Larry Kless' Weblog: eMarketer

Showing posts with label eMarketer. Show all posts

Friday, May 8, 2015

Animoto Survey Says: Consumers Want More Video Marketing on Web, Social and Email [Infographic]

According to a new survey released today by Animoto, the leading cloud-based online video creation service, consumers are hungry for video and four times as many of them would rather watch a product video than read about it. In fact, of the 1,051 U.S. consumers surveyed, 1 in 4 actually lose interest in a company if it doesn’t have product video. The company issued a press release and infographic detailing the findings of its 2015 Video Marketing Cheat Sheet.

eMarketer estimates that US video advertising will climb to $7.8 billion this year and social media platforms like YouTube, Facebook and Twitter continue to attract and build content partnerships. Animoto CEO Brad Jefferson sees video as a huge opportunity for businesses to engage with consumers:

"The growth of online video marketing in recent years has been tremendous," said Jefferson. "Today, there are more than 7 billion videos watched every day on Facebook and YouTube. Historically, in order to create and distribute high-quality video to your customers it was cost-prohibitive for all but the largest brands. However, today's tools and platforms ensure that small and medium businesses can reach their audiences where they hang out online. This represents one of the biggest marketing opportunities for small businesses in a long time."

Three key themes emerged from the study, data presented below is directly from the press release:

1. Video Marketing Resonates With Consumers (Video drives brand lift)

63 percent of consumers say companies that use video know how to reach their customers
One quarter of consumers lose interest in a company if it doesn't use video
56 percent of consumers believe that if a company has a website, it should have video

2. Video Boosts Email Marketing and Social Media Engagement (Connect with consumers)

84 percent of all consumers said that they have liked a company video that has appeared in their newsfeed
43 percent of consumers are more likely to read email newsletters that include links to video
56 percent of consumers have watched a company video that came through email
Nearly half of all consumers have shared a company video on their own social media profile

3. Video Boosts Email Marketing and Social Media Engagement (Tell your story)

80 percent of consumers say a video showing how a product or service works is important when learning about the company
56 percent of consumers says customer testimonials are helpful when purchasing a product/service
About half of customers say that 'about the company' videos are the most helpful when purchasing a product/service

About Animoto: Animoto makes it easy for businesses to create effective, professional videos within minutes with no video editing experience. Businesses use Animoto to enhance and promote their brands, drive website traffic, increase sales, and create dynamic email, social and online marketing campaigns.Founded in 2006, Animoto is based in New York City with an office in San Francisco. For more information go to: http://animoto.com/business.

Tuesday, April 19, 2011

Online Video Platform Summit 2010 Keynote: Brightcove CEO Jeremy Allaire, "The New Video Landscape: Multi-platform Distribution, Monetization, and Fragmentation"

In his keynote address at the Online Video Platform Summit, Jeremy Allaire, CEO and Chairman of Brightcove discussed the broad themes involved in the complex and fragmented landscape for online video publishing and the strategies organizations need to have in place to achieve success with their video initiatives. Eric Schumacher-Rasmussen provided a great summary of Allaire's keynote in his post, Brightcove: “Everyone is an Online Video Publisher” on OnlineVideo.net, which highlights Allaire's view of the changing face of video and content monetization, as more and more publishers look to expand their video initiatives to all three screens.

Allaire pointed out the rapid growth of online video in 2010 grew to a staggering 30 billion monthly views, and is now more than 50% of Internet traffic in the U.S., and it's estimated that it will will grow to 90% by 2013. Some of the key drivers fueling that growth are ad supported online video, which continues to grow faster than any other area of online advertising, and also the brand marketing and retail applications which are really exploding.

eMarkerter predicts that online advertising spend will be $28.5 billion in 2011, and that almost $2 billion of that will be online video advertising. This is really exciting for the industry, says Allaire, because corporations and institutions are expanding and investing in video as a way to enhance their customer relationships and customer touchpoints.

According to Allaire:

“Everyone is an online video publisher. Retail, small businesses, foundations, non-profits, and of course media companies. The use cases for online video are now as many as the use cases for the web in general.”

He added that online video platforms have emerged as critical partners to publishers by creating solutions that help them navigate the complex and fragmented online video landscape.

“For businesses, it’s less about the technology—which should be invisible—but about the business value."

Allaire said increased bandwidth capacity and demand for higher quality video experiences have required publishers to render multiple versions of their content for multi-bitrate streaming. In addition, there is a tsunami of new connected devices consumers are using to access video which all use a variety of video runtimes creating a fragmented publishing environment. Allaire said that the recent release of Brightcove 5, the company's cloud-based online video platform, addresses many of the issues that publishers face in the fragmented landscape and helps expand their reach. The new features include: distribution and synchronization with YouTube, iPad reference app, Apple HTTP streaming for the mobile Web and apps, cross platform Smart Players, new advanced analytics for Adobe® Flash® and HTML5 video developed in partnership with Tubemogul, and wide-ranging productivity enhancements.

I spoke with Allaire at length about his background and the early years of online video in this post from 2009. I also caught up with him following this keynote to get a summary of his view on the fragmented video landscape in this post, Jeremy Allaire, Brightcove: Reaching Viewers in a Complex and Fragmented Video Landscape. I've reposted the video from our conversation below.

About Jeremy Allaire

Jeremy Allaire founded Brightcove in early 2004 with a vision for the transformation of television with the Internet. From his early days as CTO of Macromedia, where he was instrumental in evolving Macromedia Flash into a dominant platform for rich media applications on the web, Allaire envisioned that one day video would become as ubiquitous as text on the web. As CEO and Chairman of Brightcove, Allaire leads the company’s technology, marketing and business development strategy. Prior to founding Brightcove, Allaire worked as a technologist and entrepreneur-in-residence for Cambridge, MA-based venture capital firm General Catalyst, where he worked on companies and investments in broadband media, mobile content, e-commerce software and digital identity.

Before General Catalyst, Allaire was Chief Technology Officer of Macromedia, where he helped define and launch the Macromedia MX platform for Rich Internet Applications, helping to evolve Macromedia Flash into a dominant platform for rich media applications on the Internet. Allaire joined Macromedia with its merger with Allaire Corporation, where Jeremy was a co-founder and Chief Technology Officer. Founded in 1995, Allaire Corporation was a pioneer in using the web as an application platform, and its industry leading and award winning products power millions of websites, online services and business applications on the Internet.

The Online Video Platform Summit is a two-day event designed to help organizations of all types, not just those for whom video is their core business. Held on November 2-3 in conjunction with
Streaming Media West in Los Angeles, the Online Video Platform Summit is designed for video publishers of all types and sizes, whether small businesses looking to publish content for the first time, independent entertainment content creators, large media organizations, or anywhere in between.

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Thursday, December 23, 2010

Jeremy Allaire, Brightcove: Reaching Viewers in a Complex and Fragmented Video Landscape

I met with Jeremy Allaire, Chairman and CEO of Brightcove, at the Online Video Platform Summit to get a summary of his keynote address, where he shared his view of the increasingly complex and fragmented landscape for online video publishing, and the multi-platform distribution strategies organizations need to have in place to achieve success with their video initiatives. Allaire founded Brightcove in early 2004 with a vision for the transformation of television with the Internet. From his early days as CTO of Macromedia, where he was instrumental in evolving Macromedia Flash into a dominant platform for rich media applications on the web, Allaire envisioned that one day video would become as ubiquitous as text on the web. I spoke with him at length about his background and the early years of online video in this post from last year.

In his keynote, The New Video Landscape: Multi-platform Distribution, Monetization, and Fragmentation, Allaire described the rapid growth of online video in 2010 with monthly video growing to a staggering 30 billion views. He pointed out that online video is now more than 50% of Internet traffic in the U.S. and it's estimated that it will will grow to 90% by 2013. Some of the key drivers fueling that growth are ad supported online video, which continues to grow faster than any other area of online advertising, and also the brand marketing and retail applications which are really exploding. eMarkerter predicts that online advertising spend will be $28.5 billion next year, and that almost $2 billion of that will be online video advertising.

According to eMarketer's David Hallerman:

"The reason for the huge increase in video ad spending is that brand marketers will shift more of their ad budgets online. Since there is more professional video online than ever before, buyers have more inventory to choose from. Brand marketers realize how central the internet is to consumers’ lives than it was even two years ago. More important, they see how much of that video content is professional, so they trust it and as a FreeWheel study shows, consumers tend to watch video ads to the end when they are up against professional video content."

This is really exciting for the industry, says Allaire, because corporations and institutions are expanding and investing in video as a way to enhance their customer relationships and customer touchpoints. Data from Brightcove & TubeMogul's Online Video & Media Industry Quarterly Research Report for Q2 2010, found that online video is a priority for brand managers and that more than 60 percent plan to spend more their website video initiatives in the next 12 months.

But while consumer demand, growth trends, and broad industry adoption introduce exciting new opportunity, Allaire says the complex and fragmented device landscape is introducing new challenges for online video publishers. In particular, Apple's release of the iPad started the HTML5/H.264 video vs. Flash debate over the future of web content and application runtime formats, which Allaire wrote about earlier in the year in a guest post on TechCrunch.

Allaire says increased bandwidth capacity and demand for higher quality video experiences have required publishers to render multiple versions of their content for multi-bitrate streaming. In addition, there is a tsunami of new connected devices consumers are using to access video which all use a variety of video runtimes creating a fragmented publishing environment.

"We've moved from the world of people publishing video to the PC web with Flash, to needing to have video on tablets and smart phones – both web browsing and native apps, that people do across a lot of different platforms – and the emergence of connected TVs are yet another set of platforms that are going to create these challenges for publishers. And then, the explosion of social media sites as sources of traffic and valuable forms of customer engagement. So really, the world has changed a lot in the last 12 months and that's actually created a huge amount of challenges and a huge amount of opportunities."

Allaire says that the recent release of Brightcove 5, the company's cloud-based online video platform, addresses many of the issues that publishers face in the fragmented landscape and helps expand their reach. The new features include: distribution and synchronization with YouTube, iPad reference app, Apple HTTP streaming for the mobile Web and apps, cross platform Smart Players, new advanced analytics for Adobe® Flash® and HTML5 video developed in partnership with Tubemogul, and wide-ranging productivity enhancements.

In a follow up TechCrunch guest post last week, Allaire further expanded on the outlook for 2011 – which promises to be yet another transformational year in the online video landscape – with connected TVs set to go mainstream, OTT (over-the-top) video adoption, the ongoing battle over video delivery standards, and the rise of social recommendations with Facebook and Twitter growing much faster as sources for online video discovery and referral compared to traditional search engines. According to Tubemogul and Brightcove's Online Video & The Media Industry report for Q3 2010, Facebook is now the second largest traffic source for media sites surpassing Yahoo! The report states that not only are social media destination driving more traffic, but consumers who find video through the recommendation of peers in the social networks are more engaged with the video content then content they find through other sources.

In his keynote, Allaire said that, "Everyone is an online video publisher," and that online video platforms have emerged as critical partners to publishers by creating solutions that help them navigate the complex and fragmented online video landscape.

"I think the really big picture is that we're just at the beginning. Video ubiquity is just emerging and we see a world in the next several years where every professional website in the world is going to have professional video applications, so it's a very exciting time for our company and the industry."

eMarketer Report Says Online Video Coming Into Focus, 188 Million US Viewers by 2013

In a new report analyzing the upward trajectory of online video consumption, eMarketer projects that there will be 144 million online video viewers in the US this year, growing to 188 million viewers in 2013. The report, Video Content: A Premium Opportunity, points out that audience levels and stream counts are rising, the demographic range of the viewing population is expanding and the content mix is evolving from short, snack-type clips to long-form content such as TV shows and feature films. As the medium matures so do the monetization models but for consumers it's unlikely that they would be willing to ever pay for the bulk of it. It's more likely that in the future Hulu and YouTube would move to a pay-per-view or download model for premium content.

Paul Verna, eMarketer senior analyst and author of the report said,

“Most video inventory is funded through ad support. This includes user-generated content, news clips, humor videos, TV shows and special events such as the Olympics. On the other side of the coin, feature films and mainstream sports content continue to be monetized through subscriptions and download fees.”

Mr. Verna noted that the bulk of the current video inventory is discoverable through social networks, blogs, microblogs, e-mail and other social platforms which TubeMogul confirmed earlier this year. That creates the perfect storm for a viral video hit and opens up opportunities for content distributors and marketers. Video quality is getting better too he added saying that,

“Gone are the days when the space was dominated by short user-generated clips aimed primarily at a collegiate crowd. Now, video offerings cater to all age groups and interests, from teenage sports buffs to news junkies to retirees who enjoy classic movies.”

Online video has come a long way from its early days and the rise of YouTube and other web portals, free and premium destinations fueled that growth. Knowledge Networks found that from 2006 to 2008, the percentages of US Internet users across every age group who accessed full-length TV shows grew by significant margins.

Gavin O'Malley from Mediapost added that,

"A number of trends will keep online video on an aggressive growth trajectory in the coming years. These include mobile distribution through smartphones and next-generation networks; HD streaming and other quality enhancements; better integration among PCs, digital cable boxes and TVs; and interactivity features that work better online than on TV."

For those following the online video industry it should come as no surprise that the growth is exploding, as it was just last month that Cisco announced the results of their Visual Networking Index (VNI) Forecast and Methodology, 2008-2013 which states that by 2013 video will be 90 percent of consumer IP traffic and 64 percent of mobile. More evidence came earlier in the year when The Nielsen Company reported that viewing of video on television, Internet and mobile devices - the Three Screens - continues to increase and has reached new heights. John Burbank of the Nielsen Company highlights the findings of their A2/M2 Three Screen Report in this video.

Chris Albrecht though suggested that as studios and cable operators make their moves to put their premium content behind subscription walls,

"It’s possible that could actually reduce consumption. Between Time Warner’s TV Everywhere, Comcast OnDemand Online, Netflix, and a supposed Disney subscription service, premium content could choke off its audience before it’s fully realized."

That's unlikely though to stop the continued growth since the millions of online viewers consume video for free through blogs, search engines, social networks and video destination sites.

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