VideoNuze Posts

  • Discovery and PointRoll Combine Editorial and Ads in "Dig@torial" In-Banner Video Unit

    A new ad unit announced by Discovery and PointRoll and called "Dig@torial" (pronounced "digitorial") caught my attention a few weeks ago, and I've been meaning to write about it since. The unit intrigued me because it dynamically leverages Discovery's video library to enhance an advertiser's message in an easy-to-navigate rich media banner. I hadn't seen anything quite like it before and believe it is yet another indicator of how content and ads are blurring into one seamless experience.

    To learn more, I talked to Michael Aronowitz, VP of Channel Development at PointRoll, which is owned by Gannett, and Brent Spitzer, VP and Leigh Solomon, Manager of Activation, both at Discovery Digital Media Advertising Sales.


    PointRoll worked with Discovery to build a shell in the requested leaderboard and 160x600 skyscraper formats. In these examples 50% of the space promotes Montana Office of Tourism specifically and the other 50% offers opportunities to engage with Discovery content. When you roll over the ad it unfolds to show a mosaic of photos to look at in the Montana space (plus a link to visit www.visitmt.com), and a choice of relevant articles and videos from Discovery's library in its space. A video begins playing in-banner automatically with 4 thumbnails exposed below, plus a link to view more on a customized landing page. The videos play with a 10 second pre-roll for Montana that is frequency-capped.



    Brent and Leigh explained that with the Dig@torial, Discovery works collaboratively with its advertising clients to select the most relevant content to incorporate into the ads. Discovery's team combs through its archive of video clips and proposes a playlist to the client. If the client has its own video that can be incorporated too. The video is fed dynamically into the Dig@torial unit, so it can be updated at any time. The key to making all this possible for Discovery is that it owns all of its programs, so it has a free hand to carve them up and integrate them into ads like these.

    It's still early for the Dig@torial unit, but it appears to be succeeding. Michael said that the benchmark "interaction rate" for the PointRoll network (which is the first time someone interacts with a PointRoll ad) over the last 1 1/4 years is 6.4% with a 14 second engagement time. The Dig@torial press release says that regular rich media ads on Discovery's sites exceed the PointRoll benchmark by 70% and that the Dig@torial ads provide another 50% lift. That would imply an approximately 16% interaction rate and 36 second engagement time, both of which are very strong. Attesting to the Dig@torial's appeal, Brent and Leigh said that Dig@torial campaigns for 8 other clients have also recently launched or are being launched (I combed through Discovery's sites, but wasn't able to find them though).

    Brands and sites are perpetually trying to identify ways to increase user engagement and conversion. By blending client messages with relevant and strongly branded content, the Dig@torial unit is breaking new ground in delivering value to all parties. It's also a reminder that for content providers, it's worth trying to secure re-use rights to programming and then archiving and tagging them for subsequent retrieval. Dig@torial is showing that content's value can extend well beyond its initial airing.

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  • NDS Leads $20 Million Investment in BlackArrow for Advanced Advertising

    Amid all the coverage that online video advertising receives, it's also important to remember that advanced advertising in on-demand and pre-recorded TV continues to evolve. News today that NDS, one of the largest technology providers to multichannel video programming distributors ("MVPDs") is leading a $20 million Series C round in BlackArrow, a provider of advanced advertising solutions, is a reminder of progress. Last week I spoke to Todd Narwid, VP of New Media for NDS and Dean Denhart, BlackArrow's CEO, to learn more about the deal.

    To put the deal and its upside in context, it's important to first understand there's a big difference between how online video advertising against free streams in the open Internet works vs. how advertising against VOD and DVR programs in paid, subscription-based services run by MVPDs works. In the Internet world, there are pretty well-established standards, allowing significant interoperability among sites and ad servers. While measurement challenges persist, the act of getting video ads inserted where they're supposed to be is now pretty straightforward.  

    Conversely, in the MVPD world, the first challenge is just getting ad serving systems approved and deployed. Because ads are served from within the MVPD's own infrastructure, new ad servers must be tested and integrated with existing video delivery infrastructure residing in distribution centers often called "headends" in the cable world. Unlike MVPDs' broadband deployments, much of MVPDs' TV delivery architecture pre-dates the Internet and therefore is heterogeneous and often difficult to integrate with. In addition, there are the tens of millions of deployed set-top boxes which also differ in their capabilities and openness. MVPDs have made significant progress in creating their own standards and in deploying advanced services, but as anyone who's ever tried to implement any kind of advanced service in the MVPD world can attest, it's hard work and has ground down many promising technology start-ups.

    When I first wrote about BlackArrow, on its launch in Oct, '07, I liked its vision of delivering advanced advertising in VOD and DVR programs, but I noted the above challenges gave it a steep hill to climb. Since then, BlackArrow has made progress, deploying with Comcast in Jacksonville, FL and with other operators (though Dean isn't able to mention them due to MVPD restrictions). Still, MVPDs have so many priorities and their resources for testing and integrating new technology are limited. Further, there's a lingering sentiment that MVPDs have only made a half-hearted attempt to really monetize VOD and DVR.

    Given these circumstance, the NDS deal appears to offer BlackArrow a lot of upside. As one of the largest technology providers to MVPDs globally ("conditional access" systems that provide secure MVPD video delivery are its main product line, among others), NDS immediately gives BlackArrow both credibility and significantly improved sales and support reach, particularly outside North America. The companies also announced a joint solution offering, which will be key to realizing actual sales  Importantly, NDS gives BlackArrow improved financial footing for what promises to be a very long-term process of deploying advanced advertising by MVPDs. Conversely, for NDS, as Todd explained, BlackArrow provides the monetization piece of the puzzle that MVPDs need to create business cases to help them justify NDS's advanced technology delivery systems.  

    For MVPDs, who are witnessing the rapid adoption of online video and the threat of cord-cutting down the road, it is essential to be able to offer subscribers more flexible viewing options like VOD and DVR and to give their content partners opportunities to effectively monetize these views. This has been the Achilles heel of VOD and DVR to date, and the scarcity of ad-supported programs in VOD (particularly relative to what's available online) is a direct reflection of this.

    Going forward, the challenge for MVPDs will only intensify as content providers face escalating choices about where to optimally monetize their programming. This is where BlackArrow fits in. Plus the company has always had a multi-platform vision, so once it's enabled for TV and DVR, BlackArrow could also provide a pathway to online monetization, which given MVPDs' TV Everywhere initiatives, is also a growing priority.


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  • Early Bird Rate Ends Today for April 26th VideoSchmooze

    Early bird discounted registration for VideoNuze's next "VideoSchmooze" Broadband Video Leadership Evening on April 26th ends today. The event runs from 6-9pm at the Hudson Theater in New York City and includes open bar (beer/wine/soda), hors d'oeuvres and a full educational program. As an extra incentive, early bird registrants only will be entered for a chance to win an iPad.

    The panel, which I'll moderate, is "Money Talks: Is Online Video Shifting to the Paid Model?" This is one of the most central questions in the online video landscape today and our executive panelists and I will dig into it deeply. Joining me are:

    • Jeremy Legg - SVP, Business Development, Turner Broadcasting System, Inc.
    • Damon Phillips - VP, ESPN3
    • Avner Ronen - CEO and Co-founder, boxee
    • Fred Santarpia - General Manager, VEVO

    Click here to learn more and register for the early bird discount

    We'll also have a 15-minute presentation by Emily Nagle Green, President and CEO of Yankee Group, a leading industry market research and consulting firm. Emily is the author of the recently published book, "Anywhere - How Global Connectivity is Revolutionizing the Way We Do Business." Emily has tons of great data from Yankee's research about consumer preferences and what's really happening in the market.

    VideoSchmooze is a terrific opportunity to expand your network and meet the panelists. Some of the companies represented at VideoSchmooze include HBO, Scripps Networks, NBA, ESPN, 5Min, Comcast, AT&T, Answers.com and lots of others.

    Early bird discounted tickets are available through today for $65. If you're planning to come, register now and save (plus you get a chance to win the iPad). If you're planning to attend with colleagues, more deeply discounted "5-Pack" and "10-Pack" tickets are also available.

    I look forward to seeing you on April 26th!

    Click here to learn more and register for the early bird discount
     
  • Is "Cord-Cutting" a Big Deal or Not?

    "Cord-cutting," the idea of disconnecting your cable/satellite/telco video subscription service in favor of online viewing only, got renewed attention this week as new research from a Canadian firm named Convergence Consulting Group said that 800,000 U.S. households have unplugged in the last 2 years. Though that number is a teeny-tiny fraction of the population that still takes subscription TV, the question begs, is this an early indicator of rampant cord-cutting to follow, or a blip that's unlikely to get that much bigger over time?

    Back in the fall of '08 I asserted that for most people cord-cutting isn't going to be happening any time soon for 2 key reasons. First, that it's still relatively hard for most mainstream users to connect broadband to their TVs, which is an essential ingredient to long-form viewing. There's no question that this has gotten easier since, and will only get easier still. Eventually broadband to the TV will be ubiquitous. But until it is, cord-cutting raises technical and comfort challenges most people don't want to confront.

    The bigger obstacle to cord-cutting is the loss of cable-only programming that isn't available for free online. Back in '08 the concept of TV Everywhere wasn't yet around. Now that it's beginning to rollout (albeit painfully slowly), it's evident that the cable ecosystem is determined to see cable programming remain accessible only to those who maintain a paid subscription.

    My take is that cable programming is the key firewall against cord-cutting. For some, losing cable programs won't matter. But my guess is that for most, losing their favorite cable programs by cutting the cord will be a non-starter. As Conan's move this week to TBS illustrates, increasingly the most distinctive shows are on cable. And note the "firewall within the firewall" is marquee sports programming on channels like ESPN, TNT and Fox Sports, which isn't going online for free ever. This precludes virtually all true sports fans from cord-cutting.

    Net-net, the debate about cord-cutting's potential needs to focus on how much value audiences place on their favorite cable programs. If it's a lot, then little cord-cutting will ensue; if it's a  little - and there are suitable free online substitutes - then we'll see lots more cord-cutting.

    (Note - all of this is fodder for our VideoSchmooze panel discussion on April 26th "Money Talks - Is Online Video Shifting to the Paid Model?" Early bird discounted registration expires today!)

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  • Conan's Jump to TBS Shouldn't Really Surprise Anyone

    Conan O'Brien's decision to move to TBS made a lot of headlines this week, with lots of reactions along the lines of "Conan's going from broadcast to cable? Huh?" and "Geez, TBS of all places?" But dig a little deeper and Conan's move shouldn't surprise anyone, as it represents yet another blurring of the distinction between broadcast TV and cable TV.

    When it comes to bidding for expensive talent like Conan ($12 million/year reportedly), cable is at a big advantage to broadcast. The recession and ad spending downturn has highlighted the benefits of cable's dual-revenue stream (monthly distributor fees + advertising) model vs. broadcast's ad-only approach (which is further motivating broadcasters to seek retransmission consent payments). Last summer I wrote that the improving quality of cable's programming is becoming more obvious, as cable garnered 272 of the 487 Emmy nominations. This is a trend I expect will continue.

    Distinctive cable programming - that isn't available for free online - is the major firewall against cord-cutting (see above for more on that this week). More than that, maintaining a valuable subscription offering, whether through cable, satellite or telco providers, is essential so that the downstream creative and production workforces that support on-camera talent like Conan can continue to thrive. Cord-cutting may seem enticing to many, but the reality is that if it becomes a groundswell, you can likely say goodbye to seeing top-tier talent on TV at all.  

    What do you think? Post a comment now (no sign-in required).

     
  • David Pogue's "Video Wall" Explained

    If you're a David Pogue fan like me, you were also likely wondering how he pulled off his recent "iPad Town Hall" which featured him interacting with 20 people in what appeared to be a live "video wall." The town hall video, which runs about 5 minutes is classic Pogue - funny, educational and fast moving.



    This week Pogue shared the details of how he built the "video wall" which actually wasn't live, but was instead a mosaic of scripted QuickTime videos he solicited from his Twitter followers. He then embedded them all in a Keynote presentation and through some editing flair created the illusion that it was live. The result is very slick and showcases what a relative amateur can produce with some creativity and persistence.

    What do you think? Post a comment now (no sign-in required).
     
  • VideoNuze Report Podcast #57 - April 16, 2010

    Daisy Whitney and I are pleased to present the 57th edition of the VideoNuze Report podcast, for April 16, 2010.

    Daisy and I are back from the NAB Show in Las Vegas and this week we share 2-3 key takeaways. For her part Daisy was impressed by the energy and mood at the show which was significantly brighter than last year. Daisy heard from a number of people contemplating new ventures, a big departure from last year when most people were hunkered down. Daisy shared further insights about specific companies she interviewed.

    Then I talk a little more about my reactions to the Level 3 - Silverlight 3D streaming demo I saw in Microsoft's booth, which I wrote about on Tuesday, and also the new local TV station JV for mobile DTV that was unveiled at the show and which I wrote about yesterday.

    Click here to listen to the podcast (14 minutes, 0 seconds)


    Click here for previous podcasts

    The VideoNuze Report is available in iTunes...subscribe today!
     
  • Broadcasters' New Mobile DTV Joint Venture Offers Potential

    One of the more interesting things coming out of the NAB Show this week was the announcement by a dozen local TV station groups of a new mobile direct TV content service intended to reach 150 million Americans. The service, which is still unnamed, is backed by Belo, Cox, E.W. Scripps, Fox, Gannett, Hearst, ION, Media General, Meredith, NBC, Post-Newsweek and Raycom. No details on programming were revealed except to saying local and national news, sports and entertainment would be included.

    For the last several years, it's felt as if local broadcasters have been on the short end as online and mobile delivery have gained steam. One looming threat has been from broadcast network partners, who have increasingly embraced online distribution, which threatens to shift audiences from consuming programs through local affiliates' stations to consuming at the networks' web sites and aggregators like Hulu.

    More recently, the FCC's  National Broadband Plan, with its "voluntary" spectrum reclamation would transfer valuable bandwidth to mobile carriers - a move that was quickly perceived as further marginalizing local broadcasters' role in the digital ecosystem. If this wasn't enough, the launch of Apple's iPad highlighted the growing role that consumer electronics devices - and the apps that are built for them - will play in empowering users to search and access content from many new sources, further fragmenting traditional broadcast audiences. All of this has unfolded against the recession's backdrop, which has suppressed consumer spending and local ad spending.

    Now, with the new joint venture, local broadcasters seem to have the beginnings of a cohesive plan to show that they too have an important place in the digital era. Throughout the NAB Show various industry executives repeated the mantra that local broadcasters play a vital role in news, weather and emergency information, a not-so-subtle reminder to policy-makers that broadcasters shouldn't be shunted aside in favor of shiny new gadgets.

    Still, it's early days for the venture and for mobile DTV in general. Next month a big DTV trial in Washington, DC is scheduled using the ATSC-M/H technical standard. The new JV doesn't have any agreements yet to put DTV tuners in handsets or with carriers for integration. Larger questions of governance still loom as well. Broad industry initiatives like this often suffer from members' differing goals, tactics and motivations. An even larger question is consumers' desire for the mobile DTV format. With countless viewing options already, and more coming every day, local stations' DTV efforts will be in a competitive battle for attention.

    Big questions remain about what the new JV's ultimate impact will be, but at a minimum it at least appears to show that local broadcasters are getting serious about how they fit into the digital video ecosystem.

    What do you think? Post a comment now (no sign-in required).