Tenacity5 will release the second edition of its email newsletter, the Monthly Marketing Mashup this week. Here is the November edition, “Video Killed the Video Star.”
Everyone is talking about how important video is to online content and marketing. They’re also saying TV advertising is dying. But why do they say that? What does that mean?
This month we dig deep into the video market to give you a complete briefing on the Internet video trend.
TV Is Not Dying
Many say TV ratings — and consequently advertising — are dying. Don’t believe it for a minute. The Internet is not killing video or TV. Video simply is moving from one distribution mechanism to another, from broadcast and cable to Internet downloads. And ad spends are following the eyeballs.
People love video content. Period! Younger people are just finding new ways to watch it. For example, The Walking Dead is the regular weekly best seller on iTunes. Call it cord cutting or just online video, Internet distributed programs are the immediate future. The distribution of video has caused both CBS and HBO to develop their own programs.
How Big Is Digital Video?
By the end of 2014, 190 million people in the United States will have watched digital video across their various media devices. More than 100 million of those people watched a movie, which is certainly longer than the standard 30-second to two-minute YouTube schtick. We know Netflix made digital streaming a household experience. The brand remains at the top of its category.
Is Online Ad Growth Really Video Ad Growth?
Forrester declared that online ad spending would surpass TV in the next two years. One has to ask: Is that really true?
We think Forrester is thinking in pipes. In one pipe you have cable and broadcast television advertisements, and jn the other — the Internet — you have online ads. So Internet video ads are simply replacing the old traditional broadcast and cable video ads. For example, the Monty the Penguin ad for John Lewis took Facebook by storm in October.
Even AOL Wins with Original Online Video Content
We admit it; we were skeptical when AOL continued its original video content development en masse with 16 new programs this spring. Fast-forward to the autumn, and you can see that advertising on Internet TV programs now accounts for 38% of AOL’s non-search revenue. Even James Franco has joined the AOL line-up with his Verizon-sponsored series “Making a Scene with James Franco.”
Corporate Video More than a House of Cards?
Most technology-driven media giants are following Internet players AOL and Netflix with their own original Internet TV programs. Players include Microsoft, Yahoo! and Amazon.
They’re being joined by some Silicon Valley start-ups, like SlugBooks, a textbook purchasing site. SlugBooks uses its “Dorms” series to drive in-bound web traffic from college students. NASA offers its own TV programming for aerospace nerds.
Most Companies Only Use Video for Their Sites and Social Media
While video programs may be the hot online trend, a survey produced by video production company Flimp shows that most corporate video is created for corporate websites (80.8%) and social networks (69.2%). Some companies are using video for programs, customer service help, sales, training, etc. However, no other use topped 40% amongst corporate buyers.
Dollar Shave Club launched itself with an incredible two-minute YouTube video. The company’s YouTube ads are now making their way onto the traditional screen.
Producing Video Requires Budget
Video production is still one of the most expensive forms of content out there. A two-to-three minute video will cost you anywhere between $2500-$10,000. Original content programs are significant investments that can easily run over $100,000. Why so much? There are many reasons, but we like this list of 25 factors that weigh in on the cost of a video production.
Oh if you want a good laugh check out Dissolve’s Generic Brand Video. It may be the best marketing making fun of marketing video ever.
CMOs Plan to Deliver
CMOs and marketing executives know that video is a priority. Video production is tied as the top line item targeted for spend increases in 2015 at 71%, according to the CMO Council’s annual survey. Better get ready for moving pictures in 2015.
Adobe built an explainer ad to define CMO.com to CMOs. Now we need videos to explain websites.