Interesting article I came across on Video Insider

Most everyone agrees that future video advertising will be significantly different. At least five changes are likely.

1. The advertising market will shrink for several years. Digital media projects that five years from now the aggregate advertising spend will be smaller than it was last year. Total advertising revenues from all modes in 2013 are projected at $245 billion as compared to $285 billion in 2008. Internet advertising will gain share from 8% to 22%.

The Great Recession of 2009 is leading sponsors to radically alter long-held assumptions about the marketing and advertising uses of media. In short, advertisers will face new competition from their own sponsors as sponsors increasingly use the Internet as a direct media channel to customers. They'll allocate a greater share of marketing budgets to enrich their own Web sites as interactive, lead-generation properties. Similarly, they'll intensify focus on their own email marketing and employ embedded video and related forms of Digital Media in press releases, product promotions, and corporate communications.

2. Video will migrate to the Internet. Cable and satellite networks are evolutionary dead-ends that cannot hope to match the innovative pace enabled by the Internet.

Consumers are learning to get unlimited Internet access at their TV, most commonly by attaching a laptop computer. The computer's onboard WiFi links over a home network to the Internet thereby transforming the laptop into an Internet Gateway for the TV. A remote mouse and keyboard provides a lean-back viewing experience 15 - 20 feet distant from the screen. While the uninitiated sometimes assume the set-up is too complex, numerous instructional videos demonstrate that it is easier to connect a laptop computer to the TV than it is to attach a TiVo or cable set-top box.

An estimated 10 million Americans watch Internet video on TV monitors via computers. Ultimately it is an intermediate step leading to either (1) browser-centric TVs or (2) TVs, or devices similar to the Apple TV, with their own Apps Store or Yahoo-like widgets. The store would be like the iPhone one, except that its (typically free) applications would enable Web sites like Hulu.com and YouTube to be watched on TV.

3. Product promotion will replace product advertising. The Internet will redefine product promotions to fit into a larger context. Historically product promotions were nearly synonymous with product advertising. The applicable marketing budget was allocated to the agencies and buyers responsible for the creative work and media placement.

Increasingly, sponsors will incorporate their own use of the Internet into product promotion. By enriching their websites, press releases, email marketing, and corporate communications with Digital Media they'll trigger transactions and generate leads in activities that bypass the traditional advertising industry.

4. Ad rolls will become shorter. There are three reasons why Internet Video advertisers will be able to justify accommodating consumer interest in reducing time devoted to disruptive commercials.

First, is the avoidance of ad-time allocations for local network affiliates or cable operators. For example, sites like Hulu don't need a local TV affiliate to stream shows over the Internet. This frees-up about four to five minutes per hour. Second, unlike DVR users, viewers of streamed Internet Video cannot fast-forward through advertisements. Third, Internet Video can employ non-disruptive interactive overlay ads. As a result, the typical hour-long TV show on Hulu takes only 48 minutes -- including six minutes of ads.

5. Advertising industry bypass will promote interactivity. Web sites with the highest "click-through" rates are engaged in triggering transactions. Examples include Amazon.com and iTunes. This is partly because visitors show up to shop, but it also partly reflects good behavioral targeting of ads for suggested merchandise based on the visitor's prior purchases.

As sponsors gain experience using Internet media to connect directly with customers, they'll also concentrate on inducing transactions. Thus, as an indirect consequence of bypassing the advertising industry, sponsors will learn how to increase click-through rates, thereby advancing the state-of-the-art for interactive advertising. In short, Internet advertising and Internet retailing will overlap.

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We have been working recently with ENO (English National Opera) helping them use video to more effectively market their shows. Here are some of the different ways that ENO have been effectively integrating video into their current PR and marketing initiatives:

Digital Opera Guide: Click here

We produced 2-3 min videos of interviews with directors, singers and composers of the various productions in ENO's September - December season. This is a good example of how a digital guide incorporating video and audio can give you so much more than a tradition printed brochure.

Vodcast or video podcast: Click here

Ed Seckerson (writer, broadcaster and chief classical music and opera critic for the Independent) has been producing podcasts for ENO for some time. This Vodcast for ENO's current production of Cosi fan tutte is intended to act as a 'taster' for the full length podcast and give the user a visual reference for the audio.

Production trailer: Click here

This production adds another visual element to backup the digital guide, the podcast and the vodcast. 

We have also filmed full length productions for archive and press material and edited together a punchy summary video for a pre-season press briefing.

ENO are embracing the power of video as an invaluable marketing and publicity asset.

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Web video is still young. It was only about two years ago that web video first made an impact when consumer generated videos captivated web users in a dramatic way.

Today the growth driver behind web video has change considerably. Web video has become a must have marketing resource for all sectors whether for business, communication, information or entertainment and its effect as a communication tool is considerable. For example:

Web video for business

We are finding that testimonial videos for business are a highly effective way of demonstrating and endorsing your product or service with a real life example. Giving the user this opportunity to engage with a real person makes the delivery of your message so much more powerful than simply a written endorsement. For an example check out this testimonial video we produced recently for Platform Computing click here

Web video for online brochures

Digital brochures can really bring your product to life and can do so much more than a traditional printed brochure. We recently completed filming and editing a series of interviews with directors, singers and composers for the English National Opera's September - December 2009 season click here

Web video for information

You can convey a great deal more information through video than you can through written text. We recently finished filming the first episode of LFTV, a news styled information video. The Edge Learner Forum use LFTV as an effective method of engaging and informing their audience of their campaign message and activity click here

Web video for entertainment

Consumers are spending more and more time using their computers for entertainment and the way we produce and distribute content for the new web TV generation is changing. There is a wealth of opportunity out there for entrepreneurs with vision to stake their claim in this huge growth market. Watch this space.

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Interesting article from Media Post Publications:

"Video snacking" describes how millions of people are creating viewing habits around quick & consistent consumption of video. I see evidence of this trend everyday in my work with Grab Networks, based on our server data. And, last month comScore published highlights of its video reporting for November 2008 that support this trend:

146 million people, or 77% of the U.S. Internet audience, viewed online video. Those viewers watched 34% more online videos than they did last year. The average online viewer watched 273 minutes of video, up over 40% vs. the previous year. The average duration of online video is fairly short, at 3.1 minutes per video. And, the audience viewed 87 videos per month on average, 18 more videos per month than last year.  

The last two points highlight the trend of video snacking: "more people, watching more videos, more often."

The average duration of online video was the only metric that remained consistent to last year, up only 18 seconds per video vs. the previous year. This is despite the fact that long-form sites such as Hulu did not exist last year. Americans still have relatively short attention spans when it comes to their online viewing experience.

What is particularly interesting, though, is how women are using video vs. last year. According to the same comScore study as above:

Women watch 41% more online videos than they did last year. They now watch 79 videos per month on average, up 33%. They spend 227 minutes watching online video, up 46%. The average video length for women is 2.9 minutes, vs. 3.4 for men.  

We also see some implications for marketers beyond the numbers. Through research we do to create content for clients seeking to reach women, we've found some distinct patterns in what women are looking for from their online video experience.

Most women have extremely busy lives with work, home, budgets and kids (no new news there). They say that when they are watching online video, they crave content that transports them mentally away from their daily routine and reality. They also look for "information & inspiration" from relatable "sisters & situations." Video content that gives women real information, but that also allows for aspirational narratives, is particularly compelling.

Video snacking is a real trend because online video meets a content need for viewers and is easily accessible to those viewers throughout their day. Marketers and agencies, particularly those that are trying to reach women, would be well served to look for ways to build on this trend to help achieve their goals.

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ComScore, a leader in measuring the digital world, released November 2008 data from the comScore Video Metrix service showing that U.S. Internet users viewed 12.7 billion online videos during the month, representing an increase of 34 percent versus year ago.

More than 146 million U.S. Internet users watched an average of 87 videos per viewer in November. Google Sites attracted 98 million online video viewers, or approximately two out of every three Internet users who watched video during the month. Fox Interactive ranked second with 58.1 million viewers, followed by Yahoo! Sites (40 million) and Microsoft Sites (35 million).

77 percent of the total U.S. Internet audience viewed online video.  

The average online video viewer watched 273 minutes of video.  

97 million viewers watched 5.1 billion videos on YouTube.com (52.3 videos per viewer).  

52.5 million viewers watched 371 million videos on MySpace.com (7.1 videos per viewer).  

The duration of the average online video was 3.1 minutes.

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Article by Web TV Wire

The use of the Internet to deliver television and video content is increasing rapidly, but the infrastructure to do so isn't quite ready to cope with demand. Enter HDi, technology promising high-definition video streaming over existing networks.

Online Video Growth

Online video is big business, and seemingly becoming even bigger every day. But with bandwidth issues and slow Broadband still being the order of the day, is the Web ready for the revolution?

FilmOn.com is a video streaming site just like any other, at least on first sight. But Alki David, its founder and chairman has, along with Rich Crosby, a television engineer from Miami, has developed a technology called HDi which could lift it above its rivals. 

FilmOn HDi    

HDi went live on the site this week but deals have already been signed with high-profile content providers such as Turner Network Television, and many more are expected to be announced soon.      

What's more, the British telecommunications giant, BT, is thought to be interested in the technology. And David and Crosby are also contemplating offering set-top boxes to allow people to watch Internet video on their televisions.    

Founder Speaks 

Mr David told The Times: 

"The way we watch film is changing. People used to dress up to go out to the cinema. Then it was a trip to the video store. Now you're at home with your plasma TV and an Internet connection."

"We're trained to watch what's on the box, but audiences are not fools and it doesn't take long at all to change. The YouTube generation is a good example. You can seek what you want to watch when you want. We're the next step. It's a natural evolution to qualitative distribution."

Connection Issues

Connection Issues Currently, high-definition video such as that now added to YouTube, can be viewed online but often succumbs to huge loading lag or juddering playback due to slow Broadband connections.

The developers claims HDi eliminates these issues using compression technology which squeezes the signal. Despite this, HDi can run over copper or wireless networks, eschewing the need for connections plumbed directly into people's homes.

Revolution or Marketing

Revolution Or Marketing? FilmOn currently offers over 7,000 streaming movies and documentaries, many of which are free. The titles that have to be bought cost £3.99 to stream for 24 hours, or £5 to download and own.

Whether the HDi technology is as revolutionary as claimed or is just being used to promote the video site remains to be seen. But let's hope something is being done to prevent ISPs being able to determine the growth of Web video.

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Blinkx is an Internet search engine for video and audio content, based in San Francisco, that allows searching and classification of audio files,video clips and streaming media. Blinkx's video search engine differs by using speech recognition to listen to the audio component of the video content, and then uses both the phonetic and text transcripts to match content with search queries. blinkx also indexes and searches podcasts and video blogs. It claims to be the largest deep indexed Video search engine with 32 million hours indexed and agreements with over 420 content companies.

Wikipedia

Check out this video on Beet.TV about how professionally produced content is as popular (if not more) with a general audience, through their video search engine, as user generated content (UGC). Click here

Another couple of interesting developments in mobile broadcasting that I wanted to point out today:

MySpace announces that MySpace Mobile users across the globe will now be able to enjoy MySpace video content from their video enabled mobile devices. The first social portal to launch video streaming for mobile, MySpace's beta mobile video initiative is committed to ensuring the best user experience by providing the highest quality video for mobile viewing. Users will now be able to view videos they've uploaded or have marked as a favorite. 

On-demand web video service Joost's new (and free) iPhone application, launched Monday, streams its entire online library of 45,000-plus videos to users on WiFi networks, according to CEO Mike Volpi. A large portion of the library will be available on 3G within a month: "The technology is basically ready," he says. Volpi spoke to me about the launch from London Monday via video Skype.

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I recently spoke with Utarget who are a specialist online advertising network. The following are some interesting facts and figures that they have published:

Online Video Advertising (OVA) is a fantastic new opportunity for marketeers. It combines the audio-visual impact and volume reach of TV with the targeting, interactivity and measurability of online.

The OVA market is rapidly expanding. The latest forecast by Forrester is that it will be worth $7.1 billion in the US by 2012 (a 72% p.a. compound growth rate!). The UK is estimated to currently be about one year behind the US, but growth of OVA in the UK, where online ad spend is already 15% of total ad spend, compared to 7% in the US, could be even more explosive. The average British internet user now spends 164 minutes online each day for personal use, compared to 148 minutes spent watching TV.

Previously online users were bound by their desk-top and dial-up, mainly in task mode. Now, liberated by broadband and wifi, they are more likely lounging with their laptop in the living room. They are more "laid back" than "leaning forward" in their net usage. These laid-back users are consuming more and more video.

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I'm over excited about the launch of the new website, it's been a long time coming! In this area I will keep you up-to-date with anything interesting that we may be doing and share my thoughts and excitement about.. Well anything really, but i'll try and stick to video and web, i will, i'll try.

As you may have already noticed, we are changing our focus and direction a bit at Tmax. We are throwing our passion and dedication into embracing video on the web. We are excited about future media partnerships and about producing cutting edge content specifically for a fast evolving audience and an ever growing multimedia platform.

Month upon month a growing amount of people are spending more and more time viewing video content online. Video on demand is a far more appealing option to viewers than scheduled programming and the internet is clearly the best way for delivering this service.

This move to online is going to be the savour of TV and is going to allow new content providers and new broadcasters the ability to produce content that is fresh and innovative and (like our website) long overdue.

So, i will be keeping a close eye on how this industry evolves and the opportunities that arise and will report my thoughts to you here. In the meantime, enjoy the new site and if you feel like it, why not make friends with monster on facebook? His name is Blue M Onster.

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