ENDAVO BLOG

Takeaways From Streaming Media West & Online Video Platform Summit ’09: Part 2

By Brent Grablachoff

Last week I shared a few key insights gleaned from attending the recent Streaming Media West and Online Video Platform Summit ’09. I wrote on 3-Screen Delivery and Mobile Video Delivery. Today, I will be concluding with Paid/Premium Content, Detailed Video Analytics and Live Streaming.

Live Streaming

Most visitors to our Endavo booth were overwhelmingly interested in streaming live video. I'm watching as live streaming gradually becomes a higher priority. These days, we live in a world where people want to see real events, right NOW. The demand and need for Video on Demand (VOD) cannot be ignored.

Paid/Premium Content

Because businesses are in the business of making money, many are starting to notice ways to monetize their online video content, too. This question is on everyone's mind, "Why create a Web site offering high-quality and premium video content, if we're just going to give it away for free?" That’s why conference attendees were asking us about video monetization models, and if Pay-Per-View offers a better ROI over Subscription or Membership models.

While there is no universally accepted single “best” online video monetization model, there are multiple ways available that will offer an effective combination of revenue generating tools for your business. We feel it’s crucial that each businesses assess and decide what’s important to their audiences – then apply a monetization model that best achieves their specific business objectives.

Detailed Video Analytics

Without a goal or plan, your business is like a ship without a sail. Because it’s important to track and measure results, I was especially interested in the conference’s discussion on ‘Analytics & Measurements’. At Endavo, we believe creating deeper analytics will become more of a development priority in the digital media revolution. Metrics such as total videos views, most watched videos, and what’s generating buzz are helpful, but you should demand more. The Streaming Media West panel predicted in 2010 we’ll see more detailed analytics, such as: How long did the user view the video? Did they skip through the ads? Did they watch the video in its entirety? Where did they drop off?

Also, as discussed, we’ll see more proven tracking methods for geographical drill-downs and metrics showing video viewership on a global, country, state and city-wide radius. While overall online video technology continues to evolve, we believe the capability to dive deeper into online video viewership dynamics will help companies realize better ROI, monitor and track marketing and sales goals, and appreciate the contribution of online video to their business mix.

Conclusion

Online video has come a long way the past 5 years – but we have an even longer way to go in the next two. Technology continues to evolve, new companies are launching every day ... and best practices continue to be implemented.

I admit that I can get wrapped up in the capabilities of online video, and the myriad of services offered ... and why our platform is so great. But it’s important to not get too focused on the array of technical services available throughout digital media. You should instead do your research, stay up to date as best as you can and ultimately find solutions that solve problems and make sense for your business.

And most importantly, develop a solution that provides your audience an opportunity to engage, interact and consume ... and keep giving them reasons to come back for more.

Lessons from Internet Summit ’09: Live Streaming, VOD, and Ad Placement

Yeah, the Internet turned 40-years-old this year, prompting a birthday article by the Guardian, but it’s far from being “over the hill” – at least, not at this summit.

More than 75 industry experts and Internet thought leaders from companies such as Technorati, Pandora, ESPN and Google, convened at the second annual Internet Summit earlier this month in Raleigh, N.C. And this year, it was streamed live—thanks to Endavo Media.

One hot topic discussed at the conference was online video solutions for businesses, especially live streaming versus on-demand.

Here's a quick look at the main discussions at the summit:

Live Streaming: Live streaming allows content producers to engage an audience with an interactive environment. This includes chatting, commenting and social media opportunities that allow the audience to really feel like they’re a part of the event. It also creates a feeling of exclusivity. The audience feels as though they’re the “first to see” or that they’re part of the “in-crowd” with live streaming events. The key take-away for businesses: It’s important to focus on gaining a large amount of content and then up-selling to a paid platform.

On-Demand: Content providers looking at on-demand video need to focus on monetization of their content (especially longer form content). Analyze and measure the value of the content. Plus, focus on premium content, higher-end media/broadcasting companies. 

Mix It Up: Luckily, businesses don’t have to choose between the two. Endavo Media provides a platform that allows both live streaming and on-demand video. The next Internet Summit lesson, however, is making money from all your work.

Monetization: Content providers don’t necessarily need to choose ad networks. This allows businesses to 1) have a personal relationship with the advertisers, 2) only include relevant ads to their sites, and 3) have greater control over the where/when of ad displays in order to keep customers from being blasted by unnecessary advertisements. Also, consider playing video ads on the same media player that viewers are watching VOD. This keeps the viewers on the company’s site (and NOT the advertiser’s site).

A strong Internet video strategy starts with research, followed by some trial and error to find the best overall solution for your content and audience. We look forward to covering future events and conferences to gather the latest opinions and trends in online video. Until then, Happy Birthday, Internet! 40 years and still going strong.

Do you Hulu? Combo business model for monetizing online video

By Jason Anderson

If you’re a content owner or aggregator, you have probably thought about the different ways to monetize. You may be thinking, “Should I use an ad-based or subscription-based model?” But, what if I told you that it’s not an either-or situation? What about using a combination of both? Your distribution strategy would likely include the following coordinated strategy: advertising to give free content to guests and subscription-based memberships for premium content.

Consider two recent happenings at online video giant Hulu.  

Hulu.com has famously gathered an audience in the tens of millions via premium content from top networks offered in a visually engaging, easy-to-navigate site monetized through video and banner advertising.  Now, Hulu is developing new tools to allow viewers to interact with advertising more significantly and laying the framework for subscription-based offerings set to debut in some form in 2010.   

In spite of the massive bandwidth costs associated with showing nearly 500 million video views per month, Soleil Securities analyst Laura Martin says Hulu is well on its way to profitability.  Their success demonstrates the viability of delivering quality content in a quality environment.

Perhaps your revenue sweet spot is in providing ad-supported content free to guests and members, plus exclusive content for paid members, all showcased in a custom-branded environment, just like Hulu. The possibilities are endless when you use all the capabilities of your own online video platform. And Hulu’s efforts should act as encouragement as you consider various ways to generate revenue from your content. 

Mom was right. It’s nice to share.

By Pete Contardo

Whether it’s some sick zombie clip, a cute puppy video, or another one of those fake viral commercials, today’s online video scene is full of content for all types of people. But where’s the fun in finding a cool video and then not being able to share it with anyone?

Research shows that 1/3 of all online videos are shared, according to a study by Yahoo! and other large media companies. So, it still baffles me when I come across a great video on a site that doesn’t support sharing or other social networking features. Now, more than ever, viewers don't want to keep their favorite content a secret. They just can’t wait to share it, post it or mash it!

Best of all, great things can happen when a viewer shares your video. They become an ambassador for you, strengthening not only their relationship with your brand, but also engaging others to do the same. You can effectively reach more of your target audience, in a more direct and personal way. And any of their “friends” who receive an invite to view your video are more likely to accept the message because it came from someone they trust, and in turn they learn to trust you. Similarly, if someone embeds your video on their site or social network page, it can have the same effect by exposing your content to their friends.

These days, customers have come to expect sharing features with their media content, especially when it comes to video. So, make sure your platform has the right features. Before you know it, your viewers will be sharing their favorite videos and you can just sit back and enjoy the benefits. (But sometimes it doesn't hurt to remind your customers to share, just like Kelvin G. does before one of his clips...)

So, be nice and remember what your mother taught you-- and make it easy for everyone to share.

Choosing an Internet TV Platform that Works for You

By Shaun Pope

A few posts ago, Paul D Hamm revealed the big secret of a successful online video business – finding multiple monetization models. But an appropriate video publishing and distribution platform is also crucial to execution and success of any online video monetization strategy. So, here are a few things you need to consider when choosing an online video platform that works for you:

Monetization options. Your online video platform should allow as many monetization options as possible. Video and banner advertising, sponsorships, subscriptions, pay-per-view, affiliate programs and e-commerce should all be easily available for implementation.

Control. When you put your video on a free hosting site, giving up control is an inevitable trade-off. Having control over your audience, player/website branding and advertising options means you choose how to make money with your online community.

Analytics and Member Data Management. Comprehensive video analytics together with community members’ personal information provide a valuable insight into your audience and make a great asset for negotiating deals.
 
Interactive and Social Media Features. Over the past few years, interactive features like commenting, sharing, rating, voting, user-generated uploads and live chat have become an expected part of user experience. These tools are also essential for building online video communities. Your platform should have features that make it easy for your content to go viral and for you to monetize your videos wherever they go.

Live Streaming.  Some monetization models like pay-per-view and subscriptions work best as ‘tickets’ to live events,  especially when it comes to sports, music, entertainment, news training and education.  

Tell us what’s important to you in an online video platform. And good luck!

Liquid video. Wow, pretty cool term, huh?

By Paul D Hamm

I became aware of it from Shane Steele (Tremor Media) at a recent AMA Atlanta Luncheon. The term’s based on video being metaphorically “liquid” ... or, “free-flowing” over various networks (broadband, TV, mobile). I thought it was a smart and accurate way to look at what’s happening with online video and social media, so it got me thinking that video is actually more of a “liquid asset” generating real ROI and revenue—liquidity (okay, yeah, that’s my financial background shining through).

Let’s briefly expand on both definitions ...

Liquid Video Strategy
Online video content becomes liquid when you enable it to be “free-flowing” with your audience and community (note: free-flowing doesn’t mean “free-for-all”). Don’t restrict video and rich media to a single screen or destination. Let it flow to your website, social networks, mobile devices, television—all the screens your audience wants to access.

You can also create liquid video by letting your audience, community or third-party producers/aggregators contribute to your video and social media strategy. Obviously you need an Internet TV Platform to pull content from multiple sources into a cohesive strategy and experience. Engaging your audience by providing interactive features like commenting, rating and sharing and allowing your audience to take your content viral via the social web greatly enhances the liquidity of your online video.

Your Internet TV Platform must allow video to become liquid, while not compromising control over quality, distribution, audience relationships or brand integrity. This is why publishing video on YouTube and MySpace is a poor business strategy for most brands or content owners. Having the right control and tracking mechanisms is critical to maintaining brand integrity and to launching a distribution engine that can be properly managed and monetized—which gets to my second definition of liquid video.

Liquid Video = Monetization
Once a successful liquid video strategy has been deployed, a brand or content producer can create the best liquid of all—money and ROI (as we blogged here before, there are multiple ways to monetize online video – ads, sponsors, subscriptions, pay-per-view and syndication). You can answer a lot of challenges every industry is facing by offering real access dispersed but targeted, liquid but controlled (and tracked), distribution to a target demographic. 

The key to pulling together these two definitions of “liquid video” is finding right tools and systems (an Internet TV Platform) that enable more ways to get your content in ... more ways to get your content out ... let your audience interact and take you viral ... and lastly, to monetize your online video. Do all that and you’ve created Liquid Video.

A Liquid Video strategy can be developed for any small- to medium-sized enterprise who’s serious about monetizing their online video. Tell us what you think.

AMA Tampa Bay - Digital Marketing Conference

By Shaun Pope

On March 6th, Peter Contardo and I will be speaking at the American Marketing Association (AMA) - Tampa Bay, Digital Marketing Conference. There's a great lineup of speakers, all focused on digital media and emerging marketing strategies. Follow @AMA_Tampa_Bay on Twitter.

Specifically, we’ll be presenting on how brand marketers and content owners can monetize their video content online. We'll be providing specific cases that will include a joint discussion with one of Endavo Media's partners, Tampa Digital Studios. The session will cover online video advertising, sponsorship, subscriptions, branded entertainment, pay-per-view and more. We’ll also talk about the technology requirements needed to support these emerging business models.

If you want to join us, please register here. A full-day pass is only $175 for AMA members... and worth every penny. Other speakers include Albert Chen from Google, Deana Goldasich, Peter Radizeski and many more.

The event is very participatory, so bring your questions and opinions. See you there!

Big Money-Making Secret: Multiple Online Video Revenue Streams - Part 1

By Paul D Hamm

As a brand marketer or online content producer, it’s time to get serious about making money with online video. More and more consumers today use the web to “watch TV,” get informed, shop and connect with their friends and business colleagues. The question is, how to make money with your online video?

At Endavo Media we believe it’s not just about ads vs. subscription; it’s more about finding MULTIPLE ways to make money with your online video. The real secret to online video and social media success is generating multiple revenue streams.

So, here are just a few ways to make money with your online video destination or community:

1. Advertising – Great content doesn’t necessarily find an audience, typically the audience has to find it. At Endavo, we see successful web advertising strategies being deployed by large and small content producers alike. With the right Internet TV platform you get more advertising opportunities, and you can monetize online video with pre- and post-roll advertisements, overlay ads, banners associated with video ads and/or main content, site banners and total sponsorships. A big key here is to not just look at a singular advertising model. Find a platform that lets you mix it up to provide better overall user experience and increase impact by giving advertisers more options as to where and when their ads are displayed.
   
2. Sponsorship –In this model, the event sponsor pays a lump sum to have exclusive (or preferred) rights to all the advertising space on the community video destination site. Video advertising , branded entertainment, product placement in video, banner ads, web page branding, video player branding, content (even UGC) contests are ways to create a sponsored community that provides a great monetization model for the content/community owner, and is a powerful, targeted  advertising medium for an advertiser. 
   
3. Subscription – At Endavo we’re seeing subscription models being executed successfully for premium-quality live and on-demand content.  For high-quality content targeting a particular audience, such as American Powerboat TV, audiences are inclined to pay a reasonable fee to access exclusive premium content. The best subscription model strategy includes some amount of free content followed by professionally produced, exclusive content for subscribers.

Sure, the debate continues over whether the free content (supported by advertising) or paid content (subscription or pay-per-view) models will prevail—and Endavo will continue weighing in on that debate. Rupert Murdock’s strategy with the Wall Street Journal believes in subscription-based content, while Chad Hurley, YouTube co-founder, says even in times of economic downturns the advertising industry will continue pushing more and more dollars towards online video. But I really want to emphasize that content owners need to find multiple ways to make money with their online video destinations and communities.

In my next Endavo Media Blog post I’ll address pay-per-view, affiliate networks and paid syndication, while also sharing key success strategies for monetizing online video. Now go do more and make more!