Increased Viewers & Dollars
By 2010, eMarketer projects the audience viewing online videos will reach 157 million people. While some leading brands are already tapping into this growing market, Dean Harris told a recent gathering of The CMO Club in New York that there is still a sizable opportunity for companies large and small to take advantage of this new medium.
Harris, the President of short-form content syndicator Piggyback Publishing, pointed out that the marketplace for online video is currently estimated at $775 million, but it is expected to explode over the next four years. By 2011, eMarketer projects the market will boom to more than $4.3 billion.
The two biggest drivers for this growth, according to Harris, are the acceptance of viewers and the low cost of entry. “The cost of production and editing for online video is so modest, any company should be able to take advantage of the format,” Harris said. He added that companies have produced quality online videos for as low as $2,500, “which compares very nicely against $350,000 for a TV commercial.”
Harris pointed out that the online video marketplace was legitimized last year with Google’s $1.65 million acquisition of You Tube. “The fact that they have allowed content to be shared has really moved the medium forward. When you consider the number people accessing that content, it speaks directly to the potential of the category.” You Tube has reported that they are delivering more than 100 million video views per day with 65,000 new videos uploaded daily.
According to a recent report from ComScore Video Metrix, 74.3 percent of U.S. Internet users streamed video online. Other findings from the Video Metrix report included:
--The average video stream duration was 2.5 minutes
--35 percent of U.S. Internet users streamed video on YouTube.com
--The average online video viewer consumed 63 video streams in the month of May, or more than two per day
Another signal that online video is changing the marketing landscape is the fact that major brands are building campaigns around consumer-generated ads. Harris cited the example of Doritos, which ran a consumer generated ad during the Super Bowl. The ad reportedly cost $12 to produce yet still scored in among the top 3 ads based on viewer studies, and also contributed to a subsequent sales spike for the brand.
While big consumer brands have made the headlines with consumer generated video, Harris emphasized that the same opportunities exist for smaller consumer brands as well as B2B marketers. “All companies now have the ability to easily embed video anywhere on their webpage,” Harris said. “Studies have consistently shown that video offers a high degree of engagement and like other forms of online advertising, video offers targeting, tracking and measurement.”