The idea that monetizing online video is so hard to figure out baffles me; it's not that difficult.
Probably the major reason it seems so difficult is the continuing mindset by some on developing or creating a mass audience on the Web; something that's not going to happen. Even social networking sites really aren't mass audiences, they're simply a bunch of individuals using the services to interact with a smaller group of people.
It's an illusion when the large numbers of people using these services are thrown about. It makes it look like a mass audience, when it's far from it.
Anyway, monetizing online video will definitely be bigger when we think smaller.
Think of a video strategy like a bunch of toll roads. You may only get a small amount from each road, but when they're added together it's a significant amount of money. That's what is meant by smaller being bigger as it applies to making money with Web video.
One example of using that strategy is the Associated Press. They have a huge number of videos online, with each one averaging approximately several thousand views. While that isn't too impressive, when you add up all those together it's very significant money.
If we are in a niche, it can be even better, as usually you'll have a larger number of viewers then the few thousand watching the general news videos of the Associated Press.
This business model not only works as far as gaining advertisers, it's also profitable. You will get more money from quality online video than you will from social networking sites, which only average about 20 cents per thousand impressions (CPM). Online video reaches as high as $80 per CPM. That's an extraordinary difference.
Forget about viral marketing in the sense of getting a one-hit wonder on the Internet for video. You build a solid online video business by creating a series of videos that are watched by a smaller number of dedicated viewers. Think of it like a mutual fund rather than an individual stock.
This is the online video model to use for the vast number of people looking to make a living with video.
Comment Preview