Nov 04 2008
Context is King Week
Following up on the Context is King follow-up:
Further proof that with 25c and killer content, you’re only $3 short of the price of a tall latte. This time from the Digital Publishing and Advertising Conference:
…the discussion was all about making money today from online video advertising. I asked for a quick show of hands in the room on how many attendees were content publishers, at which time more than fifty hands went up. I then asked, how many publishers are making enough money today from online video advertising to cover anything more than your distribution costs? With that question, the room fell silent and not a single hand out of the more than fifty went up.
And these weren’t YouTube style publishers and independent video creators in the room. These were some of the largest online video publishers across many different industry verticals. After the panel, I spoke to many of them about their specific business challenges and what they needed in the market to be able to truly monetize their content. While answers varied, the number one complaint from all of them was that online video advertising still lacks targeting which keeps CPM rates lower than they would be if the right ad was being targted to the right user” businessofvideo.com
[…] Here’s another little tidbit about lack of money from online video advertising. Powered by Gregarious (42) Share This […]
This is interesting, the online video industry has seen huge popularity and at the same time fraught with limited revenues.
The assumption of the 2001 internet bubble was the user audience came first, then revenues came next. This was proved to be a devastating strategy.
But as businesses are realizing, fitting a weak business model to even a hugely successful new technology is more difficult than they imagined.
Thanks
Brian Glassman
Ph.D candidate in Innovation Management Purdue University
Yes - the whole notion of millions of views and $0 is a whole new phenomenon.