The digital content revolution will not be televised because it’s already being streamed, podcasted and downloaded. While online video may have reached near ubiquity, it’s high time someone started making money. Google bought YouTube in 2006, but the company is still bleeding $400 million a year at the top spot in user generated video. In spite of a hungry and growing audience, cashing in is not easy, even for the big guys.
In his guest post, “How to Make Money in Online Video” TechCrunch contributor, Ashkan Karbasfrooshan, CEO and founder of Mojo Supreme, thinks he has the recipe for profitability in online video. Mojo Supreme are the Montreal-based owners of WatchMojo, one of the largest producers, publishers and syndicators of original broadband video content.
Here are a few quick takeaways:
Videos will become the dominant medium online
Video on the Web is no longer just about entertainment. It is also about marketing, instruction, and conveying information of all kinds.
Organizations of all sorts will soon be making their own videos, Karbasfrooshan says, and it won’t be strange to see accountants, lawyers and pencil pushers of various stripes in company-branded videos.
Content producers, not ad networks, have the best chance to cash in on emerging trends
“Aggregators and networks are solely advertising based businesses,” Karbasfrooshan says, while content creators can diversify revenue streams.
Preroll advertisements aren’t going anywhere (groan)
Pre-rolls are the equivalent of pop-ups (and mid/post rolls the equivalent of pop-unders) in that users hate them, but unlike pop-ups, I actually think pre-rolls won’t disappear, mainly because they’re the most in-demand ad format (according to Brightroll CEO Tod Sacerdoti)
Also, it’s easier to include a pre-roll when you’re syndicating to other websites and platforms, says blip.tv co-founder Dina Kaplan.
But largely because they’ll get more user-friendly: the 30-second ad will make way for 5-10 second interactive pre-rolls, according to SpotXchange CEO Michael Shehan.
Branded content will be a big winner
Advertorials, original videos that tell a story while also carrying the advertiser’s message kill two birds with one arrow. College Humor does this well, by shooting catchy, viral videos inside a frame for Axe body sprays, or Trojan condoms, about the products they are hocking as part of the story.
The problem, however, is that even when he discusses successful case studies, Karbasfrooshan only mentions venture-backed startups. College Humor is part of Barry Diller’s IAC, owners of Evite, Match.com and LendingTree. Hulu is both backed by and competing with America’s largest broadcast networks, CBS, NBC and Disney.
In short, if you want to get a little money out of the online video space, start with a lot.
Image Via: Creative Commons
