One of the most interesting panel discussions at the recent Video Ad Summit was “Reaching Audiences at Scale: Will TV Succeed in the Digital Age?” which included Adam Gerber (SVP, Client Development & Communications, ABC), Mike Germano (Chief Digital Officer, VICE Media), Melissa Kihara (Global VP of TV & Video Products, Xaxis), Bob Toohey (President, Verizon Digital Media Services) and Lorne Brown (Founder and CEO, Operative) moderating.
It’s no secret that video viewing is fragmenting and linear TV is declining as new video sources proliferate and behaviors change. Still, TV networks are running fast, distributing programs in new ways, investing heavily in data to better enable targeting by advertisers and leveraging social media to better engage viewers.
As Adam pointed out, research suggests that scale in long-form ad-supported online viewing is dominated by TV networks. But as he also pointed out, scale in data and audiences is dominated by platforms like Facebook and Google. This is one of the key sources of tension for advertisers - how to combine the best of both, to achieve scaled, targeted, efficient, effective, trusted advertising in premium video?
The panelists agreed that for lots of reasons the market is nowhere close to reaching this nirvana state. They explored all the reasons why, along with things that are being done to move the ball forward. For anyone trying to better understand how TV is evolving in the digital age and what role it will play, it’s a fascinating discussion.
Watch the video now (39 minutes, 48 seconds).
I'm pleased to present the 237th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we dive deep into the question of whether YouTube is indomitable or vulnerable to new competitors. Colin observes that the 45% revenue split YouTube keeps has opened the door for everyone from Vessel (former Hulu CEO Jason Kilar's startup) to Yahoo to others to approach YouTube stars about better deal terms. Major MCNs like Maker Studios (acquired by Disney) and Fullscreen (rumored to be acquired by Otter Media) are expanding beyond YouTube with their own properties.
However, I don't see much changing with the revenue split, except maybe the largest players getting improved terms. For both established and startup content providers, YouTube offers unparalleled audience reach, publishing tools and monetization. I offer a few examples as proof of YouTube's power: PewDiePie (which now has an astounding 29 million subscribers), Vice News (a pure YouTube news channel now able to take over the NYTimes.com's masthead ad) and Sorted Food (a British startup that has gained 870K+ subscribers on YouTube and now tops its Food category).
For all of these content providers and tons of others, YouTube provides an open, flexible distribution platform unlike anything before it in the media business. Ad splits will continue to be a bone of contention, but YouTube is poised to only get stronger going forward.
(Related, Colin has a complimentary new white paper on how to win and retain OTT customers available here.)
Listen in to learn more!
Here's a great example of how convoluted the media ecosystem has become: if you visit NYTimes.com today, you'll notice that upstart Vice News has taken over the masthead ad position. I check NYTimes.com every day and this is the first time I've noticed the Vice News ad though it's possible it has run previously. Vice News positions itself as "an international news organization created by and for a connected generation" and still carries a "beta" label.
The ad itself runs a series of protest scenes from what looks like Ukraine, with periodic statements interspersed like "You go to both sides of the front line," "Look beyond the headlines," "Follow the story wherever it leads" and "Don't just watch the news." Clicking "Watch Now" starts a loop with similar scenes and statements. There is a click through to the Vice News site on YouTube and ability to subscribe (the counter shows 588,220 subscribers so far).