Webit 2010 - Marcus Hartwall

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The presentation addresses the current trends, challenges and opportunities in the web-tv industry. The presentation was held at Webit Expo on October 27, 2010 by Marcus Hartwall.

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Webit 2010 - Marcus Hartwall

  1. 1. WEB-TV The trends, the challenges and the opportunities Marcus Hartwall New Media Director October 27, 2010
  2. 2. “Television is like the American toaster. You push a button and the same things pops up every time” - Alfred Hitchcock slide 2
  3. 3. Not anymore… slide 3
  4. 4. slide 4
  5. 5. Outline for today slide 5 1. The trend “Internet video explosion” 2. The challenge “The war of the global living room” 3. The opportunity “Maximizing the impact of video advertising”
  6. 6. slide 6 The trend Internet video explosion
  7. 7. slide 7  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 minutes.  Internet-connected television sets are expected to be in 43 million United States homes by 2015, up from 2 million this year. The trend Internet video explosion 0 5 10 15 20 Average web-TV viewing Daily minutes
  8. 8.  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 2012. The trend Internet video explosion slide 8
  9. 9. The challenge The war for the digital living room slide 9
  10. 10. The content makers The broadcasters The viewer Back in the good old days The distributors slide 10
  11. 11. The viewer The content makers The device makers The service providers The internet giants slide 11 The broadcasters $ The distributors
  12. 12.  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 to YouTube.  Over 30 billion videos were watched in the U.S. alone.  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. The challenge YouTube slide 12
  13. 13.  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. The challenge Hulu slide 13
  14. 14.  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 screens.  Unified listings are a big part of how Google's trying to harmonize web content with TV content.  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. The challenge Google TV slide 14
  15. 15. The opportunity Maximizing the impact of video advertising slide 15
  16. 16.  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 the two. The opportunity Recent research slide 16
  17. 17. The opportunity Recent research 46 28 21 14 65 50 39 26 General Recall Brand Recall Message recall Likeability TV Online video 44 26 19 13 52 35 29 17 General Recall Brand Recall Message recall Likeability TV TV + Online video +18% +35% +53% +31% slide 17
  18. 18. 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 + + + slide 18
  19. 19. slide 19
  20. 20. Business logic  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 OR  Buy video ad (30 sec)  100,000 impressions (CTR 5%)  CPM: 30 BGN Campaign cost: 3,000 BGN slide 20
  21. 21.  Key success factors are:  Placement of the ad.  Landing page optimization.  Dare to be creative! The opportunity How to make an effective campaign “Someone might click-through on an ad, but clickthrough’s don't always translate into results.” slide 21
  22. 22. What is coming next? slide 22
  23. 23. slide 23
  24. 24.  We are currently experiencing the biggest paradigm shift ever experienced in the industry.  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. The summary Ultimately - the winner is the viewer! slide 24
  25. 25. Thank you! Marcus Hartwall marcus.hartwall@ntv.bg Presentation available at slideshare.net/novatelevision

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