nick bolton - the evolution and commercialisation of online video

Viocorp © 2008 – Commercial in confidence

The Future of Online Video

Nick Bolton, ViocorpWeb Directions, September 2008


2002 [bewilderment] “what the hell are you talking about?”

2003 [quizzical] “good idea, good luck” 2004 [hmm, interesting] “wow, online video” 2005 [come on in] “let’s talk” 2006 [YouTube] ‘“consumer demand / corporate

block” 2007 [Election broadband fever] “$4.9bn, honest” 2008 “can you speak at Web Directions”


Live, on-demand or archived

Viewers

TV

Web

Mobile

iPod

Game Console

IPTV

...

Content

BroadcastQuality

CorporateVideo

VideoCamera

WebCapture

Mobile

UPLOAD

MANAGE

PUBLISH

COMMERCIALISE

The video distribution chain


Who are we?

Content Creator Publisher Broadcasters Agencies Clients


The evolution of video

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


www.viocorp.com


Hyperlink new browser – HBOS


www.smilefoundation.com.au


Video with slides – ING


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


WebTV - www.viostream.tv


Web TV – Tourism Queensland


What’s so great about video?


How much we talking about?

The US web video advertising market is worth an estimated $1 billion

This compares to the traditional television advertising market of around $50 billion

eg for the Beijing Olympics, NBC sold over $1bn of “traditional” advertising versus around an estimated $6m for its online coverage


The problem with UGC

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)

CPMs for professionally-made online content are $40 today and will reach nearly $46 in 2013

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)


The existing advertising model…

“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

“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

“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


TREND ONE

LOWER COST OF VIDEO PRODUCTION


TREND TWO

BETTER INTERNET


TREND THREE

BETTER DEVICES


TREND FOUR

COMMERCIALISATION

And

MONETISATION


Commercialisation

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


www.souths.com.au


Monetisation

Advertising Sponsorship Pay-per-view Subscription Content syndication Cross-platform Branded content


So what’s a marketer to do?

Brand funded content eg Vodafone “Business Sense”, Huggies “Mums‘n’Bubs”

To share or not to share?eg launch your own online channel

Centralise video throughout organisation

Do it yourself

Take lots of small risks – find the ones that work


www.viocorp.com


www.viostream.tv


Thanks and Q&A

Nick [email protected] 101726LinkedIn: nickybee99Skype: nickybee99www.myspace.com/nickybee99Twitter: nickybee99

nick bolton - the evolution and commercialisation of online video

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