People love commercials…it’s true!

Every time the TV is on or the internet movie is rolling, everyone knows not to bug me during “commercial” time. I once thought that I was part of a small sect of “commercial” lovers, commenting on them, critiquing them, or simply sitting back and enjoying them. Well, I recently discovered an article that claims there are many more “commercial lovers” out there…

As I was browsing the AlleyInsider Blog for some good material and up-to-date news, I came across Video Ad Companies: People Love Watching Video Ads! …That’s right! 3 Companies support the idea that someone “out there” manages to make it through the commercial. Now I’m not going to go as far as to say they enjoy the commercials as much as I do, but at least they’re not flipping the channel any-time soon. Check out the stats below as quoted from AlleyInsider:

  • Tremor Media says […] only 20% of Web video watchers give up and leave when confronted with the pre-rolls it serves up. Or, as Tremor is putting it in a release later today, 80% watch the ads all the way through. […] [A]udiences are willing to accept pre-roll advertising in exchange for content they want, on demand.” And Tremor also says that its stuff is so good (it measured 65 million ad impressions across 100 different ad campaigns) that the bail-out rate didn’t change if the ads were 15 or 30 seconds long.
  • Break Media is claiming an even higher “completion rate” — 87% — for its pre-rolls, which includes a whole lot of user-generated video. Break’s sample was a lot smaller than Tremor’s — 5.85 million impresssions. But we’re equally skeptical of both numbers. We’re certainly not anti-advertising, and we will indeed sit through some pre-rolls, when we know were getting good stuff we want to see. But there’s no way we do that 8 out of 10 times.

Now they haven’t exactly pinpointed WHY, but the money is there and that’s usually all that matters in order to convince the public that this form/method of advertising works. As for my commercial loving companions, our time to shine is just over the hill. Beware!

Posted under Online Video

This post was written by Joshua Russak on August 18, 2008

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Online Video’s 2008 Predictions Down By 65% to $505 Million

YouTube, which accounts for more than half of all video views, will generate a mere $200 million in sales in 2008…yet they still are among other “losers” failing to be a profitable company in the Online Video space. According to Dow Jones investors have spilled more than $8 billion into Online Video. Here’s some #’s (though they don’t add up to $8 Billion) that give you an idea of Online Video Spending over the past 3 years:

2005: $1.764 billion
2006: $2.117 billion
2007: $2.009 billion
2008: $453 million (Q1 only)

These numbers come primarily from AlleyInsider’s reporting on the Dow Jones VentureSource, which provided them with a running tally of venture investment in online video startups since 2005. The dealflow includes “video infrastructure (Brightcove), ad platforms (YuMe), service providers (VideoEgg), and consumer sites (FunnyOrDie, Veoh, Joost, etc). Between 2005 and Q1 2008, that tally is $6.06 billion. Add in one big acquisition — the $1.65 billion deal for YouTube ($1.65 billion) — and a few smaller ones — like Sony’s pickup of Grouper/Crackle for $65 million — and the grand total comes to $8.06 billion. Keep in mind this doesn’t include any of the billions invested in Europe or in China.”

Now according to a more recent AI article, Sorry, Investors: The Online Video Pie Just Shrank By 65%, according to eMarketer, “In February, the Web prognosticator said YouTube et al would sell $1.4 billion in ads in the U.S. this year. Now it says it was overzealous: It has ratcheted its estimate back by 64%, to $505 million.”

I really liked how AI broke down the $505mm and decided to copy and paste the text for all to see:

…here’s how a $505 million market would break down this year:

That means the remaining $215 million, then, is divided between the following:

  • Big media companies like ABC/Disney, CBS, Time Warner, Yahoo, News Corp/MySpace, NBC U, and Viacom.
  • Video aggregators like Veoh, Joost, Metacafe and DailyMotion
  • And ad networks like Brightroll, Tremor, Husky and Broadband Enterprises

It’s really hard to see Online Video draw back it’s yearly quote predictions for the 2nd time this year, but there’s hope yet in terms of IAB taking yet another step closer to determining Online Video perameters. This is the first I’ve seen of it: Digital Video Ad Measurement Guidelines by the IAB. 3 CATEGORIES all committed to Online Video, while I find it interesting to see E-Mail only has 1 guideline. EVEN MORE INTERESTING, is the fact that it Digital Video is now a whole new category in “Emerging Interactive Platforms”, along with Games Advertising, Mobile and User-Gen Content & Social Media. I’m interested to see when these will be in full completion and what will take their place as “Emerging”. Either, I hope the best for Video and look forward to seeing YouTube lockdown their Ad-Model and finally bringing in the big bucks!

Posted under Online Video

This post was written by Joshua Russak on August 15, 2008

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AlleyInsider says NBC’s Fault US Blew Gold

OlympicNBC.jpg

I was in search for an article to “blog” about and came across a rather interesting post by AlleyInsider’s creater himself, Mr. Henry Blodget. It’s a big statement, but they claimed It Was NBC’s Fault US Gymnasts Blew Gold Medal. I mean, I personally thought it was because team captain Alicia Sacramone lost her balance on the “BALANCE BEAM” and floored her “FLOOR ROUTINE” (puns intended).

Well, Martha Karolyi, the team co-ordinator, was quick to blame officials at Beijing’s stadium as quoted from this Yahoo article, US clears Beijing officials of blame for gymnastics loss.

Karolyi said immediately after the US loss to China that officials at Beijing’s National Indoor Stadium disrupted Sacramone’s beam routine by delaying her performance for an extended period, breaking her concentration

“First they called her name up, then they did not even put her name up even though the Chinese had finished … (it was) totally unusual holding,” she said.

“She was mentally prepared and then she had a mental break, then after not doing the job, the beam, on the floor exercise her concentration was bothered.”…

Karolyi insisted the world champion US team would have won gold if Sacramone had not become unsettled.

Well, AlleyInsider did it’s investigative work and found the heart of that article, quoting Alas: It was NBC’s fault…

USA Gymnastics president Steve Penny said the delay involving Sacramone’s beam routine happened because of scheduling issues related to the Games’ television feed.

“It’s a normal television thing that’s typical in international competition,” he told AFP.

Well, in the end, there’s really no need for blame! China still out-did America by over 2 points and on their home-turf. China’s first time team-gold-medal in this category is worth clapping for and everything else aside, Sacramone herself didn’t play the blame game, saying “I think everybody knows there’ll be good days and bad days, I just wish this was a good day for me.”

Posted under Online Video

This post was written by Joshua Russak on August 14, 2008

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MobiTV hits 4MM subscribers, but the world’s not ready to “pay”!

Article By: Joshua ‘The Red’ Russak (Red@aclion.com)
Originally posted by me on my company blog: http://blog.aclion.com/2008/08/mobitv_hits_4mm_subscribers_bu.php

MobiTV global TV and digital radio service, recently stated in July 31st press release MobiTV Soars Past Four Million Subscribers it now has 4 million subscribers to its mobile TV and radio services, available in more than 15 carrier networks, including giants AT&T, and Sprint. The Service costs $10 monthly. Their competitors include Verizon, Modeo and Joost and Babelgum (on PCs).

That’s great for them and better for the mobile and online video industry, but According to Silicon Alley Insider article How Big Is The Market For Tiny, Mobile TV Ever Going To Get?

“It’s been more than 9 months since MobiTV announced its 3 millionth subscriber; it only took 8 months to get to 3 million (Oct. 22, ’07) from 2 million (Feb. 28, ’07).”

It looks as if their numbers are slowing in a time where Mobile capabilities are constantly increasing. Still, it’s alarming to see Mobitv.com’s site analytics! Take a look at their Unique Visitors decline over the past year:

That’s a 40% decrease this year, but that could be caused by many different factors and we also have to rely on their subscriber numbers over the visitor numbers any day! We also have to be aware of the fact that the “slow” increase can be blamed on usability level of smart-phones, limited 3G networks, etc? That could directly influence the amount of people willing to pay for mobile TV.

Again, according to the SAI (Silicon Alley Insider) article:

“About 4.8 million Americans — 2.1% of the U.S. mobile market — watched programmed TV/video at least once a month on their phones this spring, according to research firm comScore M:Metrics. Meanwhile, more than twice that — 11.7 million subscribers, or 5.2% of the market — watched free video sent by family or friends.”

But again, this brings us back to recent articles concerning online video metrics. Take a look at http://blog.aclion.com/video/ for more info to bring you up to speed. Other than that, things are looking up for MobiTV now and I’m going to follow their growth to see how it pans out over the next 2 years of which mobile capabilities will play a huge part. Familiarize yourselves with companies like these, because we are beginning to move into a highly-technical advanced MOBILE future where video plays a key role in both news, entertainment and advertising.

Posted under Online Video

This post was written by Joshua Russak on August 4, 2008

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FunnyorDie.com: Online Video and TV Merge!

Original: FunnyorDie.com: Online Video and TV Merge!

Following the recent trend of CollegeHumor.com going fromOnline User-Gen to MTV, it seems FunnyOrDie.com falls into that same category. I think this is going to be a recurring theme and figured I’d bring readers up-to-speed on FunnyOrDie.com’s progress:

funnyordie.com

See more Will Ferrell videos at Funny or Die

Without a question, FunnyorDie.com is hilarious and has a future in the Online Video business. They even have a Wikipedia Page, Funny Or Die. “Funny or Die is a comedy video website founded by Will Ferrell and Adam McKay’s production company, Gary Sanchez Productions with original and user generated content. Funny or Die is also unique in that it contains a good deal of exclusive material from a number of famous contributors (e.g. Judd Apatow, James Franco) and has its own Funny or Die Team (FOD Team) which creates original material for the site. Michael Kvamme, an aspiring young comedian, came up with a concept for a new kind of comedy site and the site was developed by Randy Adams. Videos are voted on by users of the site; those that are deemed funny stay, but those that are not “die” and are relegated to the site’s “crypt”.”


The site’s first video, The Landlord, has received over 55 million views and features Ferrell confronted by a swearing, beer-drinking two-year-old landlord.[1] In June 2007, they received venture capital funding from Sequoia Capital,[2] and in June 2008, they announced a partnership with HBO.[3]

I first knew about the Investment back in April when I came across a Mashable.com article FunnyorDie.com: Will Ferrell Takes Sequoia Investment. Then In June 2008, I read an article that insured my belief that they’ve made their place in the Online Video business, avoiding the User-Gen approch (in a way) and uploading professional content. As quoted from WikiPedia:

HBO and FunnyorDie announced that HBO had purchased a stake of less than 10% in Funny Or Die. With this, Funny or Die will be responsible for developing at least 10 half-hour episodes for HBO, and the companies may organize future comedy tours together. Regarding the agreement, Will Ferrell said, “I don’t want to overstate the importance of this deal, but this is the missing link moment where TV and Internet finally merge. It will change the way we as human beings perceive and interact with reality. Okay, I overstated it. But it is an exciting deal.”[4]

This is very similar to CollegeHumor.com’s step from Online Video to MTV. I wrote about that earlier this week: CollegeHumor: From Online User-Gen to MTV

I’d keep a close eye on FunnyOrDie and see what Will Ferrell is fully capable of. Hats off to them! Now go and check out their latest footage (b/c most of it is not exactly censored for me to post on this blog): FunnyOrDie.com

Posted under Online Video

This post was written by Joshua Russak on July 29, 2008

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