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Nick Bolton - The evolution and commercialisation of online video

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Internet video has come a long way from the postage stamp generic media player to the commercial success it is today.

This session looks at this journey, and examines the multitude of online video options available. We will look at content creation (simple single piece, to multi-platform, and user generated), distribution methods and publishing strategies.

Then once the video is published, how do you justify it (the ROI), commercialise it (leverage the content) and monetise it through syndication, advertising, sponsorship, or pay-per-view/subscription. There will be real time demos and case studies.

Published in: Technology, Business
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Nick Bolton - The evolution and commercialisation of online video

  1. 1. The Future of Online Video Nick Bolton, Viocorp Web Directions, September 2008
  2. 2. <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>
  3. 3. 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
  4. 4. 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>
  5. 5. 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>
  6. 6. www.viocorp.com
  7. 7. Hyperlink new browser – HBOS
  8. 8. www.smilefoundation.com.au
  9. 9. Video with slides – ING
  10. 10. Integrated CMS publishing – www.career one.com.au
  11. 11. WebTV - www.viostream.tv
  12. 12. Web TV – Tourism Queensland
  13. 13. What’s so great about video?
  14. 14. What’s so great about video?
  15. 15. 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>
  16. 16. 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>
  17. 17. 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>
  18. 18. <ul><li>TREND ONE </li></ul><ul><li>LOWER COST OF VIDEO PRODUCTION </li></ul>
  19. 19. <ul><li>TREND TWO </li></ul><ul><li>BETTER INTERNET </li></ul>
  20. 20. <ul><li>TREND THREE </li></ul><ul><li>BETTER DEVICES </li></ul>
  21. 21. <ul><li>TREND FOUR </li></ul><ul><li>COMMERCIALISATION </li></ul><ul><li>And </li></ul><ul><li>MONETISATION </li></ul>
  22. 22. 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>
  23. 23. www.souths.com.au
  24. 26. 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>
  25. 27. 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>
  26. 28. www.viocorp.com
  27. 29. www.viostream.tv
  28. 30. 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>

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