April 30, 2007 09:38 ET

XLNTads Presents Top Myths Associated With Consumer-Generated Advertising

CONSHOHOCKEN, PA -- (MARKET WIRE) -- April 30, 2007 -- Consumer-generated advertising (CGA) is increasingly being recognized as an effective addition to the overall marketing mix. Yet some common misconceptions are preventing online advertisers from taking full advantage of CGA channels. Based on conversations with major brands, Neil Perry, acting CEO of XLNTads, has identified the top myths that are causing advertisers to miss out on the tremendous cost savings and creative resources that CGA can provide.

MYTH: Consumer-generated advertising campaigns are too expensive to execute.

FACT: MarketingVOX recently reported that the average 30-second spot by a nationally recognized ad agency costs upwards of $380,000. While CGA campaigns can be expensive to launch and manage because of the time and resources associated, XLNTads offers an economical solution. Because hosts CGA campaigns as well as reviews entries, formats video files, provides content for the site and manages campaigns from start to finish, brands can execute campaigns at less than a third of the costs of traditional advertising methods.

MYTH: Consumers may have talent, but they really can't really replicate the high production values of agency professionals.

FACT: The arrival of video-sharing sites on the Internet made it possible for anyone with a camera to capture their thoughts, lives and interests and share them with the world. Today, communities have developed and their technical sophistication has grown. The technical quality, viewer experience and consumer appeal can be very high. Many videographers have drawn large and devoted fan bases; for example, Kevin Nalty is a videographer whose videos on YouTube, Google Video, Yahoo!, Metacafe, Revver and others have been viewed in excess of seven million times.

MYTH: The CGA fad will be over before I even get started on a campaign.

FACT: One truth to this myth is the urgency to act. eMarketer predicts that in 2007, "the influence of consumer-generated content on U.S. consumers' purchase decisions will continue to grow," and brands should take advantage of this trend now before competitors beat them to the punch. XLNTads can effectively launch a CGA campaign for advertisers in as little as 45 days.

MYTH: CGA only works for well-known or iconic brands.

FACT: CGA channels actually hold many benefits for smaller or emerging brands. Running a campaign on requires little time, few resources or investment from companies, and purchasing a consumer-generated ad costs only $20,000. The platform also offers a unique opportunity to learn how consumers initially view new brands.

MYTH: Consumers and amateurs will misuse my brand.

FACT: Due to the nature of user generated content, consumers can easily obtain, reproduce and misuse physical assets of brands. Companies should launch CGA campaigns through a secure environment and offer safe ways for consumers to interact with their brand, where they can at least influence and affect what ultimately gets distributed and seen by others.

MYTH: The brand's corporate Web site is the best and safest place to run CGA campaigns.

FACT: Corporate sites are safe; however, they typically do not generate traffic beyond the brand's already existing customer base. is capable of supporting 20 CGA campaigns at once, providing companies with benefits from traffic generated by other brands on the site. With interactive features and guest commentary from experts and videographers, has content to engage consumers and entice them to return again and again.


XLNTads brings brands and their loyal consumers together for creative collaboration. Powered by state of the art video hosting technology, provides a commercial quality platform for creating brand commercials by budding amateur filmmakers. For brands it's a fast, simple and cost-effective way to leverage the consumer-generated advertising boom. For ad creators it's a convenient way to interact with over a dozen major brands all in one place. Please visit for more information.

Contact Information

  • Media Contact:
    Kathleen Formidoni
    blast! PR
    (919) 833-9975 x.11
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