Internet Video Viewership 120% year on year growth.

Internet users in the USA watched a staggering 34.2 billion videos in January 2010, up 120% year on year, according to the leading internet metrics research company Comscore.   This worked out at 187 videos per viewer in the month. This is further conclusive proof that internet habits are changing from text to video.  The average video length was 4.1 minutes.  You’ve probably done the maths already but that is 12.7 hours of video consumed per video viewer!

Here in the New Zealand local local internet metrics company Nielsen indicate 70% of kiwis online are viewing video.  At Silverlinemedia.tv, we are at the coal-face having made over 2,000 full motion and virtual videos for our clients since our launch in late 2008.  In Janaury our videos were played 30,647 times on our customer’s sites and the numerous video sites we distribute to from the mighty YouTube to Dailymotion.  This accounted for 39,000 minutes of video informing customers about businesses products and services.

Video is clearly on an incremental projectary as costs of production reduce, return and benefit demonstrate the value and the sheer range of opportunities to use video to persuade and inform customers and partners. Add the smarts and effectiveness of online video advertising and the argument for video as a key part of a businesses business / media strategy are frankly pretty simple.

Online Marketing Cinema Trends – Online Video – Social Media

Terrific feedback on the online Marketing Trends presentation I made at New Zealand Cinema Conference.

Review the slide show here:

View cinema trends presentation at slideshare

Video Magazines to Launch

multiEntertainment Weekly (owned by CBS) will on September 18th run the first video ad inside a magazine promoting Pepsi Max. The revolutionary technology comes from Americhip.  

The technology for the battery-powered ads can handle about 40 minutes of video. The screen, is 2.7 mm thick with a 320×240 resolution screen which uses thin film transistor liquid crystal display technology.  View the video demo of the video magazine. Interesting insights on future marketing and the senses from Americhip at their YouTube channel. Good video journo piece from AdAge on this story supporting the demise of static advertising.

This is a very exciting innovation from CBS and Pepsi Max in taking the power of video into the high loylaty engaged environment of magazines. Over time this technology will become increasingly affordable. With the rise of ‘Kindle’, power mobiles and other digital signage, online video communication is going into the traditional mainstream. Here at Silverlinemedia.tv we are currently driving our online video markting solutions to mobile, kiosk and other local digital signage and can’t wait to test this kind of targeting and interaction to our customers.

I started my career in magazines and have many launches in my portfolio across Europe and New Zealand. The majority of magazines truly do have a strongly engaged audience, with readers (customers) often paying significant cover prices to obtain the content. The strength of magazines is compounded by strong pass-on rates which crucially increases both readership and shelf-life of the advertising. Generically in recent years circulations for the majoity of titles have been falling. This media integration innovation will be actively reviewed by publishers and advertisers alike, to re-stimulate a terrific medium.

Shoppers increasingly watching online Retail Video

researchandmarketsThe number of online shoppers who watch retail videos grew 40% in a year.  Not suprising given trends and that obvious fact that video brings products to life in a way that static images and text can’t, often providing the final push a consumer needs to make a purchase or an enquiry.

Research and Markets’  report analyzes the power of product videos to lower the number of abandoned shopping carts, reduce return rates and generate higher sales.

A key obstacle to greater video adoption among online retailers is the high cost of in-house video production. But the data shows increased sales may outweigh increased costs. 

This is more of a perception given the rise of online video specialists. At  Silverlinemedia.tv we create, host and distribute online video for businesses from only NZ$250.

Major publishers focus investment in online video

mplogo

 Reports today that major media companies are ramping up their video operations as pressure comes on digital advertising growth, let alone intense pressure on their traditional channels. The driving principle is the premium rates that video ads command.  Publishers such as Forbes, Conde Nast, The New York Times and The Street.com relaunched their video platforms this fall with plans for further growth in 2009. 

Video works hence the higher CPM’s being chased by the majors.  With our customer base the video investment is producing high ROI on sales/lead conversions and brand cut-through.  That is why big publishers, with terrific engaging content can insert targeted and compelling video into their pages and deliver for advertisers. For our target audience, small business, this is further great news that more video placements will appear on great content sites enabling small business advertisers, the opportunity to target and deliver their message and compete with the big boys.

Online advertising rules for US SMBs

ad0ologyThe Ad-ology Small Business Marketing Outlook survey,  found that small business is cautiously optimistic going into 2009 despite recessionary data and conversation.  SMBs are clearly getting smarter in where and how they advertise.

When broken down by media type, over half of small business advertisers plan to spend the same or more on the following: Online advertising (69 percent), Yellow Pages (54 percent), newspapers (51 percent), and direct mail (51 percent).

More than half of respondents plan to spend the same or more time and money on their Web sites and email marketing in 2009.  Within the online mix, 23% are already using online video and 17% are podcasting and 18% are using mobile.  

SMBs in the US, like here in New Zealand, are adopting faster, online and new techniques and channels within the broad online definiation, than many ‘major’ brands and advertisers. These stats suggest 23% are using video right now on their websites, that is effectively one in four. Here in New Zealand we are running nearer one in eight. In both cases this exceeds the use of video online by major brands.

SMBs run and own their business. Every dollar out is measured closely, there is no corporate waste or decision layers. Time and time again we have seen SMBs (SMEs) run with ideas and make them work – classifieds, directories, email and now video, mobile and podcasts.  It is this embracement that will help create leading companies and the green shoots of economic recovery. Encouraging research.

The Small Business Marketing Survey was conducted in October 2008 by Ad-ology Research to study the attitudes of small business owners.

Ad-ology Research analyses key marketing and advertising trends in over 370 industries and what motivates end-customers. The company’s research is used by over 2,000 advertising agencies, media properties and product marketing departments across the United States. Ad-ology Research is a division of Sales Development Services (SDS), Inc., a Westerville, Ohio firm.  View more at www.ad-ology.net

Video ads twice as powerful

iab-canada-nav_logoThe Interactive Advertising Bureau of Canada reports that video has proven to be an incredibly hard-working online ad format for Advertisers. Recent research compiled from almost 200 Video campaigns already in Dynamic Logic’s Market Norms database, indicates that Video ads are twice as powerful as all other Online ad formats in drawing consumers attention to the ads themselves; and almost 40 percent more effective in driving brand message association.

IAB Canada encourages advertisers of all types who have been considering getting into either in-stream, rich media or over-the-page Audio and Video advertising, to take immediate action on these new pilot project rates, in order to benefit from Video ad effectiveness in 2009 and beyond.”

Further compelling evidence that using a display (banner) ad space and using compelling video within gains attention and drives a brand message. The message is simple for adverisers (agency or SME) good video ads work far better than other formats.

German video consumption on youtube

25.9 million German Internet users viewed more than 3 billion videos online in August 2008 according to the comScore Video Metrix service. That’s an incredible 95 videos per user with the average video playing just over 4 minutes.  Google Sites lead the pack, primarily due to YouTube.

Therefore the total German online video viewing audience in August watched an astounding total of 219 million hours of video content, or individually just over three hours.

According to comscore 73% of Germans are actively watching video vs. 70% in the UK and 66% here in New Zealand (Nielsen Net-ratings). 

The take-up of video across continents is consistent and its moving fast in total percentages and time spent.

Kiwi Car Dealers Embracing Video

Over 600 online video’s of New Zealand cars have been produced by Silverlinemedia.tv over since July 1 and now we are seeing car dealers embracing video to present their dealerships benefits and offers.  Several video ads can be seen live on the autotrader.co.nz website from the likes of Pinnacle Cars, Kepplers Cars and Ebbetts.

This wave of embracement in New Zealand quickly follows on from a US report by the Kelsley Group earlier in the year which showed in the US a third off all dealers were already taking advantage of video.  The survey reported 59% of dealers planned to use video on their own websites within the next 12 months

The rational for this explosion. Is simple. Our view that video increases conversions for websites is supported by Larry Pryg, the National Marketing Manager for GM’s certified-used auto business has stated that “Video is exploding,” and that when it comes to used cars, dealer websites that have video are 2X more likely to generate phone calls or emails from prospective shoppers vs. websites just using still pictures.

Video advertising projects high

Here at Siverlinemedia.tv we are convinced that the video advertising online is shaking the ground of traditional advertising models. Here are two recent research reports that almost support our enthusiastic view of online video.

eMarketer has a new report available that details yearly projections for online video ad spending through to 2013.  The report, titled “The Video Advertising Online Report,” demonstrates that although 2008 was a change year with both the elections and the olympics suppoting the rise of socail video media , in another 4 years video advertising effectively will be a standard in the USA.

 

This comes in shortly after the intensive research report from LiveRail, the video advertising San Francisco technology start-up, which forecasted a 50% plus growth in US video advertising over the next two years reaching close to US$1bn by 2010.

a sure thing trend

a sure thing trend

According to the report, online video advertising currently only represents 2.4% of all online advertising expenditures. In addition, less than 21% of internet video streams are currently being monetized. As a result of the opportunity, online video ad spending is forecast to grow 55% in 2009 vs 2008 to almost a billion US dollars.