Internet video is now over one third of all
consumer internet traffic and will approach 40%
by the end of 2010.
The average viewing time of videos from Web
TV platforms is currently 9.5 minutes. In 2008,
the average viewing time was 4.8 minutes. By
2013, this time is expected to double to 18.5
Internet-connected television sets are expected
to be in 43 million United States homes by 2015,
up from 2 million this year.
Internet video explosion
Average web-TV viewing
Advertisers spend $12.1 billion online first half of 2010, which is
up 11.3% from the year before.
Video advertising increased by 48% this year and expected to
reach $16.1 billion through paid and ad-supported services by
Internet video explosion
The war for the digital living room
Back in the good old days
The service providers
$ The distributors
Google paid $1.65 billion for the site in October
2006, but has struggled to make it profitable.
Every minute, 24 hours of video content is uploaded
Over 30 billion videos were watched in the U.S.
Signed deals with Hollywood studios - including
Sony, Lion's Gate and M.G.M. – to publish thousand
of TV episodes and movies.
Google recently opened up for the possibility to
charge for premium content.
Credit Suisse recently published a detailed analysis
of YouTube's business, estimating that the site lost
approximately $470 million in 2009.
Joint venture between NBC Universal, Walt
Disney and News Corp.
790 million video ad views during August 2010.
Hulu Plus launched in the summer of 2010 with
a subscription based model. For $9.99 a month
the users gain full access to their entire library in
high definition and possibility to play it on
devices like the iPhone, iPad, Playstation, Xbox
360 and TiVo’s.
Currently considering an initial public offering to
raise $300 million in 2011.
Google’s objective is to bring "the web to your
TV and your TV to the web”.
Several internet companies and media outlets
- including HBO, CNBC, Netflix and Amazon
– will offer Web content for connected TV
Unified listings are a big part of how Google's
trying to harmonize web content with TV
The idea is to divorce the content from the
source. Google wants to become the main
starting point for our TV experience.
Major television networks — ABC, CBS, Hulu
and NBC — will currently not participate.
Maximizing the impact of video advertising
Study by The Nielsen Company earlier this year covering
412 products across 951 video advertisements.
Effectiveness measured based upon brand metrics of ad
recall, brand recall, message recall and likeability.
Focused on the relative impact of video advertising
compared to TV advertising, as well as the combination of
TV Online video
TV TV + Online video
Advantages of video advertising
Forward learning experience
Combination of sight, sounds and motion
Interactivity - “one click away from your website”
= Most effective online advertising medium
• 10 – 50 times higher CTR
• Up to 10 times higher conversion rate
No extra cost for producing the commercial
Average CTR 0,2 - 0,8% on banner campaigns
Average CTR Nova Play 5 - 9%
To achieve 5,000 clicks you can…
Buy banner (300 x 250)
1,000,000 impressions (CTR 0,5%)
CPM: 14 BGN
Campaign cost: 14,000 BGN
Buy video ad (30 sec)
100,000 impressions (CTR 5%)
CPM: 30 BGN
Campaign cost: 3,000 BGN
Key success factors are:
Placement of the ad.
Landing page optimization.
Dare to be creative!
How to make an effective campaign
“Someone might click-through on
an ad, but clickthrough’s don't
always translate into results.”
We are currently experiencing the biggest
paradigm shift ever experienced in the
Two fundamental questions need to be asked:
What will be prevailing revenue model?
How will the ecosystem players cooperate
to make this happen?
From an advertiser perspective, video
advertising is the new “must have” online.
Ultimately - the winner is the viewer!
Presentation available at slideshare.net/novatelevision