work well in mobile video. But, if you look at how some select brands (Lowe’s for example) are already experimenting with Vine – creating, eye-catching informative commercials in 6 seconds. We think you’re going to see an a lot of creativity in this realm. For example, when Apple releases their next product, what about a 6-second video with a reveal of the product that fades into the iconic Apple logo. And, we’re not a creative agency, we give creative agencies the digital video technology they need to make compelling ads. We think there are going to be a lot of innovative uses of short, eye-catching videos that leave an impression.
The Makegood: How do new habits and devices affect your work and what will we see coming from Dynamix?
The one constant about digital advertising technology is change. No one predicted the dramatic rise of programmatic ad buying and now it’s a pillar of the industry. Publishers and advertisers are exploring ways that native advertising will work well, and we think you’ll see a lot more in that area. The same with mobile video. I don’t think anyone predicted that consumers would latch onto this technology and content so quickly. At Dynamix, our technology is focused on digital video advertising, and a core part of our technology is that our dynamically generated video ads will run on any device – desktop, phone, table, or internet-connected TV. We pay close attention to the needs of advertisers and agencies in digital video, and we’ll continue developing our technology to meet their needs.
The Makegood: Thanks, Jack.