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State of Online Video 201006
 

State of Online Video 201006

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    State of Online Video 201006 State of Online Video 201006 Presentation Transcript

    • About WatchMojo.com Presented by Ashkan Karbasfrooshan CEO, WatchMojo Branded Content Summit, Toronto – June 2010
    • Advertising by Medium • Television remains the largest medium
    • How big is Television? • In the US, television advertising nearly a $70B annual industry • Combine Box office, DVD sales and cable, “Hollywood” is a $230 Billion industry in US.
    • Advertising by Medium • And television’s share of the ad market will continue to slip
    • Mojo Risin’ • By 2020, Internet video will become larger than Live broadcast TV
    • Online is Only Growth Category Video is #1 Growth Segment
    • Why? Because Times are Changing… Source: Morgan Stanley (and proof that bankers have sense of humor?
    • Fragmentation of Web • Indeed, we have seen considerable fragmenting online in past 10 years • 20 years ago, you could buy an ad on CBS, NBC and ABC and reach “everyone” • 10 years ago, you could buy MSN, AOL and Yahoo and reach “everyone” • Today, the world is fragmented. Tomorrow this trend will only accelerate.
    • History repeats itself – Part 1/2 • Big 3 (NBC, CBS, ABC) shrunk over time as Cable television proliferated • Will we see further fragmenting with Online Video?
    • History repeats itself – Part 2/2 • But overall, in macro terms, more content simply means more overall consumption
    • Online Video 3-fold Growth in 18 Months
    • Where Content Fits Video companies fall into following 7 segments 1. Editing Software and Compression Tools: Adobe, Apple, Avid, JumpCut, Sorensen, On2 2. Content Producers: DECA, Eqal, Fora.tv, For Your Imagination, Funny or Die, Generate, Howcast, Katalyst Media, Machinima, Mania TV, Next New Networks, ON Networks, Revision3, VideoJug, and of course our own WatchMojo. 3. Content Management System (CMS): blip.tv, Brightcove, Feedroom, Justin.tv, KIT Digital, Livestream, Ooyala, Maven, Mogulus, Permission TV, Qik, uStream, VMIX. 4. Content Aggregation, File Hosting, Sharing and Distribution: 5Min, Break, DailyMotion, Hulu, Kaltura, Metacafe, Nabbr, Revver, Vimeo, YouTube. 5. Advertising Creation and Management: Adap.tv, Auditude, Brightroll, Broadband Enterprises, Freewheel, Overlay.tv, Panache, Scanscout, Tidal TV, Tremor Media, Video Egg, Yume. 6. Content Delivery Network (CDN): Akamai, BitGravity, Edgecast, Grid Networks, Limelight Networks, Panther Express. 7. Search, Discovery and Recovery: Blinkx, Cast TV, Clipblast, Dabble, Everyzing, Google, Mefeedia, Pixsy, Truveo. * Italics denotes publicly traded companies or companies already acquired.
    • Can Branded Content be Interesting and Effective? Content Can Be Either/Or Promotional Commercial* - Trailers (*not as in an ad, as in a revenue source) - Ads - Informational Content - Demos - To Drive e-Commerce (sales) - Reels - Create Community - Contests - Etc. Here, the content needs to be professional, informational and Here, worry more about making the entertaining. videos entertaining and informative, Don’t put cart ahead of horse and worry and getting them seen. about revenues. Again, focus should Over time, if you build a catalog and be on quality/quantity balance and distribution, then try to convert the distribution. “cost item” into a “profit center”. Over time, create multiple revenue sources across many platforms.
    • What do people watch on YouTube? Slowly but surely, consumers watch more professional content… Which begs the question: what is “professional content”?
    • Professional Content – Part 1/2 • Back in 2007, a Pyramid of online video content began to emerge: (aka Head, Torso, Long-tail, etc.)
    • Professional Content – Part 2/2 • Updated Pyramid in 2010… Read more on this topic here.
    • Online Video WatchMojo.com About Reality / Challenges Graph 1: 53% of YouTube videos are seen less 500 times Graph 2: 25% of views come in the first 4 days 50% in first 14 days 75% in first 44 days 95% in first 81 days Source: Tubemogul Graph 3: 50% watch videos for 30-60 seconds Read more on this topic here.
    • Crap, Clutter and Copyright Every minute, 24 hours of uploaded onto YouTube. Most of it is Pirated content or UGC.
    • Search: Discovery and Recovery Read more on this topic here.
    • WatchMojo.com 1. Produces original video content and publishes new clips every day. We publish over 100 clips each month. 2. Distributes catalog of 5,500 videos across 100 websites, as well as out-of-home digital networks and wireless companies. 3. Occasionally distributes 3rd party content across our content pipeline (both ads and content). 4. Offers advertisers the opportunity to promote brands in and alongside professional, high-quality and ad-friendly content. 5. We also partner & obtain rights to long form content and create made-for-web, short form content.
    • Business Model The banking model: retail, corporate and investment banking fees Lessons: - When you start, you have no clue what your revenue streams will look like. - You won’t be making any money early on. - Look at other media and other platforms for potential revenue streams. Read more on this topic here. 1- a safe income stream: licensing, like retail banking, provides a recurring and non-volatile revenue base. 2- a growth business: syndication, like corporate banking, requires other companies in the ecosystem to do well. This can provide higher CPM rates by placing content in the right context. 3- a wildly lucrative stream: advertising, like investment banking, takes time to develop, is speculative and seasonal, and risks drying up abruptly. Notice how advertising revenue spikes each fourth quarter, for example.
    • Forget $, Worry First About Getting Videos Seen Viewing Patterns of WatchMojo Videos Run Counter to Industry Industry Average: WatchMojo Trend: For example: WatchMojo’s most popular video of all time started off with a bump, then trailed off, but thanks to our marketing techniques, it has ramped up to cross: 500,000 views after 3 months 1,000,000 after 9 months 2,000,000 after 12 months 2,500,000 after 18 months
    • Online Growth WatchMojo.com Property Growth on Network (Distribution Partners) Monthly All-Time Since 2006, WatchMojo.com has streamed over 145M videos - Crossed 25M all-time streams in April, 2008 (after 28 months) - Crossed 50M all-time streams in April, 2009 (12 months later) - Crossed 100M all-time streams in December, 2009 (9 months later) - Crossed 145M all-time streams in May, 2010
    • Something For Everyone Females Males Females Males 13 - 24 13 - 24 25 - 54 25 - 54
    • VIRAL VIDEO PERFORMANCE Juggling Threesome Playing Chicken Hacky Sack TOTAL VIEWS 200,000 in 1 month (organic views) Golf Ball Skeet Shooting Chip ‘n Dunk
    • PRE-ROLL + COMPANION 300x60 Pre-Rolls ran against content on The WatchMojo Network
    • 300x250 + 728x90 Banners ran on WatchMojo.com
    • HOMEPAGE TAKEOVER - WATCHMOJO.COM Full Media Roadblock Full Page Skin 300x60 Microsite Promo Coors Videos As Editorial Picks Coors Light leveraged WatchMojo.com with a full homepage takeover
    • MICROSITE - WATCHMOJO.COM Full Page Skin Dedicated Coors Light Video Player Relevant Engaging Content - Cars, Girls, Golf, Sports, Film, Comedy WatchMojo created a microsite with a video player dedicated to original Coors Light content
    • CHANNEL TAKEOVER - YOUTUBE Click Through To Coors Facebook Page Coors Videos As Lead Video In Rotation Full Page Skin Permanent 300x250 Banner Coors Light leveraged WatchMojo’s YouTube Channel with a full takeover
    • The Concept: Viacom’s NickJr.com was planning an “Off to School, Back to You” microsite targeting moms, and needed WatchMojo to create short pre-roll ads using relevant videos from WatchMojo’s library, to run prior to actual video content on the microsite. The Challenge: McDonald’s needed high quality professional video content to increase engagement and retention on the microsite. The client was also looking at a quick turnaround of less than 2 weeks. The Solution: WatchMojo provided six videos on women’s fitness, beauty, well-being, yoga and eating well. The Process: McDonald’s and their agency were working with Glam Media who turned to WatchMojo. We submitted fifteen videos to the client and agency. They selected the six that best fit their target. WatchMojo then re-edited them into pre-roll ads. The Result: The microsite saw higher user engagement and retention. Which contributed to the overall success of the campaign.
    • The Concept: MySpace required video content to power the Fashion Section of a microsite for Coca-Cola’s “Open Happiness” Campaign. The Challenge: Find a selection of fashion videos that match the overall feel of Coca-Cola’s brand and message. The Solution: WatchMojo identified several clips that both met the clients needs and supported their overall campaign. The Process: WatchMojo scanned its complete library of content to single out the finest fashion videos we had to offer. The Result: WatchMojo’s content integrated flawlessly with the microsite, adding precious value to Coca- Cola’s “Open Happiness” Campaign.
    • The Concept: Coors Light wanted to raise awareness of its Vancouver 2010 Olympic Games sponsorship as well as drive users to sign up for a contest hosted on CoorsLight.ca The Challenge: Coors Light was targeting males 19-24 across Canada and wanted their ads to run against male interest content for example: sports, music, babes, etc. The challenge was selecting partners that could run banner and pre-roll ads alongside WatchMojo male interest content The Solution: WatchMojo vetted and selected a number of partners within The WatchMojo Network. The Process: WatchMojo successfully negotiated with each partner to guarantee the best value for the client. The Result: The campaign delivered more than 700,000 impressions and was seen on 7 different partner sites across The WatchMojo Network.
    • The Concept: Foster’s Beer wanted to raise awareness of their classic 750 ml “Oil Can” The Challenge: WatchMojo had to work with tight budgets and short lead time to create an experience that would entice the user to want and buy Foster’s Beer. The Solution: WatchMojo placed the Foster’s ads on specialty sites within The WatchMojo Network, created a dedicated microsite fully branded to Foster’s Beer including original WatchMojo content related to Australia, Sports, and Music and on two specific days of the campaign, we gave Foster’s a Homepage Takeover. The Result: The campaign delivered more than 500,000 impressions and was seen on 7 different partner sites across The WatchMojo Network.
    • The Concept: WatchMojo was approached by the Canadian Association of Optometrists to produce a series of videos to promote their “October is Eye Health Month” initiative The Challenge: The videos were very information heavy so the challenge was to make them entertaining and engaging enough to capture the audience. The Solution: WatchMojo created two videos, one discussing common symptoms related to “Computer Vision Syndrome”. The other video was targeted to parents with information about vision care for children. The Process: WatchMojo worked with the CAO’s PR agency, Fleishman-Hillard throughout the scripting process. Fleishman also recommended a CAO member optometrist that we interviewed for the segments. The Result: The results were beyond anything WatchMojo and Fleishman have ever seen before. To say the videos went viral is an understatement.
    • The Concept: Verizon needed video content to fill the Travel Section of their Verizon Central Newsroom. The Challenge: As part of Verizon’s CRM program, they created the Verizon Central Portal and wanted to engage their existing customers with compelling and informative content. The Solution: Initially WatchMojo was to provide only one video on New Orleans. However, Verizon was so impressed with the quality of the video that they immediately ordered 3 new videos and decided to license all our travel content. The Process: WatchMojo did its research on New Orleans, contacted the New Orleans Board of Tourism to acquire footage. We then scripted, edited and voiced the clip for Verizon and delivered it within 3 days of the request. “WatchMojo’s content has definitely allowed Verizon’s Travel The Result: player to become one of the main video views drivers of all Verizon Central now has a comprehensive players. Due to this success, Verizon is implementing Social Travel Section offering their customers a user Media strategies to attract new viewers to the Travel page and experience second to none. player.” - Jose Sifuentes, Kit Digital
    • The Concept: Great Works had created a viral video for Malibu Rum and was looking to increase views. The video had gotten 200 views on Malibu’s own YouTube channel. The Challenge: Great Works could not buy media to drive views, it needed to rely solely on actual legitimate user views, unsupported by any media buy whatsoever. The Solution: WatchMojo met with Great Works and proposed something it had never suggested before: to publish the video on its property and distribute it across its syndication network. The Process: WatchMojo featured the video on our YouTube channel main page, as a related video, as a video response, as well as pushed it out to distribution partners, all within 24 hours of getting the video. The Result: In less than a month, the video was seen over 10,000 times (50x more than on client’s own channel) and counting…
    • The Concept: MySpace needed video content for their Vitamin Water sponsored NCAA Basketball March Madness Microsite. The Challenge: Create entertaining and informative videos that would increase user engagement. The Solution: WatchMojo produced short clips, split up into 4 categories – Player Profiles, Team Profiles, Famous Coaches and Classic Rivalries. The Process: The NCAA provided WatchMojo with archive footage, which we then recycled into 40 new clips. WatchMojo scripted, voiced, edited and added music and graphics, breathing new life into old footage. The Result: WatchMojo provided relevant content which helped increase engagement and “dwell time” on the Vitamin Water Microsite.
    • How to Reach Us? Ashkan Karbasfrooshan CEO Ash@WatchMojo.com Phone: 1-514-448-1631 Cell: 1-514-827-2532 Fax: 1-866-868-0981 www.WatchMojo.com