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Video Ad Builder Final
- 1. Conducted by: DanielDyer Matt Ellis Marc Kirkland Neil Sinay Video Ad Builder
- 2. Product Industry specificpromotional video Fraction of the cost Hundreds of video templates Traditional media package New revenue stream Template Video Builder SEO Positioning Tracked 800 number Search Engine Indexing Video Example
- 3. Pricing - CostsSetup Costs Website – 150 hours @ $75/hr = $11,250 Video template – 7 hours each @ $75/hr 7x75=$525 x 200 videos = $105,000. Total Setup Costs = $116,250 Monthly Costs Internet bandwidth (variable cost) - $2,500/mo Maintenance and Labor - $4,000/mo Total maintenance costs = $7,500/mo Total Costs for Year 1 = $206,250
- 4. Price – PotentialProfits Price per video to stay competitive - $300-600 per video per year. Price point for MOS will be $399 per video per year Sales needed to break even year 1 = 516 videos Sales goal for year one – 1000 videos 1000 x $399 = $399,999 Profit for year one if goals are met = $192,750 Substantial room for unexpected issues Roughly 24.7 million businesses in U.S. 99.9% w/ under 500 employees Only 17,000 large businesses in U.S. in 2007 (SmallBusinessNotes.com, 2007)
- 5. Promotion is… communicating information between the seller and the potential buyer(s) or others in the distribution channel in order to influence attitudes and behavior
- 6. MediaSpan Integrated MarketingCommunications Program 1. Target audience : sm & med bus. that want to advertise 2. Objectives : inform and persuade 3. Key comm. messages : cust value and ease of use 4. Overall message : upward mobility and growth as a result of smart decision-making 5. Comm. Vehicles : Traditional media, web site, search engines 6. Budget : royalties, 800#, misc, workshops, template creation, bandwidth 7. Materials : all e-based. Stored and updated on MediaSpan website
- 7. Video Ad BuilderStrategy Planning Small and Medium -sized businesses Product Place Promotion Price Mass selling Sales promotion Publicity Advertising Traditional Media Internet Past Clients
- 8. Media time andspace expenditures Source: Perreault & McCarthy, 2005 MEDIUM PERCENTAGE TV 28 leveraged mediums Direct Mail 23 Newspaper 22 not applicable to internet market Radio 9 Yellow Pages 7 MediaSpan's market Magazines 6 Outdoor 3 Internet 2
- 9. References IAB internetadvertising revenue report conducted by PriceWaterhouseCoopers (n.d.). Retrieved March 27, 2008, from http://www.iab.net/insights_research/1357 Small Business Notes.com. (2007). How Many Small Businesses Are There? Retrieved March 31, 2008, from Small Business Notes.com: http://www.smallbusinessnotes.com/aboutsb/sbfacts/sbnu mber.html
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Editor's Notes
- #6 MediaSpan’s intent is to change small and medium sized businesses attitudes about the cost of a professional quality video advertisement. MediaSpan wants to EDUCATE and PERSUADE these business types that existing technology helps erode high costs for advertising, compared to traditional mediums. The goal is for small and medium sized businesses to ADOPT this thinking as well and use web video advertising as a cost effective solution.
- #7 The Bear hands model shows how the internet has modified traditional forms of marketing and made product development and promotion relevant to the internet consumer.
- #8 MediaSpan’s promotion approach to the Video Ad Builder project
- #9 More and more companies are shifting their focus with regard to spending. The general trend is for internet advertising to increase its market share significantly. 2007 was $21 Billion; 2006 was $16.9 Billion; 2005 was $12.5 Billion; 2004 was $9.6 Billion; 2003 was $7.2 Billion; 2002 was $6.0 Billion; 2001 was $7.1 Billion! SOURCE: IAB Internet Advertising Bureau audited by PriceWaterhouseCoopers.