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

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

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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

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Who are we? <ul><li>Content Creator </li></ul><ul><li>Publisher </li></ul><ul><li>Broadcasters </li></ul><ul><li>Agencies </li></ul><ul><li>Clients </li></ul>

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

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www.viocorp.com

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Hyperlink new browser – HBOS

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www.smilefoundation.com.au

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Video with slides – ING

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

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WebTV - www.viostream.tv

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Web TV – Tourism Queensland

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What’s so great about video?

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What’s so great about video?

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

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The problem with UGC <ul><li>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) </li></ul><ul><li>CPMs for professionally-made online content are $40 today and will reach nearly $46 in 2013 </li></ul><ul><li>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) </li></ul>

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The existing advertising model… <ul><li>“ 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 </li></ul><ul><li>“ 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 </li></ul><ul><li>“ 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 </li></ul>

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<ul><li>TREND ONE </li></ul><ul><li>LOWER COST OF VIDEO PRODUCTION </li></ul>

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<ul><li>TREND TWO </li></ul><ul><li>BETTER INTERNET </li></ul>

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<ul><li>TREND THREE </li></ul><ul><li>BETTER DEVICES </li></ul>

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<ul><li>TREND FOUR </li></ul><ul><li>COMMERCIALISATION </li></ul><ul><li>And </li></ul><ul><li>MONETISATION </li></ul>

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

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www.souths.com.au

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Monetisation <ul><li>Advertising </li></ul><ul><li>Sponsorship </li></ul><ul><li>Pay-per-view </li></ul><ul><li>Subscription </li></ul><ul><li>Content syndication </li></ul><ul><li>Cross-platform </li></ul><ul><li>Branded content </li></ul>

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

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www.viocorp.com

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www.viostream.tv

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