Is Joe Marchese over at Mediapost Online Spin misunderstanding contextual video advertising? Or is my idea of it skewed? Joe says…

Contextual targeting for video content will inevitably lead to the exact same result as contextually targeting text-based content: a decent return for direct marketers and an overwhelming lack of participation by major brand advertisers. The problem is that unlike with text-based content, the cost associated with production of quality video content will require significant financing by major brands if it is going to survive online. If Coke is restricted to appearing only when carbonated beverages are discussed within video content, Coke’s ability to buy media will be seriously limited. Brands are, or at least want to be, relevant to our culture in ways far beyond their products’ most basic components. Brands want to be fun, or dramatic, or cool.

How does one contextually target laughter or drama? How would you contextually target cool? Even if you could target these things (something we will get to), the elephant in the room is that there is no current method for delivering brand creative at relevant moments. Do we really have to go through a phase where Nike POPS UP on the screen whenever a character says “football”?

Perhaps I am wrong about the technology, but is what he’s suggesting correct? That somehow a methodology will be in place to “look” at what’s on the screen at different points in a video and deliver an ad at that point? See=soda, Show=Coke ad?

I was under the impression that contextual video advertising would still be based upon A.) Tags, descriptions, etc… or B.) A category selection (business, autos, etc…) or C.) An actual human who views it and classifies it.

Am I right, or is Joe? According to this clickZ piece…

According to the AdWords blog, video ads will compete for placement on sites with other text, Flash and image ads. As with image ads, advertisers can choose to bid on a CPC or CPM basis. They will be available for campaigns with both site-based and keyword-based targeting, and can also be geo-targeted internationally, nationally, or locally.