09.24.09
Nearing the tipping point
In this blog post, Jason Glickman, CEO of Tremor Media tells us how we are nearing the tipping point with online video advertising. The point where Online Video is becoming a major part of the media mix.
Yes, online video has garnered enormous buzz – and venture investment dollars – but the medium has yet to secure much more than a sliver of the $65 – $70 billion advertisers spend annually on television spots.
Until now.
Now I would not be so bold as to call “time of death” on the television model. In fact, with all due respect to Julia Louis-Dreyfus, I think reports of TV’s death are greatly exaggerated. Viewership is as high as it’s ever been and the medium will (and should) receive the lion’s share of advertising dollars now and in the near to mid-term future.
But I do believe that when we look back years from now, the period starting from the third quarter of 2009 to the first quarter of 2010 will be remembered as the turning point for online video advertising.
07.03.09
Despite Recession, online video is growing 40% in 2009
In Beet.TV interview, American eMarketer Senior Analysist David Hallerman, believes that online video is becoming a very important medium for advertising. He calls for longer content, thus there could be more ads.
“Overall, online video advertising will grow at a 40% clip this year and for the next few years, outpacing most other ad mediums, Hallerman said to Andy in the interview.
That increase would bring online video ad spending to $1.1 billion this year and $4.1 billion by 2013. Other estimates place total spending at a smaller amount: media agency Magna projects Web video will corral only $699 million this year and won’t reach $1 billion until 2011.
Despite the different projections, researchers agree that Web video will remain a rare bright spot and continue to outpace other mediums. But, the recession is still affecting Internet TV, and its growth this year is well below last year’s more than doubling of dollars, Hallerman pointed out”.
Well… in CityVice we wholly agree, thou the growth will also come from more focused short-form content. Relevancy is the key word.
06.09.09
Advertisers are following Online Video space
A Helsinki based media agency Dagmar, wrote about the use and future of online videos and web-tv. According to them, currently videos are the faster growing advertising platform online, with a market of $4,6 billion in US by 2013. European figures are very similar, as Tekes forecast (in finnish) online video to have €6 billion by 2013.
All these forecast and market researches echo what CityVice has been building on. We have some great news to tell you in soonish. We have come up with a great solution for the market, for media, advertisers and media agencies. Here are some points from the studies:
Online videos are perfect way to continue the advertising campaign shown on TV. One point to note however; most of the spots used in traditional TV does not work perfectly online. So for advertisers it is important to tweak the online ad according to needs. CityVice has the best knowledge on this data, so get in touch. 
- 20% of 16-25 years do not own a TV.
- 40% of 16-25 years are watching TV & videos mainly online
- Online has much better tracking and reporting tool, therefore more meaninful advertising.
- Brand Lifting value is exceptional in online videos
- Click Through Rates in CityVice network is 4.5% – 5%, Interaction rates massive 40%.
- TNS Gallup has started a video tracking service. We are not familiar with this…yet that is
So overall online videos are booming, regardless of the recession times. CityVice is there for you, serving the needs of online video.
05.13.09
2009: The year of Re-Designing the Content Business
The disruptive force of the Internet has finally hit home. A quick look at some trends in this context:
* Newspaper revenues are seriously down (25% in some cases); and magazines and other print media are severely challenged, as well
* Digital music revenues are still going up, overall, but very very very far from enough to stop the free-fall of the recorded music industry, in general (approx 20%, globally, would be my estimate for 2008) *pennies for $$, see below
* DVD sales are declining, worldwide, prices are falling, too – and this will only accelerate next year
* Online video views and audiences are up a lot – but so far pretty much everybody has trouble making any real money with online video
05.05.09
Ad survey
Brightroll’s Video Advertising Report 2009 on Q1 is released.
Some findings:
* 87% of agency executives plan to spend more of their online advertising budgets on video in 2009
* 71% of survey participants view online video advertising as a complementary medium to television
* A majority of respondents estimates CPM prices to be at their lowest, and 20% thinks the price of pre-roll will drop to half what it is today
* Prices of pre-roll continue to fall (early Q2 data suggests this trend will continue)
BrightRoll’s average CPM (cost-per-thousand impressions) numbers from the industry at large confirm the trend:
* Average pre-roll CPM: Q408 vs. Q308 – down 12.5%
* Average pre-roll CPM: Q408 vs. Q407 – down 25.0%
* % of Campaign Revenue from Pre-roll: Q109 (80.6%), Q108 (63.1%)
The drop in CPM pricing “could be a good thing,” because cost may have been limiting growth, TechCrunch observed. If they come down further, say to $7-9 instead of $20, they’ll give TV commercials, which range between $15 (primetime) to $50 (niche, targeted cable channels).
In addition to cost (27%), 31% of agencies cited “lack of targeting capabilities” as a factor limiting online video ad growth. Some 18% said online video has limited reach, and 12% cited ad format limitations. Just 7% thought it was held back by poor inventory quality.
Both pre-roll and in-banner ads were regarded as preferable units, with one out of two respondents saying their use of one or the other depended on the situation and advertiser goals. Reasons for their preference, according to the survey, are guaranteed impressions, overall engagement, and noticeability.
The most surprising finding of the survey was the lack of data and effort around video advertising efficacy; 87% have not performed any in-house research around their online video campaign efficacy.
Asked what they would want to know if they were to conduct research:
* 39% would explore the impact of online video advertising on offline purchase behavior
* 36% would explore changes in purchase intent / brand lift
* 25% would measure efficacy vs. television advertising
04.22.09
Video Viewing Exceeds E-mail Use, Nielsen Reports
Reblogging from Beet.tv: Visitors to video sites now exceeds users of Web-based e-mail, according to a report released today by The Nielsen Company. The study reports on monthly unique visits to various Web sites and online applications.
Video passed e-mail monthly unique visits in 2007. This number is not the total number of e-mails sent or received or videos watch, just monthly visits to the e-mail or video sites.
04.13.09
Online video consumption rising!
People watching online video in the U.S. now watch more than three hours per month, according to new data from Nielsen Online.
In February, video usage was 169 minutes on average, but in March, it rose 13 percent to 191 minutes, Nielsen said.
Also growing fast: the total video streams viewed increased 9 percent from 8.9 billion to 9.7 billion. And the number of videos per user grew 7 percent from about 70 to 74.
Since the number of minutes per user is increasing at a faster rate than the number of videos per user, that means people are gradually moving to longer and longer videos–from 2.4 minutes in February to 2.7 minutes in March.
Google’s YouTube continues to dominate the category, with 5.5 billion videos and 89 million people using the service in the U.S., Nielsen said. Hulu is in second place with 348 million videos and 9 million users. Yahoo is in third place with 232 million videos, but it’s got more users than Hulu, about 25 million users.
03.24.09
Venture Cup Final
CityVice is selected to be one of the 10 finalists in Venture Cup business plan competition. This is great news and actually I don’t really care if CityVice wins, the publicity this generates is what I’m after. Be ready, we are preparing to come out strong!
03.09.09
Young Adults Giving Up TV in Massive Demographic Shift
Reblogging from Beet.tv: Online video is replacing television for consumers 25 years and younger as part of a dramatic demographic shift. Watching video on a personal computer is becoming the principal way young adults consume video.
Adobe business development chief Bill Rusitzky thinks that for many young adults 25 and under, there is a greatly diminished interest in watching television as video consumption is shifting dramatically to the PC, he told me. He says that as this population grows, there will be a big change in media consumption patterns over the next ten years.
While the nascent online video industry is figuring out business models, a big demographic shift is on our side.
