(Half the fun of this post is the hyperlinked videos to punctuate the copy).

Below is an ad from a trade magazine, where Yahoo let’s advertisers know their television ads can move online. My immediate reaction (after I puked and rinsed my vomit) was that Yahoo is basically teaching advertisers and brands to annoy its users. Not a good long-term strategy.

Hey, marketer. Hey, marketer. Hey, marketer. Send us your TV spots and money. Hey, marketer.

Then again, Yahoo has long shown it knows its REAL audience is not the silly fools who visit the site, but those that give it money. Yahoo has partnered with larger content providers, fetched large integrated advertising dollars like Fagin’s army of orphans, and countered You “animal farts” Tube with promises of advertising-safe content not user-generated content.

So Yahoo goes after the path of least resistance. It’s not an entirely reckless move. If you’re an online property and see the vast majority of marketing dollars going into television… why not be “an online television set”? It’s easier for marketers to understand, and for lazy media buyers to spend without a lot of work.

No seriously. Prerolls make me obsessed with brands.

Consider the mind of the marketer:

• My VP keeps asking me to shift dollars to online. I don’t want to hassle with a dumb ass branded Facebook page.
• Wait- I don’t have to spend hundreds of thousands of dollars customizing my content for the medium?
• I can just have my “Agency of Record” account lead tell his production people to send the Yahoo people a compressed version of our :30 and :60 spots?
• Then I shift some of my budget allocation? Sign me up. Yey prerolls!

Meanwhile, the consumer is silently skipping or indulging the ads with despise (even the dumbest online site won’t measure or share data on how prerolls have negative impact on brand sentiment). The hapless user/viewer is forced to watch television ads before and during the content they want. Suddenly they start drifting away from Yahoo, and looking for less obnoxious ways to get content and entertainment.

It’s a smart, strategic way to spur a shift of media dollars, even if it comes at the expense of Yahoo’s other target audience (the users and viewers).

Will it work? It might bring some fast revenue, but its sustainability requires a) the non-ad content being so incredible that Yahoo viewers tolerating this, and b) if Yahoo can use this approach as a buyer “hook,” then quickly adapts the ad content to make it engaging (something the ad promises, but is not as easy as repurposing television spots).

A more sustainable approach would be to partner with firms that can create “branded entertainment” (whatever that means to you), or set up rich media entertainment with non-intrusive but inviting ads (the Seven Echo model). But really… does Yahoo have the time or patience for that?

What’s on your RSS or what sites do you visit related to online-video and marketing? Please comment below, especially in the likely event I missed something. I’ll update this, and you and I can find this post again by searching the word “FARTY,” which unlikely appears elsewhere here. I could be wrong.

Yes it’s time again for a round-up of some must-read blogs & peeps related to online video, marketing social media, and the shizzle.

Here’s the problem about finding good websites and blogs about online video. If you add “online video” to a search query, you’ll get a lot of videos about marketing. And the social-media space is just too damned cluttered. Any idiot can write an article about that. I like the writers that touch on the intersection of online-video and marketing, and don’t stray too far into the self-indulgent world of traditional entertainment and advertising, the desperate starving filmmakers overproducing episodic content, and boring crap about technology providers.

Most of these peeps are smarter than me, but I actually spend most of my day marketing and making videos… not a journalist or professional speaker (although I’m doing more and more… someone help me figure out how to charge to speak please). So although my content will give you great secret or bore you to death, at least it’s mostly practical.

• Kelly Samardak covers MediaPost’s Just an Online Minute
• Daisy Whitney does New Media Minute and This Week in Media (I was on it Monday and will be on again next week). She has good hair.
• Shira Lazar brings us CBS’s new “On the Scene” bringing CBS from 2002 to 2010.
• WillVideoForFood (this blog) is written by career marketer and most-viewed YouTube kid Nalts. It’s for marketers and creators, and people that don’t take themselves too seriously. Oh did I tell you I finally got a book deal with Wiley & Sons so I can’t procrastinate the book I’ve been promising for 3 years?
• ReelSEO is a killer blog about SEO, online video, and marketing.
• Steve Garfield is to vlogging what Adam Curry was to podcasting. He’s got a book coming out, but sadly I got axed from the cover.
• David Meerman Scott is to digital marketing what The Secret is to self help, and he’s got a blog.
• Liz Gannes and the NewTeeVee peeps run the definitive new-media site, which fills the void left by The Daily Reel. Remember Felicia Williams?
• Need to know what videos are hawt right now? See Viral Video Chart (select 7 day).
• TubeFilter tracks series and episodic content.
• TilzyTV does the TVGuide thing for the web. The bro’s know the biz.
• Pete Wylie left, but FierceOnlineVideo goes on.
• Metacafe’s former content lead writes EyeView (and since he’s a WVFF commenter he gets a gold star)
• eMarketer has nice public stats and charts that are eye-candy for people trying to change the world.
• Jack Myers is a TV guy with a close eye on new media. The dude is the Trump of the space.
• Tim Street is all about marketing & video with a background doing promos for shows.
• Ford’s social media guru Scott Monty runs his own blog about social media.
• Steve Hall’s AdRants is always good for a laugh and criticism of advertising.
• YouTube has a business blog you probably didn’t know exists.
• Advertising Week has some nice coverage in its digital section. Abbey Klaassen reports well, and does a nice 3-minute show I TiVo, and Bob Garfield doesn’t hold punches.

If I missed you, take a cue from Uncle Nalts. Shamelessly self promote below. Unless your blog is about cats.

Man that headline will sell. Truth is, I am very careful about NOT revealing confidential information on this blog that I learn from Google employees, as a YouTube partner, or through my conversations with industry colleagues or creators.

But most of this is public now, or based on educated assumptions topped with a saucy tabloid-like flare. On a similar note, YouTube’s Business Blog published a refreshingly transparent POV about some YouTube myths recently. Did you know that 70% of Ad Age top 100 marketers ran YouTube campaigns in 2008?

Here are the secrets the YouTube PR folks won’t reveal:

"I've got a secret" -Cindy Brady

1) YouTube is Monetizing Fewer than 9 Percent of Its Videos. But Who Cares? Kudos to Jason Kincaid for doing fancy math to figure out what percent of videos YouTube is monetizing (meaning the site is making money instead of paying to stream and bleeding money). The answer was 8.5%, which is close to AdAge’s 8.7% estimate (CNN Money claims 13%). Of course, monetizing could mean shitty lil’ penny banner buys, decent InVideo sponsorships, homepage takeovers, or premium rev-share deals. It’s long been rumored to be 3-5 percent monetization, but let’s get real. Google could turn that number to 100% by simply running Adsense indescriminately on each page. So I’d be less concerned about the percent than the profitability.

Thanks to YouTube my videos are seen 200-250,000 times a day (yey, Uncle Google). That wouldn’t happen any other way, and I’m only hoping the biz-dev folks enhance the average profit per-monetized video before it bothers chasing the impossible-to-monetize-well long tail. This is happening as we speak with new revenue boosting options.

If I got a penny per view, I’d earn $730,000.00 this year. I’m not, mkay?

2) Algorithms Squashed the Editors. Almost nothing you see on YouTube is by accident… or an editor anymore. While YouTube editors once possessed more power than most network executives (creating instant celebrities by homepage feature pixie dust), the model is now driven almost exclusively by relevancy and economics. Recently, YouTube announced content creators and small advertisers can get their videos promoted for a fee… and not just against search results. Editors continue to serve some role on the “spotlight” pages and community relations, but are not the Titans they were in 2006 and 2007. That said, we still love them deeply because our love was unrequited. Especially when they put us on Partner showcase pages.

Google-Data Robots Eat YouTube Editors' Brains for Fuel

3) YouTube Still Plays Favorite, and especially for “TV Shows.” Lately, YouTube has worked hard to pimp its “shows,” a collection of retro TV that lost its charm faster than Bazooka loses its taste. Ba-boom. There also are some YouTube partners that live on the home-page (CommunityChannel), the recommendation section for new registrants to YouTube, or are “micro-featured” everywhere. We don’t know whether the editors are doing this, or the algorithms are saying: “these guys are good YouTube-addiction starter drugs.” But we do know that if a human does have any input to this “favoritism,” the person is probably really smart, attractive and has good breath. Man I’d like to meet ‘em!

4) It’s All About Your Relatives: Not Keywords and Viral. Think viral-views is the engine behind YouTube? Wrong. It’s about having a steady daily audience (like many, but not all, of the top 100 most-subscribed) and having your videos appear as a related video to popular videos… in other words, via ad, editor or algorythm, getting next to watched videos. Just like being next to a pretty girl makes you look cooler.

A visit to YouTube is often a chain reaction. You start to watch one video, and several related videos draw you deeper. Metacafe was once the master of this, and now YouTube is drawing upon its data-oriented parent, Google, to facilitate what I call the “video roach motel” model. This will get better with time, as we move from “title, tag, description” as being the view driver, to that mystical thing called “relevancy.”

What’s relevancy? I’ll give you two examples: if someone searching Google returns instantly after clicking on a result, that page is penalized on the rankings. Presumably it wasn’t what the searcher wanted. On YouTube, if a video is poorly rated and/or is viewed for a percentage that’s far below average for its total duration, it will eventually be penalized. Example two: on Amazon, there’s a high correlation between Wayne Dyer and Dr. Seuss book purchases, then those two books are related. The machine is getting smarter based on universal behaviors and your own preferences. Soon enough, my audience will be a smaller percent of YouTube but hopefully larger and more appropriate. That’s because we’ll see more of “people who like Shaycarl may also like Nalts.” (And although I may not be as funny or cute, I’ll look thinner to those viewers).

Neither of these models requires indexing the content, mind you. So in theory a video could be relevant to you without the algorithm even knowing what’s being spoken (remember years ago we thought all video would be transcribed to facilitate SEO… and that we’d be driving space cars by now?).

5) YouTube May Not be Hurting, But it’s Hungry. Google was the first to abandon banners and move entirely to a bid model. But YouTube, in a Yahoo-like move, has blitzed in past few months with homepage takeovers. Folks, there’s no reason for ads to represent 50% of the site’s homepage (above the fold) unless you’re trying to show fast revenue. It’s not Googlesque (even if CNN Money maintains that Google hearts YouTube). Of course the rice-sized brained media buyers are using this precious space to simply drive awareness instead of engagement: most of the homepage takeovers are for films, and there’s usually nothing more than a trailer to compel interaction.

CNN Money suggests all is zen-like between YouTube and Google. Hey, even if YouTube captured as much as 1 billion in annual revenue, that’s 1/30th of what Google does. Meh. So if YouTube bleeds a few hundred million to run itself ($83-$350 million in infrastructure/hosting alone, and — who knows — $250 million to maybe $500 million in a year), who cares as long as it has strategic long-term value?  Online video is white hot, and it’s just a matter of expediting the future and reducing the blood loss. Of course, all of this is speculation, and Google/YouTube aint talking.

6) Why YouTube Can’t Discuss Real Profit/Loss. No, YouTube doesn’t want you knowing about its economics, but I have 3 words for the curious: stop asking, idiot. YouTube can’t over or understate financials, yet journalists whine about the company’s decision to not publish profitability (or even costs or revenue specifics). Imagine the channel conflicts disclosure would create! If it’s horrible, YouTube has dimished street credibility with media outlets, downstream distribution partners, and advertisers… not to mention shareholders. If it’s schweet, then it attracts copyright attorneys like watermelon at a picnic. But should YouTube reveal case study ROIs (with permission of advertisers) to legitimize the medium to marketers? Uh- yeah. Glad you asked. I give YouTube a D minus on this.

7) Steven Chen’s Latest Contribution. YouTube won’t likely be issuing press releases about Steven Chen, who has continued to vanish from the public light. But thankfully, Chen disintermediated his employer and shared his latest project — which includes a golf swing. Hey, he’s got billions in the bank. What would you do? Probably build a coffee bar. Or buy the car you’ve saved up for since 2005. For nostalgia, check out Chen when Google bought in.

Shit. This post took me hours of time I could have otherwise spent trying to, um, make money. At least there will be a few comments from the back row. Right?

We online-video watchers are quite different from abnormal people (those who don’t watch). A research group queried nearly 2,000 people (representing the US census data) in April about online-video habits and preferences. The full report, created by Frank N. Magid Associates and sponsored by Metacafe, is called “Opportunities in Online Video,” and available as a PDF here (via ContenttoCommerce).

The basic information is consistent with other research in the field, but I found the following 4 nuggets the most interesting.

1. Nearly half of us (45%) said online-video ads are as acceptable as television ads. I wonder if that includes those ubiquitous Army prerolls on Metacafe?
2. I’m an outlier as a male between the age of 35-55 — that’s the only male age range that rated television as a favorite leasure activity above the Internet. Guys age 18-34 selected web nearly 2-3 times more often than television. So if you’re going to ground them, take away the laptop and stick them on television — and lock it on CBS if you’re feeling particularly cruel.
3. Thirty percent of those 55-65 year olds watch online video weekly, which dispels a lot of the “it’s the younger peeps only” myths. While 70 percent of males ages 18-24 watch online video weekly, the peak range for females is 12-17 (56% watch weekly).
4. Those of us who view video online at least weekly (that’s about 43% of us) are significantly different from non online-video watchers (around 30%). We’re twice as a likely to own an iPhone, purchase virtual goods, and carry a music player. And we’re significantly more likely to be an online gamer and rent DVDs (see chart below).

If you’re an average online-video watcher, then today you’ll watch about 2 videos, and spend 6 minutes doing so. You’ll most likely be on YouTube, but if you’re watching long-form television on Hulu you’re probably skewing the average by watching for much longer per session/view.

People watching online video in the U.S. now watch more than three hours per month, according to new data from Nielsen Online. Studies suggest people, on average, have sex once a week. My sources on sexual frequency and duration are a bit sketchy here, so you can do your own digging.

So, friends, you’re probably watching online-videos for more time each month than you are having sex — depending, of course, on whether you’re one of those 2.7 minute ”slam bam thank you mam” YouTube people, or if you prefer the longer forplay of “Hulu-like” engagements.

And I’m not sure all of that online-video viewing is going to help you in the sex department, but it’s a more reliable, albeit often less climaxic, alternative.

Check out Stephen Shankland’s “Online Viewing Clears Three Hours Per Month.”  Neilsen is the source. Do you know how silly that headline will look by the end of the year? First, we’ll have a more difficult time what’s occuring “online” versus “offline” as devices merge. Second, because that three hours will grow dramatically as people begin to consume an episode of Lost (which is, by my crude calculations, roughly the same time it would take to consume about 20 or so short videos on YouTube).

Here are some other notable points from Shanland, and a pretty chart so you can see that YouTube is dominating viewers and videos viewed. But this is going to change when we look at duration spent per site. After all, Hulu has longer-form content, and Yahoo’s 25 million users could, with a little prompting by Yahoo, start watching more video. Hulu has more ad inventory than it has sold, and one can only assume the ad inventory isn’t sufficient for Yahoo to compel its visitors to consume video. Or perpahs Yahoo visitors are busy enjoying display ads and drinking their Tabs or Mr. Pibbs.

• March viewing rose 13 percent to 191 minutes.   Total video streams viewed increased 9 percent from 8.9 billion to 9.7 billion. And the number of videos per user grew 7 percent from about 70 to 74. 
• If time spent is going up faster than videos streamed, that means a) we’re tolerating 2.7-minute YouTube clips, or b) Longer form content is skewing the average, and we’re continuing to expect our YouTube clips to be 2-3 minutes. I suspect the latter, but Neilsen and the Shankenizer aren’t saying.

The market share:

1. Google’s YouTube continues to dominate the category, with 5.5 billion videos and 89 million people using the service in the U.S.
2. Hulu is in second place with 348 million videos and 9 million users.
3. Yahoo is in third place with 232 million videos, but it’s got more users than Hulu, about 25 million users.
4. Revver is not ranking.

Before we armchair quarterback Geico’s YouTube spend today, let me share a secret story. The names will be changed to protect the innocent.

An extremely popular YouTube star (let’s call him Spiffy) last fall mentioned something fascinating to me in private. A major consumer-products good brand (let’s call them “Yummy Snack”) paid him handsomly to create an enteratining video incorporating Yummy Snack. A member of the Yummy brand team had shared the success story at a conference I attended, but left something critical out. It seems Yummy’s agency hadn’t asked Spiffy to post the entertaining/promotional Yummy video on Spiffy’s channel!

The talented Spiffy voluntarily posted it on his channel, and THAT was the Yummy video that popped. Not one posted by Yummy Snack on some branded YouTube channel page. Not because media dollars drove views. I thought that Spiffy’s generous move was so cool, I’ve decided not to call out Yummy’s agency on this horrible oversight.

YouTube might have saved Yummy, but can you blame them? Google is more concerned about selling media dollars than tipping off agencies to the organic power of a star’s audience.

YouTube doesn’t make money when a promotional video goes viral… only when there’s an ad buy.

I like to think agencies have learned something in the past year, so it’s sad to find history repeating itself even today. Geico insurance purchased the expensive YouTube homepage spot to boast its ”Gecko & Numa Numa kid video,” which prerolls (without audio). Today’s ad spend cost the Geico more than you or I make in a year, and Gary Brolsma (NumaNuma), the online-video sensation, isn’t posting the video on his own channel concurrently.

Are you kidding me? Much of the value of the YouTube stars is his or her embedded audience. Most stars have fans that will propel the video to the top of the “most watched” and “highest rated,” and share it with friends (assuming it doesn’t suck).

As an example, if Fred made a video endorsing Poprocks, his video would get million of views. If the agency posted it — even with some advertising dollars promoting it — it would get far less.

For a moment, let’s put aside the debate about Geico’s agency associating itself with the NJ kid who is mostly a “one-hit wonder” lacking a recurring audience.  Numa only has 35K subscribers and his recent videos are fetching just a few thousand views. Even so, Numa dual posting the video would certainly attract views for an ROI that’s as good as any media spend. The agency gets credit for driving homepage views to its own ”Its the Gecko,” channel instead of Numa Numa’s… but one can’t help but wonder if there’s a longer vision for that branded channel or if it was an afterthought.

Why on EARTH would Geico not pay Gary a few clams to post it on his channel? Even without a lot of daily views, Gary could have posted it on his channel concurrently, and gotten views by:

• Showing us a “behind the scenes” footage
• Featuring the video on his channel page
• Making the Geico spot a video reply to his big hit, where it would get residual views

I’d love to know if this was an oversight or a thoughtful decision because, for instance, Gary wanted more coin to distribute it than made sense for the agency. But absent that, it’s going to be my case study for being “half pregnant” on YouTube– smart enough to tap a star and invest in media, but not savvy enough to tap into the creator’s audience as well.

The lesson: It’s not smart for brands to tap into know YouTube stars without buying media, and it’s not smart to buy media without getting some “street cred” from a known YouTuber. It’s smart to do both. Who’s going to help brands figure this out?

(I’d like to use the case study I referenced at the beginning, but the star would get tainted by the agency for mentioning this slip and ”Spiffy” doesn’t deserve it).

hot off the press…

A YouTube for All of Us
As a community, we have come to count on each other to be entertained, challenged, and moved by what we watch and share on YouTube. We’ve been thinking a lot lately about how to make the collective YouTube experience even better, particularly on our most visited pages. Our goal is to help ensure that you’re viewing content that’s relevant to you, and not inadvertently coming across content that isn’t. Here are a few things we came up with:

* Stricter standard for mature content – While videos featuring pornographic images or sex acts are always removed from the site when they’re flagged, we’re tightening the standard for what is considered “sexually suggestive.” Videos with sexually suggestive (but not prohibited) content will be age-restricted, which means they’ll be available only to viewers who are 18 or older. To learn more about what constitutes “sexually suggestive” content, click here.

* Demotion of sexually suggestive content and profanity – Videos that are considered sexually suggestive, or that contain profanity, will be algorithmically demoted on our ‘Most Viewed,’ ‘Top Favorited,’ and other browse pages. The classification of these types of videos is based on a number of factors, including video content and descriptions. In testing, we’ve found that out of the thousands of videos on these pages, only several each day are automatically demoted for being too graphic or explicit. However, those videos are often the ones which end up being repeatedly flagged by the community as being inappropriate.

* Improved thumbnails – To make sure your thumbnail represents your video, your choices will now be selected algorithmically. You’ll still have three thumbnails to choose from, but they will no longer be auto-generated from the 25/50/75 points in the video index.

* More accurate video information – Our Community Guidelines have always prohibited folks from attempting to game view counts by entering misleading information in video descriptions, tags, titles, and other metadata. We remain serious about enforcing these rules. Remember, violations of these guidelines could result in removal of your video and repeated violations will lead to termination of your account.

The preservation and improvement of the YouTube experience is a responsibility we share. Let’s work together to ensure that the YouTube community continues to thrive as a positive place for all of us.

The YouTube Team

…

Brief Editorial:
by Zack Scott

1. Why should videos be demoted on profanity alone? Why not just hide them for people not logged in and are 18 or older?

2. Some of YouTube’s most popular stars…Bo Burnham, Charles Trippy, sXePhil, Chris Crocker, Mark Day, etc…(name as many as you want) all have used profanity.

3. The new thumbnail idea sucks. Now what if none of the thumbnails are good?

4. YouTube sometimes features videos with profanity.

—————–

OK, now I finally understand YouTube’s “Stricter standard for mature content”

“Videos that are considered sexually suggestive, or that contain profanity, will be algorithmically demoted on our ‘Most Viewed,’ ‘Top Favorited,’ and other browse pages.”

They must not like sXePhil.

Sophia (aka Mugglesam) goes to a Canadian Internet conference and meets the viral video genius. So fascinating to relive this day through the eyes of a shorter child than me.

And if you’re marketing to kids or parents, help me understand why you wouldn’t make Sophia your spokeperson. Because otherwise she might be a tractor when she grows up.

!

discuss!

Your Uncle Nalts will be talking about viral video and marketing at the Yahoo! “Big Screen, Little Screen” event July 9 in Toronto, Canada. My topic is “The Secrets of Viral Video Marketing.” The funny part is that I was a late edition because Dan Ackerman Greenberg couldn’t make it.

Seriously. I couldn’t make something like that up. In case you don’t recognize the name, he’s the guy who wrote the TechCrunch article about how marketers can “game” YouTube with fake thumbnails, fake comments, et cetera. This blog called him the Wicked Witch of the West to my Glenda the Good Witch, and that’s something you don’t soon forget.

Dan- do you want me to renew the URL I parked (www.viralvideovillain.com) pointing to your LinkedIn page?

P.S. Y’all like the new masthead designed by The Most Excellent Gage Skidmore? He’s with Cosmic Flight.