I've just come from a two day session at OMMA (Online Media, Marketing & Advertising Conference) in New York. It was astounding at how much of the focus was on online video. There was great discussion on metrics & measurement, standards, viral marketing & behavioral targeting, but the focus was clearly video.
Driven by the success of User Generated sites like YouTube, Revver, Yahoo, Google Video, AOL UnCut Video, Jumpcut, Grouper, Eyespot, Wallop, Clipshack...the list is becoming endless. Most content is amateur content, some of it is pro-am. All of it is drawing millions of eyeballs.
As a result,more marketers are using video in place of simple banner ads and Google is making a big push toward the technology from both a video display and media buying standpoint. Adoption is growing and the shift of content viewer-ship has just tipped over to the internet with the 18-24 demographic watching more video content online than on TV. The 18-34 demographic is not far behind.
The statistics are showing that online video is more engaging, memorable & measurable, giving marketers a better bang for their buck. Those on the cutting edge are getting in early in order to seat themselves before the internet convergence completes itself within the next 3- 5 years.
The focus for brands is on bringing value to their customers. Videos that bring value and are viewed as authentic are the most requested, watched, and are ultimately the ones being passed around. Viewers are watching the videos all the way through and they have the highest recall...Repurposed television spots running within a banner are bombing in comparison.
Watch two guys from the midwest as they film their discovery of what happens to a bottle of Diet Coke when you drop in a few Mentos. Irreverent & funny. The combined videos have been viewed 6 million times & counting. The combined media value of this to both brands was in the millions and they got it all for free.
http://one.revver.com/browse/Most+Watched#_show_video_27335
As a brand, there is NO WAY that you can afford to not be a part of this right now. Those that are participating are reaping huge rewards by creating their own valuable content that consumers are asking for. But brands beware, this is now a two way dialogue, and you are no longer in control. So, be honest, laugh at yourself, act with humility and you may win renewed respect.
Thursday, September 28, 2006
Tuesday, September 12, 2006
Is owning media the wrong model?
It's no surprise that retail entertainment outlets have been in trouble for a long time. I have not bought a CD myself in over 4 years. So, what do HMV, Virgin, Tower & Blockbuster have in common with iTunes? You still buy stuff.
Why own anything? It's not like we are buying a car that we could recoup our cost on in a few years. The hurdle we have to get over here is purely psychological. Think about it. If I said that you could play any song in the world whenever you wanted via a simple subscription, would you do it? Of course it depends on how much that subscription is. Rhapsody does that now for $9.99 a month with access to over 2 million songs. For music lovers, meaning those of us who buy some music once a month, this will save you money provided the song you want is hosted. It is just a matter of time before the major labels work through the growing pains, along with the digital rights technology enabling us to take our music with us on mobile devices like iPods & cell phones.
I was thinking about all this as I was starting to write about the move to make full movies available for purchase online via download. Aside from the headache of waiting for a file that size to download, the headache of playing some formats on any device will prove challenging for most of us. And then why would I want to buy one movie online for $19.99 anyway, when I can get an unlimited amount of movies from Netflix for the same amount every month? Netflix has it right for the most part, now if they can only figure out a way to not have to ship all those pesky DVD's. Imagine if Netflix had Video on Demand technology to stream movies right to your laptop or TV. Now we're talking! Subscription combined with VOD.
If you can stream something, you do away with the whole rights management issue unless you want to take something with you on a portable device that is not connected to the internet. But it will only be a matter of time before all portable devices are connected via WiFi or WiMax anyway. Imagine never having to store your media? To be able to play it wherever or whenever you want, with or without a Slingbox? How about never having to physically loan something out to a friend, to never get it back?
From the consumer standpoint, engagement should rise as the affordability comes down, while the hard costs of manufacturing, shipping and the realities of retail come down on the corporate side. Unfortunately this will kill the current digital rights management business, as all media will only reside on the servers of those that own it - not necessarily a bad thing.
So, what's my point? My point is, buying anything is the wrong model moving forward. It makes no sense financially for either the consumer or the manufacturer.
If only Netflix was into Music too......if only you could get it online......if only......
Check out these sites if you don't know of them already for some interesting twists on the current model:
http://www.rhapsody.com/
http://www.pandora.com/
http://www.urge.com
Why own anything? It's not like we are buying a car that we could recoup our cost on in a few years. The hurdle we have to get over here is purely psychological. Think about it. If I said that you could play any song in the world whenever you wanted via a simple subscription, would you do it? Of course it depends on how much that subscription is. Rhapsody does that now for $9.99 a month with access to over 2 million songs. For music lovers, meaning those of us who buy some music once a month, this will save you money provided the song you want is hosted. It is just a matter of time before the major labels work through the growing pains, along with the digital rights technology enabling us to take our music with us on mobile devices like iPods & cell phones.
I was thinking about all this as I was starting to write about the move to make full movies available for purchase online via download. Aside from the headache of waiting for a file that size to download, the headache of playing some formats on any device will prove challenging for most of us. And then why would I want to buy one movie online for $19.99 anyway, when I can get an unlimited amount of movies from Netflix for the same amount every month? Netflix has it right for the most part, now if they can only figure out a way to not have to ship all those pesky DVD's. Imagine if Netflix had Video on Demand technology to stream movies right to your laptop or TV. Now we're talking! Subscription combined with VOD.
If you can stream something, you do away with the whole rights management issue unless you want to take something with you on a portable device that is not connected to the internet. But it will only be a matter of time before all portable devices are connected via WiFi or WiMax anyway. Imagine never having to store your media? To be able to play it wherever or whenever you want, with or without a Slingbox? How about never having to physically loan something out to a friend, to never get it back?
From the consumer standpoint, engagement should rise as the affordability comes down, while the hard costs of manufacturing, shipping and the realities of retail come down on the corporate side. Unfortunately this will kill the current digital rights management business, as all media will only reside on the servers of those that own it - not necessarily a bad thing.
So, what's my point? My point is, buying anything is the wrong model moving forward. It makes no sense financially for either the consumer or the manufacturer.
If only Netflix was into Music too......if only you could get it online......if only......
Check out these sites if you don't know of them already for some interesting twists on the current model:
http://www.rhapsody.com/
http://www.pandora.com/
http://www.urge.com
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