Posts Tagged ‘Video’

Online advertising moving to interactive & measurable formats

Wednesday, August 27th, 2008

MeasureJust saw a story this morning about Carat’s advertising outlook for 2009. Even though they are revising their forecast down to reflect the weak economy, they are raising their forecast for online advertising from 23.3% to 23.7% in 2008. For 2009, they are predicting that online advertising will grow 18.6%, vs. earlier estimates of 17.8% growth.

The most interesting bit in the article, however, is this:

[Jerry Buhlmann, CEO of Aegis Media] said the growth in online’s ad spending share has less to do with the growth of consumer use of online media, and more to do with a secular shift within the advertising industry that is driving marketers and agencies toward media that deliver measurable returns on advertising investments.

“With search now central to the planning and execution of any campaign, online media brings a greater level of accountability not just to itself but to TV, print and other forms of advertising,” he said. “This is why we are predicting further strong growth for internet, even when advertisers are cautious in many of the other sectors.” (bold and italics mine)

This shift to performance-based media, sometimes called ROI advertising, is going to continue until most (if not all) advertising is based on performance metrics. Not only is search advertising going to continue its phenomenal growth in leading this sector, but lead generation is going to continue to grow quickly. Joining them will be other media that traditionally have not been measured but will move in that direction, including video and even print.

Marketers have always headed in the direction of measurable media programs. Just think of the 1-800 numbers that can be traced back to specific ads. With money tight, even more dollars will be adjusted to go to these programs that can prove they are worth the money they cost to run.

Photo by aussiegall

You know about YouTube, but have you heard of Hulu or Joost?

Thursday, May 1st, 2008

My latest article just went up at The Industry StandardYouTube, Hulu & Joost: Is there room all three video sites? Go give it a read.

In that article, I cite some statistics from Compete.com and point to the graphic on those stats – here it is:

 

I wasn’t really able to go into all the pros and cons of the various services in that article, but thought I would take a bit of time to break things down a bit more here. First of all, YouTube is kicking all other video services butts, and will continue to do so. It has momentum, users and let’s be honest – it’s fun (and easy) to use. Not to mention that YouTube is owned by Google so there is bound to be continuing innovation with the service, which Robert Scoble claims is in the pipeline as I write this.

Joost is in some trouble. The main issue, as far as I can tell, is that they require users to download their proprietary player in order to watch any Joost videos. I was on the site and wanted to check out an episode of MacGyver (who doesn’t?), but I didn’t because I didn’t want to take the time to download Joost to my computer. This will kill them if they don’t fix it.

I love Hulu so far. I am a sucker for a clean design and easy-to-use interface, and Hulu has both. Plus, there were a bunch of TV shows and clips on the site that I was interested in watching, and with a simple click, I was in business. It was easy to use, the video was high-quality and my experience was great. But Hulu isn’t perfect. For example, it’s not available internationally (there are licensing issues), and it has a limited number of videos available at any given time. Perhaps the weirdest thing about Hulu is that although it features embeddable videos, after a period of time those links break because the videos are pulled off the site. Weird. But even so, I really like Hulu.

In fact, here’s a clip from Hulu for your viewing pleasure (at least it will be pleasant if you like The Office). And this is another user testimony for Hulu – even though I know that this video will no longer be available one day, I like the service so much that I am willing to risk it.

New online video technology launches; has a viable advertising model

Tuesday, April 15th, 2008

Online video is already huge and getting bigger all the time. At least 75% of Internet users watch videos online and 8 hours of video content being uploaded to YouTube EVERY MINUTE. But there is a problem with online video because no one has (yet) figured out a long-term viable advertising model that will work with video. Google (which owns YouTube) is certainly working on it, but all the models that have debuted so far – pre-roll, post-roll, sponsorship – have fallen short because none of the formats have taken advantage of the inherent interactivity of the Internet. That is, until now.

I just took a look at what Revision3 and VideoClix have teamed up to put together and it’s great. Not only is the ad format interesting and cool, it’s also fairly unobtrusive and seems tailor-made for the Internet’s interactive format.

The first video to debut with the new technology is Diggnation (although all of Revision3’s videos will have the technology shortly). Watchers are able to interact with the video as it’s playing. When a viewer clicks on an item in the video that has additional information included, an area is displayed to the right of the video that has the details about the item, as well as room for advertising or additional vendor information.

Diggnation screenshot

This is clever. For one thing, the information that was provided was fun and interesting. (For example, I found out that the Lloyd Hotel in Amsterdam has rooms that range from 1 to 5 stars and one of the rooms has a shower in the middle of the room.) I wanted to click every link in the video to find out more about the video that I was watching, the clothes that the hosts were wearing, and even to see what computers they were using. Since my clicks didn’t stop the video, I was able to click around when something was happening that I was less interested in watching and I didn’t have to miss anything that I didn’t want to miss.

My prediction – this online advertising format will be viable and long-lasting, particularly in the consumer market. Clickable video is here to stay.

What is Twitter?

Thursday, March 6th, 2008

I have been wanting to write about Twitter for quite awhile, to try to explain it to all the (many, many) people who I know who don’t use it (and probably haven’t even heard of it), but now I don’t have to thanks to this video by Common Craft.

If you want to know what Twitter is, watch the video. You still won’t really get it until you join, but at least you’ll have more of an idea as to why people sign up.

I currently use Twitter to find out what’s going on in the industry. I would like to use it to follow friends and business partners, but when I initially checked to find out who in my address book was on Twitter, only one person showed up.

Of course, I have “met” many other people through Twitter, and I am able to follow many of my favorite bloggers who use the service. I also find that Twitter is a great way to stay informed when something big is going on, or when I want to find out specific information about a city I am visiting, or if I need to get feedback about a story that I’m working on. But it would be really cool if I actually knew people who used the service.

I kind of doubt that is going to happen anytime soon.

But if you read my blog and use Twitter, add me and I’ll follow you! @mchang16

And if you don’t know what the @ symbol means, don’t worry – you’ll catch on!

The video long tail gets longer

Thursday, January 24th, 2008

HP’s announcement today that it will begin creating made-to-order DVDs of some of Sony’s movies and TV shows is lengthening the long tail for video even further. By printing movies on-demand, consumers will have access to even more obscure movies and television shows that would not have been economically viable for retailers to stock.

(Thanks to Greg for the tip!)

How to embed a YouTube video into your WordPress blog

Thursday, November 29th, 2007

This may seem like a beginner tip to many of you long-time WordPress bloggers, but the first time that I tried to embed a YouTube video into my WordPress blog, I couldn’t figure it out. (If you don’t want the back story, just skip to the end of this post for the how to.)

Here’s what I did. I am sure that many first-time video posters can relate. I went to YouTube, found the video that I wanted to include, pulled the code from the “embed” area, switched to “code” from “visual” mode in the WordPress editor, and pasted the code. This didn’t work. It displayed an empty box where the video should be, with the broken link x. Broken image

I then proceeded to search through the WordPress manual and help forums for about an hour and still had no luck. I finally found this site, which provided me with the answer.

HOW TO EMBED A YOUTUBE VIDEO INTO YOUR WORDPRESS BLOG:

  1. Click on the “Users” link in the Admin area of your WordPress blog.
  2. If you have multiple users, click “edit” next to your profile.
  3. Turn off the “Use the visual rich editor when writing” feature.
  4. Write your post. You’ll see that the options for “visual” and “code” are gone. You can now paste the YouTube embed code into the post and it will display perfectly.

One word of caution – you can’t switch back to using the visual rich editor after you paste the YouTube code or you’ll have the same problem. You need to publish your post before switching back to the visual editor.

Just for fun, here’s a video about blogging that I found thanks to Penelope Trunk’s Brazen Careerist blog.

 

Video is not going to kill the Internet in 2010

Tuesday, November 27th, 2007

YouTube logoLast week, I posted my first video to YouTube. Like most videos that are uploaded to the site, mine was for friends, a silly inside joke wishing my friend Kim a happy birthday in a public and embarrassing manner.

But after posting the video – which was incredibly easy to do – I started wondering how many people have uploaded videos to YouTube since the site was founded in February 2005. It’s difficult to find stats about YouTube because the company (owned by Google) doesn’t often release information on its users, but this Reuters article from July 2006 claims that, when the article was written, 65,000 videos were being posted to the site per day. If that number is accurate, it’s also likely to be much higher by now. (Although another more recent article from TechCrunch estimates that the number of videos being uploaded to the site daily is between 10,000 and 65,000.)

Some more stats – Compete.com shows that the number of people visiting YouTube is 49,532,320, up 4.5% this month and 94% this year, placing the site’s audience more than double Facebook’s (24,264,850), and gaining on MySpace’s (65,210,800). And that Reuters article claims that in 2006, visitors were watching more than 100 million videos per day on YouTube – again, that figure has likely soared in the past year and a half.

From these stats, I think it’s safe to say that online video is huge – and remember these numbers are from YouTube alone. There are many other online video sites that are popular and gaining audience (Hulu comes to mind).

But all this online video watching isn’t going to happen without consequences, according to the experts. Recent and well-reported (see stories here, herehere and here) research from Nemertes Research shows that by the year 2010, there could be serious slow-downs in the Internet from all the bandwidth demands unless infrastructure is boosted to keep up. According to the report, Nemertes estimates “the financial investment required by access providers to bridge the gap between demand and capacity ranges from $42 billion to $55 billion, or roughly 60%-70% more than service providers currently plan to invest.”

Chicken LittleThe bandwidth demands on the Internet’s infrastructure are clearly rising. But the sky is not falling. Although you would think it just might be from the recent coverage that this research has sparked:

Internet Might Collapse in 2010
Internet to go down in 2010?

And my personal favorite:

Back to Soup Cans and String?

Does this remind anyone of anything, like, maybe a technology issue that was supposed to cripple business a decade ago? To me, this is really starting to sound a lot like Y2K.

Granted, the coverage will have to continue for months and the fear, uncertainty and doubt will have to rise significantly to reach Y2K levels. But in its early stages, the rumblings are the same. And I would like to suggest that we will see the same result.

The Nemertes report claims that to avert the crisis, an extra $42 billion to $55 billion needs to be invested into the infrastructure of the Internet. To put this in context, in preparation for Y2K, “the United States government spent $8.8 billion dollars on Y2K fixes. Private U.S. businesses shelled out an estimated $100 billion dollars to prepare for the bug,” according to an article by CNN.

There is money to be spent when it’s needed. And there is time to correct these issues before they cause us to revert back to soup cans and string. Even the folks sponsoring the research agree. As Internet Innovation Alliance (IIA) co-Chairman Larry Irving told USA Today:

“We’re not trying to play Paul Revere and say that the Internet’s going to fall. If we make the investments we need, then people will have the Internet experience that they want and deserve.”

What's next for Internet advertising

Thursday, October 11th, 2007

Look into the futureGoogle revolutionized Internet advertising in 2000 when it launched AdWords and the pay-per-click (PPC) model. This program was ground-breaking not just because the small text ads that ran alongside Google search results were served up based on relevance, but also because, for the first time, marketers paid only for an action (a click on their ad) – they didn’t have to pay for the thousands of impressions that were not clicked. With AdWords, performance-based media was born.  

Once advertisers demonstrated that they were willing to pay for any click, it was a short leap to believe that they would be willing to pay even more to know exactly who it was that was clicking. Today, lead generation and pay-per-conversion models (Google calls this cost-per-action) have joined PPC as viable business models, providing even more information to marketers who are trying to reach their customers.

 

Lead generation and cost-per-action pricing models are already popular in the B2B world. In the IT market, for example, Web Buyer’s Guide, KnowledgeStorm and Bitpipe are providing lead generation services to the biggest technology companies, which pay anywhere from $20 to $120 per lead to reach the specific individuals that they think are most likely to buy their products.

The Internet advertising market is going to continuing to move from static advertising to performance-based media. According to the just-released IAB Internet Advertising Revenue Report, approximately 50% of 2007 second-quarter revenues were priced on a performance basis, up from 47% reported for the second quarter of 2006. Lead generation revenues accounted for 8% of the 2007 second-quarter revenues or $408 million, up from the 7% ($284 million) reported in the second quarter of 2006. Contrast those statistics with the fact that approximately 46% of 2007 second-quarter revenues were priced on a CPM or impression basis, down from 48% for the same period in 2006.

Performance-based media is the future. We have already seen the movement with traditional Web content. Blog content, podcasts and video are all moving toward incorporating PPC pricing models, as well. I think the next move for these newer content formats is lead generation and cost-per-action. Let’s take video as an example. Silicon Alley has a write up about how advertisers are starting to take video more seriously, but that CPMs are declining. There is a debate going on around how money is going to be made on video advertising – what kind of ads will be used, the length, the format, etc. Applying the move toward performance-based media, I believe that someone is going to develop a lead generation engine around online video that will provide advertisers not only with the information on what videos were watched and how many times, but by whom and what their demographics are. Web Buyer’s Guide has a product on the market that does this, and I think it’s just a matter of time until one of the major video providers offers this type of advertising package.

And looking even further down the road – what’s the next wave of performance-based media? Right now companies pay for leads, but what if in the future companies begin to pay only for customer acquisition, and after an individual makes a purchase the lead provider gets a percentage. A large percentage. Sound like the affiliate programs that are widespread in the consumer market? Sort-of. But what happens when the technology is developed for a video provider to track an individual from the first video that they watch that peaks their interest in a product, all the way to the buy, and the video provider gets a portion of the sale?

Now that’s performance-based media worth talking about.

Disclosure: I used to work for Web Buyer’s Guide.

 

~ Foggy Autumn ~