BECOME MORE VISIBLE, MAKE MORE MONEYEveryone is looking for new ways to compete effectively, capture, share and remain vital in increasingly saturated markets. For many, digital video is an attractive solution that sets them apart. Poised for unprecedented rates of growth, digital video has the potential to attract larger audiences and provide fuel for new revenue streams. But getting started requires more than recognizing this potential. Our agency can guide you on the fundamentals of building a thriving digital video business.
Why Video matters more than everThe facts.
People literally spend hours every day watching videos. TV is still the number one resource for that, but the television program broadcast ratings, cable subscribers, households with TV — are all declining. The fastest-growing segment by far is online video, with year-over-year growth rates north of 50 percent.
It’s estimated that by 2017, researchers expect global consumer video activity to represent nearly 70 percent of all consumer Internet traffic, up from 57 percent from 2012. Online video services will double, reaching more than 80 percent of all Internet users worldwide.
Words, then images, then video. The appeal of video is easy to understand. It’s a combination of music and moving images, it’s engaging and entertaining in ways that print and radio cannot replicate. Consumers pressed for time and conditioned for instant gratification — meaning almost everyone will naturally gravitate to video. The whole concept of Internet virality is tied to video.
Video holds special appeal for publishers and marketers for all of these reasons.
It aligns well with organizations that already excel in multimedia storytelling, creating opportunities to blend video with text, images and interactivity to create a more meaningful, memorable experience for the audience. Although digital video is increasing in popularity globally, advertising inventory is still scarce. That means CPMs for video advertisements are typically much higher than display ad CPMs. And with video, user engagement is easier to track, fine-tune and sustain. In other words, the money is out there.
But questions remain. Digital video is its own world, with unique demands and expectations that differ from best practices in other media. Attention spans are shorter. Appetites are more variable. And, of course, every media company worldwide is in the mix, competing for attention and ad revenue.
A media business development executive working for a large Internet company in Singapore put it this way: “I was a seasoned former TV producer for a major cable network, and I had to learn from scratch how video really works on the Internet.” Many publishers are in the same position: intrigued but uncertain. Confident that video is the right strategy to pursue, but less sure about the best way to make it happen, sustain it successful and make the success.
The good news is that there are nearly as many ways to build a digital video business as there are publishers. The key is knowing your audience.
Attracting AUDIENCE TO DIGITAL VIDEOKnowing who their audience is today—and who they want to attract tomorrow—will help publishers make important decisions about why a digital video business exists and who it serves. Understanding their audience will inform publishers’ decisions about technology infrastructure, content acquisition and advertising tactics.
“You have to know your customer,” states the head of product for a major business news site. “You don’t have to deliberate for a long time, but you need to clearly state who your customer is and what they want. Knowing this leads into what your video business will do and why. Not knowing will be expensive.”
With a specific audience in mind, publishers can begin employing tactics designed to obtain and retain their desired audience. No matter where these desired visitors are, building an initial audience for digital video starts with engaging existing users and attracting viewers to your site from other sites. There are many tactics publishers can use to do this.
Sources: Bloomberg Media