online video metrics matter

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Video Monetization: Metrics Matter Paul Zagaeski Principal Analyst, Online TV Adviser & GigaOm Pro Analyst Network June 2010

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Online video is about to reach parity with other media as a primary ad platform. But what are the right metrics to track and pay for?

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Page 1: Online Video Metrics Matter

Video Monetization: Metrics Matter

Video Monetization: Metrics Matter

Paul ZagaeskiPrincipal Analyst, Online

TV Adviser &GigaOm Pro Analyst Network

June 2010

Paul ZagaeskiPrincipal Analyst, Online

TV Adviser &GigaOm Pro Analyst Network

June 2010

Page 2: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

Today’s Key IdeasToday’s Key Ideas

Video viewing trends (the New TV) New TV is making money (are you?) Online viewers > engagement Engaging viewers is cheap! (or is it?)

What does engagement mean exactly? Engagement Metrics: this ain’t your grandfather’s Arbitron Ratings Book

Video viewing trends (the New TV) New TV is making money (are you?) Online viewers > engagement Engaging viewers is cheap! (or is it?)

What does engagement mean exactly? Engagement Metrics: this ain’t your grandfather’s Arbitron Ratings Book

Page 3: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

Video Viewing TrendsVideo Viewing Trends

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TV: just a box and lots of local broadcasters

Cable/satellite: more channels, narrowcasting

Web video: LOLCats give way to “TV experience online”

TV: just a box and lots of local broadcasters

Cable/satellite: more channels, narrowcasting

Web video: LOLCats give way to “TV experience online”

Page 4: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

New TV Is Making MoneyNew TV Is Making Money

Broadcast 1940s-1970s (ads) Cable/satellite 70s-90s (ads + subs) Web video 90s-00s (no one paying or buying ads) Online TV 00s (no one pays for LOLCats on YT) Paid Content 10s-future (ads + subs + PPV(?)) Pain: what does an ad buyer buy in New TV?

Broadcast 1940s-1970s (ads) Cable/satellite 70s-90s (ads + subs) Web video 90s-00s (no one paying or buying ads) Online TV 00s (no one pays for LOLCats on YT) Paid Content 10s-future (ads + subs + PPV(?)) Pain: what does an ad buyer buy in New TV?

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Page 5: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

Online Viewing>Engagement

Online Viewing>Engagement

Web & mobile platforms give the viewer power—they can act!

HSN=$billions Interaction rate 5-

7x higher than for ads

Lots of innovation, measurable resultsUbiSoft (Your Shape for Wii) competes with Wii Fit using online video

Source: http://www.clickz.com

Web & mobile platforms give the viewer power—they can act!

HSN=$billions Interaction rate 5-

7x higher than for ads

Lots of innovation, measurable resultsUbiSoft (Your Shape for Wii) competes with Wii Fit using online video

Source: http://www.clickz.com

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Page 6: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

Engaging Viewers Is Cheap…

Engaging Viewers Is Cheap…

…when it works (Nike Hyperdunk) Can also be impossible/too expensive

What’s the cost? Rough scale CPM Display Ads $2.30-$2.45 CPM Online Video Ads

$7-$8 ROS or in-banner video$15-$20 for pre-roll/premium pre-roll*

*eMarketer/Credit Suisse/LiveRail/AdAge

…when it works (Nike Hyperdunk) Can also be impossible/too expensive

What’s the cost? Rough scale CPM Display Ads $2.30-$2.45 CPM Online Video Ads

$7-$8 ROS or in-banner video$15-$20 for pre-roll/premium pre-roll*

*eMarketer/Credit Suisse/LiveRail/AdAge

Page 7: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

What’s Engagement Mean?

What’s Engagement Mean?

Ads online are in a completely new context versus ads on TV

For the user: Where did I find this? Who helped me find it? What did I think while watching? What did I do during and after watching?

For the brand: What format did we choose? Where are we putting this? What else appears with it? How did the viewer respond?

Goal: Going viral! Means brand is probably maximizing all relevant metrics for the video—and you need metrics even when it’s an obvious success.

Ads online are in a completely new context versus ads on TV

For the user: Where did I find this? Who helped me find it? What did I think while watching? What did I do during and after watching?

For the brand: What format did we choose? Where are we putting this? What else appears with it? How did the viewer respond?

Goal: Going viral! Means brand is probably maximizing all relevant metrics for the video—and you need metrics even when it’s an obvious success.

Page 8: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

Engagement MetricsEngagement Metrics

Placement Sentiment Engagement Reach

Placement Sentiment Engagement Reach

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Page 9: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

Nike Ad Metrics CaseNike Ad Metrics Case

My recent favorite “viral video” (Kobe & Hyperdunk)

Measuring ad results of: Placement (6 > 250+) Sentiment (40% re-enacted)

Engagement (35k comments) Reach/Exposure (375,000 hours)

See case athttp://corp.visiblemeasures.com/case-studies/engaged-reach/

My recent favorite “viral video” (Kobe & Hyperdunk)

Measuring ad results of: Placement (6 > 250+) Sentiment (40% re-enacted)

Engagement (35k comments) Reach/Exposure (375,000 hours)

See case athttp://corp.visiblemeasures.com/case-studies/engaged-reach/

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Page 10: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

And Now You KnowAnd Now You Know

There’s New TV New TV is gaining ad revenue traction

One reason: online viewer engagement, with great follow-on value brought to the brand

Measuring that engagement is absolute requirement for your brand’s next success.

There’s New TV New TV is gaining ad revenue traction

One reason: online viewer engagement, with great follow-on value brought to the brand

Measuring that engagement is absolute requirement for your brand’s next success.

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Page 11: Online Video Metrics Matter

copyright 2010 Paul Zagaeski

Time For Q&A Later…Time For Q&A Later…

By the way, check this article about barriers to online video ads

http://techcrunch.com/2010/01/16/12-things-holding-back-online-video-advertising/

By the way, check this article about barriers to online video ads

http://techcrunch.com/2010/01/16/12-things-holding-back-online-video-advertising/

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Page 12: Online Video Metrics Matter

That’s all, folks!That’s all, folks!

Paul Zagaeski (Twitter: paulzagaeski)Principal AnalystOnline TV Adviser

http://onlinetvadviser.wordpress.comMember of

GigaOm Pro Analyst Network

Paul Zagaeski (Twitter: paulzagaeski)Principal AnalystOnline TV Adviser

http://onlinetvadviser.wordpress.comMember of

GigaOm Pro Analyst Network