AdWeek reports that Paul Kontonis, former online video producer and agency guy, is heading the new Global Online Video Association (GOVA). Kontonis has been a leader in the online video space from its inception, including such roles as founder of “For Your Imagination,” VP at Digitas’ Third Act, and chairman of International Academy of Web Television.
By day, Kontonis heads sales and strategy for one of the top “multichannel networks” (MCNs) called Collective Digital Studio. GOVA is made up of nine of the top MCNs (also called online-video studios and “new networks”). These include Collective, Maker Studios, Fullscreen, Big Frame, BroadbandTV, DECA, Discovery’s Revision3, Magnet Media and MiTu Networks. Machinima is conspicuously absent, but unlikely for long (it’s quite common for the biggest in an industry to initially think they don’t need an association).
Caveat: I know Kontonis and like him (which is why I am allowed to call him a gavone as a term of respect). He was even in one of my videos where I thought I turned invisible. But I haven’t spoken to him in a while and know nothing directly about his GOVA appointment. So this is all my speculation based on watching this space mature. And I wrote a book, so shut up.
What’s ahead, and what does GOVA mean to the networks and the maturing landscape of online video?
Bargaining Power with YouTube. The online-video networks, or “multichannel networks,” will now have a collective voice they’ll need more in coming years. That’s in part because YouTube, the virtual monopoly on distribution, is increasingly turning its attention to more mainstream studios and traditional networks. As YouTube grows, it will be increasingly difficult for individual studios to command the attention they’ve received in the past. How do we know that? History is the best predictor: Initially top YouTube stars could garner attention from Google and resolve issues. But eventually YouTube creators needed the power of a network. The networks don’t know it yet, but in years ahead they’ll need strength in greater numbers than they have today.
Bumpy Road, Herding Cats. Associations can be tricky, as participants theoretically want a collective voice, but they’re also competing against each other for precious advertising dollars. Kontonis has shown he’s got the diplomacy and persuasion to herd these network cats.
Could Slow Down Acquisitions. In the coming years, we’d expect to see more of these online-video networks get acquired by larger players. Discovery ate Revision3. Google ate Next New Networks. GOVA may give some of these players more time to play independently, if they wish, before the eventual consolidation of traditional and “multichannel” networks in the 2015-2020 period. That doesn’t mean the MCNs will be less attractive to acquiring parties, it just means they won’t be as desperate to be sold. That’s a very good thing for individual creators of these networks. (When they do get acquired, they’ll try to convince you it’s a good thing… but as a loyal WVFF reader you’ll know better).
Developing Emerging Channels to Reduce Dependency on YouTube. As we look beyond YouTube, the major stakeholders are technology companies, advertisers, and content creators. Years ago, an individual studio could negotiate their video content onto new platforms — like we saw Revision3 do with Roku and College Humor do with TiVo. But that will be more difficult as stakes increase and traditional networks start seeing more meaningful “TV dollars” moving to emerging channels. This coordinated approach through GOVA will increase the studio’s voice with new platforms. Watch for GOVA serving a role to keep them “out in front” of new platforms — from Roku to Netflix and Hulu to Amazon. And more importantly, the emerging video distribution platforms we don’t yet see coming. Maybe one day even AppleTV!
Other Boring But Important Crap. GOVA can also help with legislation/regulation, advertising formats, metric standardization, growth of the online-video, and thought leadership. Depending on the issue, they will likely partner and challenge other players like IAB, ComScore, traditional media associations, and marketing agencies.
Four More Years. That’s how long I see this lasting. By 2018, we’d expect GOVA to roll into the Internet Advertising Bureau, IRTS or some other association. But no other association has the knowledge of or focus on this medium.
Bottom Line. Creators and studios need GOVA whether they know it or not. Otherwise the technology platforms and advertisers will set the agenda.
While 20% growth on a low base isn’t perhaps “colossal” or “massive,” it is impressive for Yahoo. Yahoo always fancied itself as a portal, hence its loss of audience to search-engine giant Google. In early 2000s I would have expected Yahoo to be the rightful owner of the online-video battle. But it hasn’t captured online video despite many attempts.
Now Yahoo has bumped Vevo out for the #3 position last month. Sure, the audience bar chart shows a steep cliff after Google sites (YouTube). YouTube streamed about 50% of the 40 billion video views in February (and has about 3x the viewers of its nearest competitors). But Yahoo’s growth still warrants some exploration.
So what’s going on with Yahoo? Pick below:
a. Yahoo could be doing a better job of convincing its 177 million unique monthly viewers to consume video.
comScore reports that 181 million U.S. Internet users watched nearly 40 billion videos of online video content in January. YouTube ranks first with 152 million views, and the rest of the pack (Sony’s VEVO, Yahoo, Viacom, Facebook) attracted about 45 to 52 million viewers (about one third of the Google-owned leader).
Some interesting statistics from this month’s comScore report:
> 84.4 percent of the U.S. Internet audience viewed online video.
> The duration of the average online content video was 6.1 minutes, while the average online video ad was forty seconds.
> Video ads accounted for 12.2 percent of all videos viewed, but just 0.9 percent of all minutes spent viewing video online.
YouTube viewers watched 18.6 billion videos in 2012’s first month, and that’s 4 per day per person (by my calculations, which haven’t been reviewed by Stalkerofnalts).
And how about ads? We viewed 5.6 billion video ads in January, with Hulu again leading with 1.4 billion ad views. The advertising networks (who stream ads on a variety of properties) ranked next, with Adap.tv at 652 million ad views, followed by BrightRoll Video Network with 598 million, Tremor Video with 580 million and Specific Media with 398 million.
Finally- YouTube channels? Warner and Vevo lead the pack, but Machinima and Maker Studios (aggregates of top YouTube channels) are third and fourth.
comScore’s September data sheds some light on the non Google video-sharing sites, the top ad networks, and the top-1o channels on YouTube, all of which are professional. The biggest takeaway? The Santa María, La Niña, and La Pinta have long since landed and the corn-sharing Indians are being run off the east coast.
Professional content (or web studios representing amateurs) are leading the charts
The market remains highly centralized among one or two key players
Ads are now pervasive
YouTube is increasing its personal white-glove service among the top 100 YouTube partners (including lavish events), and moving many subordinate Partners to e-mail only deidentified support (this isn’t reflected in comScore).
Now let’s look at comScore highlights…
Google/YouTube retains its leadership with 161 million unique viewers (followed by Vevo with about 57K). More importantly, it clocked in a 378 minutes per viewer, which beats Hulu’s 180 minutes. Hulu’s 27K unique viewers watched 642,000 minutes of video (YouTube’s got 18 million). Also worth noting is Microsoft and Viacom’s overtaking of Facebook and Yahoo (two sites that could have been online-video leaders)
Ad networks run those prerolls and keep the online-video body flowing with life saving blood. Here are the leaders: Hulu is #1, Tremor Video ranked second overall with 811 million ad views, followed by Adap.tv (803 million) and BrightRoll Video Network (665 million).
Professional studios rule the most-viewed channels, but note that some amateurs are represented by these players. Gaming channel Machinima ranked third with 17 million viewers, followed by Maker Studios (which has signed a number of YouTube weblebrities) with 9 million, Demand Media with 6.8 million and Revision3 with 5.4 million.
While YouTube/Google retains its massive lead in online-video viewing, Microsoft is catching up.
I’ve written about comScore’s newest rankings, but failed to recognize that Microsoft quietly crept from #7 (last month) to #2. That fact went largely unnoticed by many of us… is it a variation or a trend? Neither Gralla or Rosoff offer, from my perspective, a solid explanation for Microsoft’s sudden ranking. Perhaps people are using Bing’s video search engine? But why?
This hardly makes sense to me. Today the Bing video site featured Jessica Black (Friday) song. It might have been titled, “search what was popular on YouTube last month.”
comScore’s February data once again shows Google’s dominance in the online-video market, but Facebook is catching up. It’s now the fourth-largest online-video sharing property (see Facebook’s unofficial resource for more information). Facebook, as a sharp contrast from other sites, has short bursts of viewing (far shorter durations than other properties like YouTube, Hulu or Viacom (see BroadbandTV report).
comScore has a nice presentation that shows the “radical” growth of the medium (see download), and the total people relative to streams. It seems that the longer format of professional content (basically TV shows streamed online) is attracting a greater portion of advertising today.
To me, the most interesting part of this report is the acknowledgement that advertising dollars aren’t keeping up with the increase in online-video viewing. While this is probably true for the dawn of every preceding medium (radio, television, internet), it does suggest media buyers are in need of additional adjustments of the “media mix.” This requires better planning, and more creative built for the channel.
Because media-buying agencies (representing top brands) are more comfortable with television, it’s no surprise that Hulu is serving more ads per minute streamed. It’s familiar content and an easier format. Of course advertisers should be looking not just for “comfort” and targeting, but also “reduced clutter.”
Note that YouTube is not leader in advertising delivery (when you look at “ad views”). After Hulu, Tremor Media Video Network ranked second overall (and highest among video ad networks) with 503.7 million ad views, followed by ADAP.TV (432 million) and Microsoft sites (415 million).
comScore today announced that in the third quarter of this year (3Q 2010) about 1.3 trillion Internet display advertisements were served to people in the U.S. (a 22% growth from the same period in 2009).
We were too lazy to register to download the report, but not so lazy as to avoid making “wild, unfounded generalizations and predications” based only on that one piece of data…
In 2011 6-9 trillion display ads will be seen, with a 32% growth in online-video ads.
More than 95% of the ads will never be seen by human eyes
Of the 5% of ads that are actually seen in the U.S., 54.7% of those won’t be in the U.S.
Just 45 people will see the ads: a staggering 95% of some previous subsegment of the 6-9 trillion ads served.
76.4% of the remaining ads will be seen by high-school kids ages 12-18 who impact .04% of the gross domestic product.
Now here’s what the report will really offer, with italics in my words.
The story behind Facebook’s staggering growth (everything edited out of Social Networking: the movie).
New strategies and innovative ad sizes offered by publisher (words like “target” and “accountable” and “ROI” will be included, and some sample ad formats will show how to be advertisers can ride publishers like a drunk Texas cowboy on a wounded Mexican steer).
Category-level trends and insights (both industries covered: financial, travel AND consumer-packaged goods).
Advertising success stories of mid-sized and niche publishers (including data that’s so powerful it’s almost as real as the 3D Yogi Bear… but less interesting).
Tools to generate more sales leads and evaluate competition (tricks like “put together a white paper, demand registration, then call the person 5 times in the next consecutive 11 days”).
Oh I’m just teasing comScore. But about the lower-case C…
We Americans watched nearly 34 billion videos in May, and 14.6 billion (43 percent) were on YouTube. According to comScore (source: TechCrunch), 144.1 million viewers watched an average of 101.2 videos per viewer in May. Hulu ranked second with 3.5 percent share. The gap between Google and Hulu remains strong, and it’s safe to say you’re watching video on YouTube or… the long tail.
I’m fairly immersed in the online-video space, but would have had to “phone a friend” if you asked me some of these questions on “Who Wants to Be a Millionaire.”
Are we consuming more or less television now that we have online video and the mobile players (3 screens)?
What percent of our live television viewing has given way to “time shifted” (via DVRs, TiVo, AppleTV and stuff)?
How much time do we Americans spend in front of the television versus watching online video?
The answers may surprise you. Try to guess before peeking.
As you might have gathered, we’re actually consuming more television according to Nielsen’s “Three Screen Report” (despite the other two screens: mobile and computer).
I must be in a small minority because I watch precious little live television. The rest of the nation consumes only about 2 hours of time-shifted television per week, compared to about 35 hours of live television. Obviously our attention differs dramatically. For instance, my kids are blaring Nickelodeon behind me as I type. But I just noticed an ad for Miranda Cosgrove’s new CD, so maybe that counts.
Now for the zinger. A single amateur can sometimes command a larger audience than well-known television shows. I just made the graphic below for my book, “Beyond Viral” (Wiley). Pretty wild that one dude can swing 50 million views in the past 30 days (according to TubeMogul). Dane Boedigheimer, who produces GagFilms and AnnoyingOrange, was late to the YouTube party because he was soaking in the now set Metacafe sun… but now he’s knocking out more than 1.6 million views per day.
But before you think we’ve all migrated to online video, our average consumption pales when compared to television. We early adopters are still early. Yes the folks that gobble up 35 hours of television are only watching 22 minutes of online video according to Nielsen Wire’s recent chart below. I suppose those 22 minutes might be longer if the majority of us made it past that first 60 seconds (which we don’t according to this way outdated Tubemogul report).
Before you make any major conclusions based on this data, it’s important to remember two things: First, if we looked at a bell curve, we’d observe that these numbers are highly skewed by those that won’t be bothered with online video. I know many people who have abandoned television entirely. Second, this behavior is changing rapidly. For instance, there’s been a 30% plus increase in our simultaneous use of television and web (now I’m hearing Flapjack in the background).
Basically 161 million people watched online video in the U.S, and YouTube maintains a 40% share (followed distantly by Microsoft with 2.2%, and Hulu with even less). So when I use YouTube to refer to online video, it’s like saying “Coke” to refer to soda or “Scotch tape” to refer to adhesive transparent tape.
If you’re a stupid media buyer, here are the ad networks that can help you interupt people during their video-viewing experience:
Tremor Media ranked as the #1 video ad network with a potential reach of 68 million viewers, or 42.2% of the total viewing audience. YuMe Video Network ranked #2 with a potential reach of 59.1 million viewers (36.7% penetration) followed by ScanScout Network with 57.6 million viewers (35.7%).
Or you could try baking your brand message into content that people actually watch… product placement, sponsoring YouTube stars via Hitviews, or creating serialized content and praying someone will watch. It’s a tough call I know.
Hey, no offense Tremor. I know you guys do more than serve video ads… tell us about some of the stuff that works!