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RSSEvery digital consumer uses some portion of the NTE for his news, sports and entertainment content. About half the Xbox and PlayStation game console users recently reported downloading music and video on at least a monthly basis. A recent survey by Universal McCann shows consumers increasingly want on-demand media such as video clips and podcasts. This study highlights podcasts as a tremendously fast growing global phenomenon, with an impressive growth of 133% between June 2007 and March 2008. In fact, approximately 216 million Internet users have downloaded a video podcast, slightly edging out the 215 million who have downloaded an audio podcast in this timeframe.
A major reason for this growth is due to the fact that podcasting is a RSS (Really Simple Syndication)-based media, which allows automatic download of content directly to the consumer's "hard drive" from the smallest portable screen to the largest TV screen. This facilitates "lazy" consumers who want their content on the device of their choice without investing time and effort to actively visit many different sites, and manually electing to download their regularly consumed content. Consumers today can watch podcast shows on the smallest screens via iPod, Sony PSP, Zune and iPhone; on mid-sized screens using iTunes, and Adobe Media Player or on very large screens using Apple TV and Tivo. This emerging NTE finally seems able to fulfill the oft-quoted consumer mantra "what I want, when I want, where I want."
Consumers are ready and waiting in the NTE. Major media companies like NBC News, MSNBC, Fox News Channel, ABC News, BBC, Comedy Central, MTV, VH1, HBO, Disney, CNN, Discovery Networks, National Geographic, ESPN, PBS/NPR, etc. are proactively delivering podcast episodes in the NTE , but much more content needs to be made available for legitimate downloads. Currently, consumers are satisfying their thirst for downloadable content through illegitimate P2P networks, which offer a broad catalog of free premium content. Wider availability of legitimate premium content, without the licensing restrictions imposed by the old TV era, will help to turn the tide against P2P networks and result in accelerated growth of the NTE, while simultaneously unlocking the latent revenue potential of downloads to consumers, who are ready and eager.
Advertising presents the biggest opportunity in the NTE, with marketers finding it the medium to reach the New TV consumers, who are increasingly lost on the old TV channels. In fact, in 2007, U.S. Internet advertising revenues ($21 Billion) became larger than cable TV advertising and larger than broadcast TV advertising. Internet advertising revenue growth rate continues to outstrip all other advertising mediums. The "first mover" content owners are realizing that they can take advantage of this new paradigm and monetize their content in a form
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In television, the advertiser negotiates placement of a particular ad with a particular program or time slot. With online video advertising, the advertiser sends their ad to an ad server, which, in turn, sends it to several likely ad sites. The advertiser generally has no idea of where his ad went, with which videos his ad is being paired nor where in the video his ad is being played.
We're finding the ad reach (video plays and unique viewers), engagement and ad/content interaction analytics especially useful for targeting ad content interaction. Ad reach, for example, gives advertisers a measure of a particular site’s capacity for ads: number of ads / unique viewer / day... It's the kind of advertising exposure an ad salesperson wants to see on a publisher’s site.
What seems to be of particular interest is a viewer engagement analytic with, say, a Top Ad Title report. Advertisers can not only determine how many viewers watched their ads or how many times they watched each ad or how long they watched the ads, but how engaged they were with the ads, as well. This analytic gives advertisers a single number measure (across four key areas: attention, interaction, community and loyalty) of how well their ads are performing. Of course the flip side is that content providers use these same kinds of analytics in order to monetize their advertising dollars. It’ll be interesting to hear where this is all going at Online Video Advertising’s July 22 conference in New York.
imo, the writer is in a bit of a breathless tizzy about "massive" shifts to other viewing platforms etc. In my surveys of the new media terrain I see player after player after new media player falling by the wayside. Virtually NOTHING out there in the new space is making a profitable go of things. Not yet anyway. While there is change happening and certainly there are now more options than ever available for viewing, I think articles like this do a disservice by making it seem like a new era is nearly over and everything old and established is now gone and been replaced by new "stuff" that is fully operational and profitable. Nay I say.
To me what is missing in an article like this is the RATE of change. Yes change is happening. Yes, new options are out there. Yes, new companies are springing up every day. But only a small number of people are new media consumers and their numbers, relatively speaking, are growing slowly. imo we are still in the "early adopter phase". Markets are not yet being made. Sustainable revenue streams are not there yet.
If we consider the average age of viewers I mentioned above, and the likelihood of them being early adopters, I think we might see that the GIGANTO part of our consumer base is still firmly stuck on plain old television, cable, some high speed internet, and a plain old cell phone.
Change is happening and as a content creator/provider I do want it to happen. But after too many disappointments, I have learned that this change is coming SLOWLY. my .02 Jeff Bach
PS Would love to see the source for the claim in the bottom paragraph of the article that internet advertising is now larger than TV and cable advert.
I still think monitizing video advertising on the Internet needs to occur with more friendly non-intrusive methods like www.hotpluto.com.
Billions of dollars are being spent on Internet advertising but not quite video advertising. That will soon occur when the big players stop forcing people to watch so called "relative" content prior to viewing the video they came to see.
Now bring people to a site where the primary reason is to view video advertisements, create an interactive shopping channel for consumers and give them incentives to stay and view the ads--and you have a non-intrusive concept that can be and will most likely soon be, a huge hit. I am betting on it as the first provider of such a site.
I like what Veeple.com is doing to monitize video advertising as it is less intrusive to use the overlays and I like what Animoto is doing to give business owners an affordable solution for creating their video ads.
Laptops, smart phones and the like will keep people plugged into the Internet literally 24 hours a day. With the unlimted reach of the Internet, it should be no surprise to everyone that video advertising on the Net will get incredibly huge!!