Web Networks Thrive With Help From Consumer Packaged Goods

As TV broadcasting networks continue to struggle, a new breed of Web-based broadcasting networks appear to be thriving.

Late last year, amid dire economic conditions, BBE--the Web video network formerly known as Broadband Enterprises--launched "Jen and Barb, Mom Life," an original Web video show by and for moms.

Since then, the show--sponsored by various SC Johnson brands--has delivered more than 24 million impressions, 13 million user-initiated plays, and over 9 million unique views.

"The driver of our business is definitely consumer packaged goods," said Matt Wasserlauf, CEO of BBE.

In other words, about 1.5 million users are watching each episode of a brand new online video show without "name stars" or network branding. "Online programming has been explosive for us," Wasserlauf said.

Along with SC Johnson, the new company claims roughly 200 brand partners, including Coke, McDonald's, AOL and Toyota. AOL, for one, paid over $1.5 million to sponsor one of BBE's programs.

"We're also expecting our Vindico service to grow exponentially in '09 thanks to the demand for more accountable advertising."

Vindico is BBE's campaign management system, which provides full control over the deployment, assignment, scheduling and optimization of video for clients.

Newer to the field of Web video distribution networks is Digital Broadcasting Group, launched in 2007 by Chris Young, the co-founder and CEO of online rich media video provider Klipmart (since acquired by the now Google-owned DoubleClick.)

The DBG video network already reaches about 105 million monthly unique visitors, according to comScore, through partnerships with over 2,600 sites and online properties.

"We are on pace to triple our revenue from last year," said Young. "Apart from maybe Broadband Enterprises, no one else is providing this level of frequency and reach online."

DBG has recently worked with clients such as Wal-Mart, Microsoft Xbox, and Diet Coke to create and distribute original branded entertainment content.

Young also takes particular pride in the fact that DBG can produce its own content in-house. HBO and VH1 television writers and producers Joseph Gomes and Gregg Backer handle that part of the business.

To continue its dramatic growth, the company is also going after big-name talent. AJ Vernet and Damon Bethel recently joined the company as SVP of West Coast sales and EVP of strategic planning and business development, respectively.

Bethel came to DBG from Starcom MediaVest Group, where he served as digital director, leading the development of strategy for Coca-Cola's portfolio of brands across all digital media touchpoints.

Vernet, who once worked with Young at Klipmart, most recently headed up Kush TV, a branded entertainment company that was purchased in late 2008.

There is no doubt, however, that even Web-based broadcasting networks face challenges going forward.

"We still have to make this medium easier to understand," said Wasserlauf.

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