The growth of online video consumption is staggering, and continues to show no sign of slowing down. With YouTube and Facebook alone, well over five billion videos are watched every single day.
Given the rapid growth, it’s no surprise that brands and advertisers have quickly adapted to using video ads as the means of reaching and connecting with consumers. To measure their investment in these video ads, most advertisers are using the easiest and most simple way they know - counting video views - but the number of times a video was watched, whether partially or in its entirety, doesn’t actually mean much.
Pre-roll is the most common way advertisers are buying video ads today. However, according to a study by research firm MetrixLab, 94% of viewers skip pre-roll ads. For the few consumers who don't skip the ad, more often than not they are simply ignoring it. So how much weight should an advertiser place on the value of video views?
Last week I attended AdExchanger's Industry Preview 2015 conference in NYC, a gathering of 500+ digital marketers. I attended mainly to gain insights about the larger digital marketing landscape, of which online video advertising is an increasingly important part for advertisers, content providers and technologists.
While there was only one video-specific session, video weaved its way into a lot of what happened on-stage. One session in particular that generated numerous valuable video-related insights was titled, "This is Digital Publishing in 2015" and included Zazie Lucke (Head of Global Media Marketing, Bloomberg), Dao Nguyen (Publisher, BuzzFeed), Troy Young (President, Hearst Digital), Jon Steinberg (CEO, Daily Mail, North America) and was moderated by Wenda Harris Millard (President and COO, Medialink).
I'm pleased to present the 257th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we focus on the momentum of SVOD services, in particular internationally. Netflix shared big news earlier this week in its solid Q4 results that it would expand to 200 countries over the next 2 years and generate material profitability by then as well.
(One quibble that Colin and I discuss is the fact that there are actually only 196 countries in the world, and that includes unlikely targets such as North Korea, Angola, Russia, etc. A Netflix spokesman subsequently told me that their list includes territories and dependencies, though he wasn't able to say how many. Regardless, Netflix plans to be in all countries and territories where it can legally operate.)
Beyond Netflix, Amazon is also on a roll, with its Golden Globes wins, Woody Allen deal, and new movies initiative. And note this Saturday it's running a special on Prime for $72 (vs. the regular $99 rate), which is sure to generate tons of new sign-ups.
Listen in to learn more!
Click here to listen to the podcast (20 minutes, 4 seconds)
Click here for previous podcasts
Click here to add the podcast feed to your RSS reader.
The VideoNuze podcast is also available in iTunes...subscribe today!
Vessel has launched an invite-only beta of its service, on desktops and iOS devices. I was provided access to the beta and I'm excited to share some initial reactions. As a reminder, Vessel was started by former Hulu CEO Jason Kilar and CTO Richard Tom. Vessel's core value proposition is providing exclusive, early access to online video content to super-fans, for a $2.99/month fee. A light ad load is included.
Vessel is a fascinating test of viewers' willingness-to-pay for early access to online video content that's otherwise free. This so-called "first window" represents a completely new business model that could dramatically alter the online video landscape. For content creators, the lure of higher revenue per video view (given Vessel's more attractive ad splits and subscription revenue) seems irresistible to try. And for super-fans, Vessel's $2.99/month fee seems pretty compelling to get early access.