The Future of Online Video Nick Bolton, Viocorp Web Directions, September 2008

2002 [bewilderment] “what the hell are you talking about?” 2003 [quizzical] “good idea, good luck” 2004 [hmm, interesting] “wow, online video” 2005 [come on in] “let’s talk” 2006 [YouTube] ‘ “consumer demand / corporate block” 2007 [Election broadband fever] “$4.9bn, honest” 2008 “can you speak at Web Directions”

2002 [bewilderment] “what the hell are you talking about?”

2003 [quizzical] “good idea, good luck”

2004 [hmm, interesting] “wow, online video”

2005 [come on in] “let’s talk”

2006 [YouTube] ‘ “consumer demand / corporate block”

2007 [Election broadband fever] “$4.9bn, honest”

2008 “can you speak at Web Directions”

Live, on-demand or archived Viewers TV Web Mobile iPod Game Console IPTV ... Content Broadcast Quality Corporate Video Video Camera Web Capture Mobile UPLOAD MANAGE PUBLISH COMMERCIALISE The video distribution chain

Who are we? Content Creator Publisher Broadcasters Agencies Clients

Content Creator

Publisher

Broadcasters

Agencies

Clients

The evolution of video Download file Generic media player Hyperlink / Microsite – HBoS / Beckham Embedded video – SMILE Foundation Audio or Video with Slides – ING Integrated CMS – Career One WebTV iPhone / Mobile Next…..

Download file

Generic media player

Hyperlink / Microsite – HBoS / Beckham

Embedded video – SMILE Foundation

Audio or Video with Slides – ING

Integrated CMS – Career One

WebTV

iPhone / Mobile

Next…..

www.viocorp.com

Hyperlink new browser – HBOS

www.smilefoundation.com.au

Video with slides – ING

Integrated CMS publishing – www.career one.com.au

WebTV - www.viostream.tv

Web TV – Tourism Queensland

What’s so great about video?

What’s so great about video?

How much we talking about? The US web video advertising market is worth an estimated $1 billion This compares to the traditional television advertising market of around $50 billion eg for the Beijing Olympics, NBC sold over $1bn of “traditional” advertising versus around an estimated $6m for its online coverage

The US web video advertising market is worth an estimated $1 billion

This compares to the traditional television advertising market of around $50 billion

eg for the Beijing Olympics, NBC sold over $1bn of “traditional” advertising versus around an estimated $6m for its online coverage

The problem with UGC UGC accounts for about half of the online video streams we’re watching today (and in 2013), but they will only ever yield about 4% of all online video ad revenue (WebTV Wire) CPMs for professionally-made online content are $40 today and will reach nearly $46 in 2013 Compare that to user-generated video CPM rates of around $15 today, a figure likely to only rise to about $17 in 2013 (TV Week)

UGC accounts for about half of the online video streams we’re watching today (and in 2013), but they will only ever yield about 4% of all online video ad revenue (WebTV Wire)

CPMs for professionally-made online content are $40 today and will reach nearly $46 in 2013

Compare that to user-generated video CPM rates of around $15 today, a figure likely to only rise to about $17 in 2013 (TV Week)

The existing advertising model… “ The current agency model, producing marketing programs built around 30 second television ads, is no longer relevant for today’s business environment” Tony Palmer, Chief Marketing Officer for Kimberly Clark “ Today almost every business and social activity is a form of media. An increasing proportion of our social interactions happen across media channels” Ross Dawson, Chairman of Future Exploration Network “ We will spend our marketing funds where the consumer will be and that is changing rapidly” Craig Herbison, General Manager, Brand and Communication for Vodafone Australia

“ The current agency model, producing marketing programs built around 30 second television ads, is no longer relevant for today’s business environment” Tony Palmer, Chief Marketing Officer for Kimberly Clark

“ Today almost every business and social activity is a form of media. An increasing proportion of our social interactions happen across media channels” Ross Dawson, Chairman of Future Exploration Network

“ We will spend our marketing funds where the consumer will be and that is changing rapidly” Craig Herbison, General Manager, Brand and Communication for Vodafone Australia

TREND ONE LOWER COST OF VIDEO PRODUCTION

TREND ONE

LOWER COST OF VIDEO PRODUCTION

TREND TWO BETTER INTERNET

TREND TWO

BETTER INTERNET

TREND THREE BETTER DEVICES

TREND THREE

BETTER DEVICES

TREND FOUR COMMERCIALISATION And MONETISATION

TREND FOUR

COMMERCIALISATION

And

MONETISATION

Commercialisation Duration - www.Souths.com.au Engagement - key messaging Engagement - social networking Interactivity - questions and feedback Speed to market - QBE Geographical dispersion – Hardys Wines Leverage into call to actions

Duration - www.Souths.com.au

Engagement - key messaging

Engagement - social networking

Interactivity - questions and feedback

Speed to market - QBE

Geographical dispersion – Hardys Wines

Leverage into call to actions

www.souths.com.au

Monetisation Advertising Sponsorship Pay-per-view Subscription Content syndication Cross-platform Branded content

Advertising

Sponsorship

Pay-per-view

Subscription

Content syndication

Cross-platform

Branded content

So what’s a marketer to do? Brand funded content eg Vodafone “Business Sense”, Huggies “Mums‘n’Bubs” To share or not to share? eg launch your own online channel Centralise video throughout organisation Do it yourself Take lots of small risks – find the ones that work

Brand funded content eg Vodafone “Business Sense”, Huggies “Mums‘n’Bubs”

To share or not to share? eg launch your own online channel

Centralise video throughout organisation

Do it yourself

Take lots of small risks – find the ones that work

www.viocorp.com

www.viostream.tv

Thanks and Q&A Nick Bolton [email_address] 0412 101726 LinkedIn: nickybee99 Skype: nickybee99 www.myspace.com/nickybee99 Twitter: nickybee99

Nick Bolton

[email_address]

0412 101726

LinkedIn: nickybee99

Skype: nickybee99

www.myspace.com/nickybee99

Twitter: nickybee99