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Nov20
The Changing Online Video Landscape

There's only one word that describes where the online video landscape is going, and that's "professional."

What's the reason? That's easy - money. Advertisers will pay more for professional video than they will for amateur.

The context of online video I'm talking about is entertainment in this post; there are other types of online video like learning and training, but that's a different market.

Web video sites are starting to move toward professional video, as more media companies embrace and pursue web strategies for their content.

Not only is it a matter of making more money per video, a large number of advertisers aren't even willing to take the risk of their brand appearing alongside content that could harm them.

Online%20video%20going%20professional.jpg

Blinkx CEO Suranga Chandratillake says the difference between what advertisers pay for professional versus amateur video is huge. For professional content, they can get $60 and over per 1,000 views. For the user-generated fare, they are only able to command about $7 for the same number of views. That's over 8 times more that professional video receives than amateur video.

There's no doubt that over the next couple years online video will be dominated by professional. That's a given.

Does this mean smaller companies with less resources are doomed to irrelevancy? Not at all. What it does mean is we'll have to take our games to a higher level. Quality of productions can be increased without huge investments; but it will have to be increased.

The professional video from major media companies is easy enough to understand, but smaller companies can put out what I call semi-professional video, which must be a step up from user-generated. There will definitely have to be a measurable difference if success is to be reached.

Concerning user-generated video, Matt Sanchez, co-founder and chief executive of VideoEgg, says he sees it changing, as "it will be 10% to 15% of consumption, not 60% of consumption," we see today.


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» Professional Online Video Gravitating Toward Impressions-based Model from TheAlphaMarketer
Last post we talked about online video migrating increasingly to a professional format, although there will be a significant but much smaller percentage of user-generated video than in the past.With that in mind, it's important to look at how adver... [Read More]

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