Monday, April 21, 2008

Internet Video and Online TV - The Next 18-24 Months: 10 Minutes with Adam Berrey, CMO - Brightcove

Pete Krainik: Adam, I know you are lined up to speak at our CMO CLUB May Summit in NYC around Internet Video and Online TV. Without going into all the details of your presentation one of the key questions I get at CMO CLUB dinners around Internet Video, is what’s coming? What should CMOs be aware of when thinking 18-24 months out in leveraging these marketing vehicles?

Adam Berrey: First off I think you are going to see video grow and grow. It is a way people like to consume information, so you’re going to see marketers using it more and more on their websites to communicate their product, their brand, their corporate vision, and to introduce the executives and the leaders to their customers. So you are going to see more and more video getting produced as part of the mix of collateral and materials and communication stuff that companies are coming up with.
I also think that you will see more and more video in online advertising. One of the things we are seeing is that on line video is a really powerful branding tool. You have got this high impact experience with sight, sound and motion, and the accountability of online tracking. There is also growing evidence that this is going to be a highly effective branding medium in addition to a direct response medium so you are going to see more and more video used as part of the advertising mix as well. I think that’s a continuation of what we have already started.

Pete Krainik: So how will the landscape changing already in this area?

Adam Berrey: I think the first is the growing use of high quality longer formed content. So consumers are getting more comfortable with the idea of watching longer formed content online, that’s being driven initially by the networks and “catch up” TV where you are able to watch episodes that aired last night the next day on their website. Also the delivery technology is getting to a place and the adoption of broadband is getting to a place where you can serve broadcast quality video to the PC. I also think at some point in the next few years, we’ll hit a tipping point for the linkage between the PC and the TV where you will be able to actually pipe directly to the TV.
I think the other big trend that we are seeing is adjacent to the core video publishing market, but it obviously has a very significant implications both for marketers and for media companies. That trend is the growth of what we call uber ad networks. You’ve now got Microsoft, Google, Yahoo and AOL all building out ad platforms that combine both selling as well as ad serving. It’s giving CMOs a new way to get reach and to optimise their campaigns, and at the same time that it’s giving media companies a new set of tools in order to fill inventory more effectively and do better yield optimization across their inventory.
At the same time we are also seeing a group of small but very aggressive and strong niche oriented ad networks including sites for women, sites for the auto industry and others. Thinking about how those fit into buying strategies and also fit into publishers’ strategies for filling their inventory is an important underlying trend that you are going to see more and more of.

Pete Krainik: What advice would you give other CMO CLUB members, if they have done very little to date in this area other than a couple of videos, in moving forward?

Adam Berrey: I am a big fan of starting with strategy. I would look at my customer acquisition process from awareness all the way through to loyalty and advocacy; and I would ask myself: where in that process can I have the biggest impact right now? Where can I increase a conversion from those different stages across the whole conversion process? Then I would look for a place that I could insert some video and see if I can get additional momentum.
For example, I might be feeling good about the customers I have coming in, but I want to amp up the loyalty and try to build some more advocacy in my customer base. Then what I would focus on video content that is about helping my customers get deeper into the product line that I am selling, and offering them value added information as part of my loyalty program. On the other hand, if I am looking at my sales cycle and I am having trouble moving leads through to close fast enough, maybe I should look at leveraging video that would shorten the sales cycle.
In speaking with Adam and listening to his insights, these vehicles are just going to grow and the ability to differentiate and cut through the clutter will be critical for CMOs success in the future. Like any other vehicle, the quality of the story, the creativity in aligning with your brand promise, and the ability to capture your customers interest will matter most.

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