Tag Archives: to

Why Nobody Clicks Ads

Thanks Jan for sending over this article titles, “Do You Know Why Nobody Is Clicking Your Ads.”

http://www.mequoda.com/articles/web-advertising/do-you-know-why-users-arent-clicking-on-your-ads

It’s true that ad units generally decrease on interaction rates as people get used to them. The article cites a .09 percent click thru rate, but I’d say that’s being quite generous. It’s also worth noting that some ads are measured not by clicks but by recall rates (and how they improve as measured by surveys).

The piece does have some nice pointers about making ads look less junky (and, duh, relevant). The more flashy and obnoxious, the more they’re ignored. As Brad Aronson (author of Internet Advertising, Wiley) told me… The best color for an ad is the same color as the website. When an ad looks like editorial it gets more attention.

In my experience reviewing eye-tracker studies there are lots of learnings… And the vast majority of ads are “impressions” that make no impression– they literally are never seen by an eye.

The nice thing about video ads (especially mandatory preroll) is while they’re somewhat intrusive… The recall rates are generally far better.

I gotta go poop now. Bye.

America’s Funniest Videos Versus YouTube

  • Why has America’s Funniest Videos (AFV) not died in 20 years even despite the age of “instant gratification via YouTube”?
  • How does AFV manage the logistics of culling through massive amounts of user-generated clips?
  • How many clips does AFV producer Vin Di Bona own?
  • Why has no other show or format “cracked the code” of televising web clips until, perhaps, Tosh 2.0?

Wired Magazine solved many of these age-old nagging questions in “Painfully Funny: Why America’s Funniest Home Videos Won’t Die” a recent issue by Brian Raftery. Note Raftery’s choice of “won’t” versus “hasn’t” or “can’t.”

Some quick AFV-facts (below) were fascinating news to me, and I’ve watched the show since 1989 with the love-hate relationship you perhaps share. Sure, I dig the poodle in a congo line and giggling quadruplet babies, but my spoof (now at 12 million views) tells you how I see the show. All that’s missing is Sagat’s painful impersonations — the chalkboard scratch of the 1990s.

Fun Facts:

  • Di Bona is like the porn king of user-generated videos, and is sitting on an exclusive library of 104,000 plus digitized clips, all carefully tagged with words like “cat (4K plus), parrot, baby, snot (265), itchy, zipline, sea turtles and lick.
Bergeron is gold. But someone may want to update this photo. When's the last time you held a VHS tape or burned a DVD?
  • Why, despite Sagat’s horrible humor, sound effects and voiceovers, did the show survive? Because in the 90s it was impossible to share clips and nobody was culling them. Luckily Tom Bergeron and a smart writing/editing staff have fine-tuned the model. Bergeron is like Ryan Seacrest. Each sound, facial expression and body movement exudes confidence, is inflected with precision, and yet is approachable. I watch them like you may watch professional ice skaters (I tend to prefer the latter only when they spill).
  • Did you miss a key word of my first bullet? Exclusive rights, which is extremely rare in today’s digital economy. That’s why David DeVore, a Florida real-estate agent, made a smart decision to turn down “exclusive,” in a move that’s given him far more than even AFV’s top $100,000 prize (and since the clip involves a minor under the influence of a drug, it might well have never left AFV’s faults, points out Raftery’s Wired piece). I just found DeVore’s note to me: in the weeks after “David After Dentist” exploded: “Do you have any advice on what to pursue? Maybe its nothing, I dont know. Is youtube partners a good option? Are there other things to look into?” I rushed to bring this to YouTube’s attention, although it certainly would have happened without me. It takes a lot of home commissions to reach what he’s earned from that clip in advertising-revenue sharing, and he owns it… not Di Bona.
  • The show’s secret formula is that it stayed away from video “stories” (beginning, middle and end) in lieu of micro clips that have global appeal… I’d see FailBlog as today’s version, yet many of its clips are ripped and certainly not capable of monetization. I sent my 1980s videos to Di Bona when I saw a “call for entries” that preceded the original broadcast (I can’t remember signing a release, but I’m sure I’d have signed away my life at that time). I was tickled to see some of my videos on the early promotions of the show, although I don’t believe they’ve ever been in the show. For two decades people have asked me why I don’t send videos to AFV, and I now have two simple answers: my videos aren’t AFV gold (with a few exceptions like Charlie and the Santa claus) and I don’t like exclusivity. No AFV grand prize could offset what YouTube’s done for me.
  • Charlie and Santa, having surpassed ever slightly the “50K views or lower” AFV requirement, would not make it eligible for AFV. They’re smartly avoiding online memes and popular clips. That’s a distinct advantage over shows that recycle clips most of us have already beat to death. To be considered for AFV, of course, I’d have to take down the video and cede any upside that might come otherwise (the clip has been on television but no exclusivity was required).
  • The AFV videos are recycled less often than you’d think. In periods Di Bona received 1,000 videos a day, sometimes barely any, and other times 2,000 per week. If he relaxes his exclusivity clause and invites easy web submissions he’ll get far more entries even if worse in aggregate (that would lower the bar for home-video creators, making it less effort to submit, and perhaps overwhelm his staff reviewing loads of nonsense). Relaxing the exclusivity requirement would also change the business model since by air time we might already be sick of the Sneezing Panda.
  • The most interesting fact about the Wired article? No mention of Cute, Win, Fail... which I think is a brilliant adaptation of AFV for YouTube… with potentially a higher potential revenue source long term.

Bottom line: should people submit to AFV or YouTube? That depends on the power of your clip, and whether you think you’re a “one-hit wonder” or someone who wants to make this your passion. Most likely your clip isn’t going to go “David After Dentist,” but get lost in a sea of sameness. But I’d certainly test it on YouTube, and see how quick it gets views. If it caps at a few thousand and doesn’t appear to be moving, odds are it won’t (though it’s possible). Then you’ve got higher upside on AFV, although you may never see it on television or make a dime. For me, the odds of winning the coveted $100K prize just seem too low… and my videos are usually pranks or mini-stories, so they’re not an AFV fit. So when I hear the word “exclusive,” I hear “if this thing starts making loads of money, you won’t see a dime.”

Google Eats Its Own Dogfood: 7 Ways Its Using Video

Okay let’s just get this out. I’m a big Google fan, user, and customer. I’m also making non-trivial income from Google’s YouTube Partner program (through ad sharing on my Nalts videos seen 200 million gazillian times). So I really hesitate commending the company in a post headline. It looks I’m friggin’ shilling incognito and I hate that crap (see my parody on f’ing buzz marketing).

Instead I prefer to prank, complain and criticize the company to ensure my “checks and balances” are in place. It can border on “biting the hand that feeds you,” but I’ll call it tough love. You don’t own me, bitch (sorry I’ve got an authority issue).

Today’s post, however, is to observe that Google’s brain seems to be developing a frontal lobe (the rather useless part of the brain where insanity and marketing occurs). I’ll be damned if Google isn’t using video (even the YouTube player to keep Salar “Little Superstar” Kamangar happy) in increasingly effective ways. (The marketer rubs little puppy’s tummy and says good boy, as he naively thinks he’s more evolved than a wonderfully blissful animal).

Parenthetically I literally laugh outloud every time I refer to the head of YouTube as “Little Superstar” because I’m aware it appears so completely inappropriate and racist. But I’ll trust you WVFF loyalts will know that if I really felt that way I’d suppress it incredibly well. I stereotype into only two segments: people who make me happy and people who suck away my will to live. Anyway Salar isn’t even Indian he’s Persian or Iraq, and frankly I don’t know the difference or care. I just needed something to use to “downsize” him, since my ego is threatened by him having the coolest job in the world. It was the same thing with Chad, but Chad was a much easier victim since he generally looked stoned.

I wonder if Chad and Samar ever went to Dubai together and ate sushi off of woman’s stomaches.

Okay back to the news. Google using YouTube shouldn’t surprise us at first glance, but put aside Google’s products and branding (it’s hard to do), and ask yourself a question. Do you see Google as a great marketing organization? Or put more succinctly, how well does it tap the advertising medium that feeds it? Right your reaction because I’m coming back to read ’em.

Google historically has done almost no advertising for itself. It kept quiet, muted PR, and rarely showed evidence of advertising/marketing competencies from an external view. Sure, you might credit YouTube took out a Superbowl ad years ago (side note: good luck finding it on YouTube). But I’m convinced that was not for viewers, but simply to sneak access to “Superbowl Buyer’s Man/Boy Club” to pitch well-funded brands on the merits of diverting TV dollars to web.

But now I’m seeing real signs of life. Google print ads with direct-response offers? A discount on Google ads and to encourage app purchases? Really? It’s like watching my son Grant suddenly blossuming academically and reading voraciously. I know I had nothing to do with it, but I’m proud of the double G’s. Sidenote 2: Did I ever tell you I had a clubhouse in my house that I named Google in the late 1970s? Note to self: get time machine, go to 1995 and squat domain name for your childhood clubhouse.

So now the engineering anthill is using video to engage customers and promote? How charming! Let’s review recent and cumulative examples.

1) Branded Entertainment: Today we see a “Google Doodle” (typically an illustration of the logo marking an event) taking video form. The typically clean/sparse homepage features not a small custom image, but an embedded player with a nicely done Charlie Chaplin homage.

2) Satire/Entertainment: On April Fool’s Day Google pulled its annual prank by rolling out advanced “Gmail Motion” via video. The new solution featured a typical Google product director’s awkward monotone, complemented by a model (Steve Buscemi) demonstrating how physical movements (thumbs up, waves) can be interpreted it into text. One might expect a collective drone if he/she concedes that it was a clever prank, but I liked it. Why? It wasn’t too far fetched, it was executed fairly well, and I interpreted it as a subtle diss on Apple and its self aggrandizing swipes, pinches, and three finger whatevers.

Steve Buscemi in the Gmail Motion prank video

3) Product Launch: Google is increasingly using video to promote and teach out new products (see “advanced gmail” video). Sure Google has been criticized for a somewhat dated approach to product marketing (and some “areas for improvement” in its design/test/launch). But the sheer number of new innovations have me increasing my daily time-share significantly, and I want a Google GPS, Android simulator on my iPhone, and a Google-search brain implant for “just in time” information.

4) Humor: I’m not kidding. You have to look hard, but there’s humor lurking in the hallways. It’s probably like a secret society afraid to draw attention to itself among fellow engineers. But there’s the humanized personification of Google auto-complete (Hiring Autocompleters) that was funnier than its view count would suggest. (Last minute update- I was searching for more examples before hitting post and I remembered I was part of “Demo Slam” to promote additional tools/solutions to a broader audience… now you’re going to think this whole post was motivated by that, and you can kiss my ass because I nearly forgot I did it.

5) Public Relations: Remember all the drama about privacy invasion resulting from Google Earth (buttcrack) and Google Street View pictures? This video that shows “behind the scenes” of Google’s streetview camera vehicle. It replaces the images in my head of a creepy zit-faced MIT intern driving a black van, snapping photos, and wearing no pants.

6) Education & Community: Google uses videos to support community, health education, public service and economic summit Davos whatever… but that’s so damned boring I don’t feel like writing about it.

7) There is No Seven. I just don’t like posts with six items. Actually seven is “reader’s choice.” What’d I miss?

Video Secret: How to End Your SNL Skit

What was the best season of SNL you can recall? Wait let me ask it a different way: which of these years did you like best and why:

  • the Belushi years
  • Eddie Murphy
  • Dana Carvey
  • Chris Farley
  • Tina Fey

And why is it that 85% of the best potential comedy fail one one singular account? What’s the missing ingredient that could have made a funny bit a “Cowbell” moment? The fuckin’ ending. The same is true with speeches, movies, books, television, human interactions and online video.

Good people know how to start and carry a conversation. Great people know how and when to end one.

That ends today’s abbreviated lesson. But if you want to read one of my most important and stream-of-conciseness posts, click “more”

Continue reading Video Secret: How to End Your SNL Skit

20 Free Tips to Get Your Videos Seen on YouTube and Beyond

It’s been a while since I’ve summarized some of the most important factors to getting your videos seen. This post is based on my own YouTube creator experience, my work with big brands, and my book (Beyond Viral). I’ve also written a free eBook called “How to Get Popular on YouTube Without Any Talent (version 2).”

Here it is:

How To Get Popular on YouTube (free eBook, version 2)

I’m sure I missed some current best practices so please add your own thoughts below!

1. Hook viewer in first 10 seconds (teasing highlights)
2. Keep it short. A one-minute video will almost always trump a 3.
3. Encourage interactions- get people commenting and, like Facebook, your YouTube video will rise higher. Controversial questions to viewers can jolt views.
4. Personalize it. Look at camera as if it’s a friend’s eyes and don’t assume your viewer knows you.
5. Include real laughter. Laughter induces laughter like yawns influence yawns. Get a sidekick who has a contagious laugh.
6. At the end, provide something unexpected or bedbug. See how you didn’t expect the word “bedbug” there?
7. Include animals. We humans like animals more than humans. Babies are clinchers too. Giggling baby with an animal? Golden.
8. Take the “road less travelled.” Sure, boobies get views but if you base your video on something already seen, your video is less likely to break through clutter. Show us something we’ve not seen (or rare to see) and people will share.
9. Real trumps script. Almost all of my top videos are not scripted bits but real, candid moments.
10. Appeal to heavy video viewers. Teenagers drive significant views, and even adolescents and Tweens (Annoying Orange). Test your video on this audience and note when they laugh or get bored.
11. Post regularly. The most popular and most-viewed YouTubers post daily or on a predictable schedule. Fresh outsells good.
12. Flow with current events. Selectively parody topical news or “Memes” and you’ll be topical and more relevant.
13. Take the title, tags and description very seriously so your video can be found easily on search engines like Google (and don’t think YouTube isn’t a search engine). You can even transcribe the video and add the text. Important terms: “how to,” “why does,” “who is,” “when is…”
14. Watch top creators for new ideas. For instance, most top web stars are providing thumbnails of other videos at the end of their video. This keeps a viewer from wandering off to “related videos.”
15. Post at right time. Stay away from weekends and Friday afternoon (when there’s a lot of viewing but heavy competition). Mornings are good and Tuesday is a heavy consumption day.
16. Someone once said a new blogger focuses on their blog, but a seasoned blogger is roaming. Likewise you want to appear in videos by people getting more views. The kind plug by PrankvsPrank for my recent “Itchy Butt” prank drove more views that from my base of 250K subscribers.
17. Chill out on “subscribers,” which is as meaningless as “likes” on Facebook. 100 fans are more valuable than 10,000 subscribers that accidentally subscribed from the stupid “box for box” feature (where if you subscribe to one channel you can passively subscribe to their friends.
18. Jump start views on other social-media channels like Facebook and Twitter and Tumblr and Reddit (watch out for being seen as just tooting your own horn though).
19. Listen and talk back to your audience. When a creator acknowledges a viewer comment a bond is formed that is the lifeblood of a recurring audience.
20. Go for quantity not obsessive quality. I could never have predicted which of my 1000 videos would get tens of millions of views, and there’s a lot of power to trial and error. There’s almost an inverse relationship between the time I spend on a video and the views it gets.

Finally don’t judge success by total views alone. Whether you’re a marketer or entertainer, not all views are created equally. Focus on engagement, comments, view duration, and getting to the right audience. A niche show meeting an unmet need is going to work more effectively than trying to please broad audiences.

What did I miss? Obviously the most popular videos are those involving dancing, music, comedy, satire, politics, sex, babies and animals. Don’t underestimate the power of the thumbnail (image representing the video) too. But any general tips I missed?

Online Video Tips for Small Business (MSNBC)

Get some coffee or program your TiVos, kids.

That video I shot Sunday for MSNBC Small Business (see MSNBC/Amex site) is going on television not the web (glad I didn’t quite realize that when I shot it, or I might have gotten nervous).

It airs this week 3/20/11 at 7:30am EST and will re-air Saturday, March 26th at 5:30am EST. This timing should work well for small businesses and entrepreneurs since they never sleep. And the YouTube peeps? They’ll still be awake from the night prior.

In the meantime, you can check some of the tips I shared with AOL small business, or buy Beyond Viral (Wiley) at your local bookstore or Amazon. And tell your friends at ABC and CBS they should book me. 🙂

Oh- I made an epic mistake on the video that I’m hoping people think was intentional because it’s so blatant. Be the first to notice it and comment below, and you get a free piece of cheese (and maybe an autographed copy of Beyond Viral if I actually remember).

Value Not Viral

A couple weeks ago I was at General Mills speaking to marketers along side the Pillsbury Doughboy. Come to think of it, it was a lady who marketed the little fella’s crescent rolls. But I prefer the first way I recalled it, so roll with me.

Somehow along the way I stopped using “entertaining” and “educational,” and started using the term “value.” It seemed to be a core tenant of good brand videos online, and a far cry from most advertising. When we have the option to watch (or not) valuable content will always trump advertising. There are a handful of Crescent videos that show how to cook home made meals using the rolls. Hey let’s teach people a skill they see as valuable (which favors our product), instead of beating forever the “reach, frequency, single minded proposition” drum.

The idea of value (for viewers and the brand) kinda stuck. Just this weekend I shot some video for MSNBC Small Business that asks businesses to think less about “going viral” and more about how to create value. While conventional wisdom says “value” is entertainment (cute, funny, twisted, surprising, bazaar, outrageous, dancing, babies, music), a lot of companies are going the simple “how to” route, and search-engine optimizing their video content to answer customer questions.

Go looking for a cake recipe and you’ll probably find a video that was produced for Betty Crocker. It’s content supported by ad dollars and it’s smart. Yesterday I went searching for a replacement for my digital SLR that died from a son-induced tripod spill, and I would have been thrilled to find an objective shopping guide. If it was produced by Canon, Olympus or Panasonic/Lumix I might have been skeptical. But if a manufacturer did produce it objectively it would have meant a lot to me.

In keeping with the “value” over “viral” theme, check out Revision3’s Jim Louderback identifying 7 opportunities you might have overlooked about online video. He talks about tapping YouTube stars (I was quite influenced in my camera purchase by the choices of my favorite YouTube personalities) and about the power of how-to. His seventh has an acronym “OTT,” which I believes he means as “over the top.”

Hey that reminds me. I have a digital camera blog I forgot about.

Models for “Signing” YouTube Creators; Tips for Advertisers, Studios & Stars

Several trends are causing many independent “YouTube Creators” to sign with “new establishment” (web studios) such as Makers Studios (good luck finding its website), Next New Networks, The Station, Howcast and Machinima. Many early web studios were formed to create and promote custom shows for wide distribution. But the high investment ($1-$5K per edited minute) could not be sustained by the modest advertising dollars moving into the medium. In the past year, most have abandoned custom shows and are signing proven YouTube talent, many who have low costs, but large and steady audiences that are valuable to advertisers.

The trends driving these deals are:

  • It’s a buyer’s market. YouTube advertising revenue is relatively depressed because it’s new and driven mostly by Google Adsense, which allows even small advertisers to target viewers. The revenue model is largely based on “cost per thousand impressions” (CPM), and the income to the creator is mostly hovering at a modest $1 plus range… obviously YouTube pockets a portion before the creator is paid. Since an advertiser is often willing to pay far more for a targeted view, there’s plenty room for an intermediary who can command higher CPMs. Despite Google’s large salesforce, the display team at Google is relatively small. As I’ve said before, most media buyers are opting to put dollars into other sites because YouTube is less flexible.
  • Many solo acts have significant monthly views (mine alone are 5 million plus), but can’t justify selling their own inventory.  However if a network can assemble a collection of creators that are attractive to certain industry advertisers, they can rationalize a salesforce and a premium.
  • The marketplace for talent is growing increasingly competitive, making it more attractive to independent creators to share in such fixed costs as management, marketing and production. Many solo acts on YouTube lack even basic talent representation, and don’t know how to find sponsors or price their sponsorships (and some are not willing or capable).
  • Budgets are flowing online dramatically, as video consumption increases. YouTube has missed a significant portion of online-video budgets because Google’s emphasis remains on paid search (while smaller properties are focused on pursuing larger digital budgets and even television budgets). This is changing, and could become more complex as the lines become less clear between YouTube (which has often proclaimed to be a platform not a network) and web studios (like its rumored acquisition, next New Networks).
  • Cross promotion across creators can grow the size of an audience significantly, and collective groups (like The Station) can expose individual shows/stars to audiences that might not otherwise know they exist. Many creators have sought alliances because there’s strength in numbers. The brat-pack model is not to be underestimated, even though shared successful YouTube channels are rare.

While few web studios and creators will reveal detailed terms, here are a few models that I’ve seen first hand. I will avoid revealing specifics or suggesting which studios gravitate to various models. Even within the same web studios, the deals can vary dramatically based on the creator’s negotiating skills, their content quality, and their audience size. Most deals are more nuanced than the following, but here are some simplified examples:

  • We own you. Small “up and coming” creators were often willing to effectively sell their show to a web studio and become compensated at a fixed price per episode. This is increasingly rare, as it is risky to both the studio (who can’t be sure the star/show will succeed) and the creator (who loses the otherwise unlimited upside potential of a solo YouTube artist).
  • We own 50% to launch you. Some “web studios” sign new talent with a revenue split. A talented but unknown creator can gain accelerated growth via appearances in the network’s already popular shows, and in return provides a portion of his/her YouTube Adsense dollars to the studio. Both this model and the previous require the studio to “claim” the channel via YouTube, and then pay the talent in some form: usually a month after the studio is paid. YouTube is attempting to make this easier for the creator, studio and advertiser… but it’s still fairly complicated to execute. Since the creator can become blind to the actual revenue their channel receives, it requires some trust.
  • We “mark you up.” Since the average ad CPMs remain modest, some studios are able to offer a creator/show a premium CPM (income per view) that is higher than that to which they’re accustomed… but sometimes capped. For instance, the studio may promise to pay the creator $2 per thousand views, and pocket any incremental revenue. This makes sense if the studio can sell the inventory at an ongoing premium, and is even more attractive to the creator if the studio can promote and grow the channel as well. However it means the creator may not benefit from what I’d expect to be higher CPMs in the years ahead.
  • We split incremental proceeds. A more mature YouTube star may negotiate a deal where anything in excess of their regular YouTube “Adsense” revenue is split. The studio may, for instance, sell a series of sponsored shows to a brand or advertiser, providing a complement to typical display ads (prerolls, banners, InVideo ads). The studio also may offer additional “value ads” that are not easy to execute via YouTube directly (such as having a collection of creators promote the brand on their Facebook and Twitter profiles). The creator may occasionally get a fixed sponsorship income (a few grand) to provide messaging within the show, and the display ads are marked up during a specific timeline. We’ve seen programs like Howcast’s GE Healthymagination that involve a number of YouTube stars working together or sequentially. In some cases YouTube manages these directly, contacting top talent to participate.
  • Pay per sponsorship. Some studios remain strictly in the pay-per-sponsored video space, providing advertisers with a flat fee for a series of videos that mention a product or service. A creator who fetches 200K to 1 million views per video can command o5-50K for a single sponsored video, and the studio takes a percent. Again, YouTube does many of these programs directly since the marketplace for these programs is still immature. Hitviews was one of the early companies for these, and Mekanism is doing some now. In my experience, it’s far more profitable to a creator to do them directly via YouTube… but there’s little a creator can do to increase the quantity of these. They’re bought not sold.

In this blog and my book, I’ve argued that advertisers and creators need intermediaries to facilitate sponsorship programs when they go beyond traditional ad buys (invideo, prerolls or adjacent display ads). When I consulted with Hitviews, I helped orchestrate some of these complex sponsorship programs, and they require skills that are rare in traditional and digital agencies. They’re difficult to sell, tricky to execute, and require cash reserves — since creators must sometimes be paid before revenue is received from advertisers. I’ve also done these directly with advertisers since I have a marketing background, but that’s not easy for most creators. Still, these sponsorships are lucrative for creators and extremely valuable for brands. They take the advertising message to where it has greater influence (within the show) and cannot as easily be ignored. They’re also perpetual annuities for brands. Some of my sponsored videos have garnered significant views long past the campaign’s period.

Audiences can be tolerant of these sponsored deals as long as the creative is strong, and a webstar or show does not do them too often. To see some of my own sample sponsored videos click here. You’ll see that most are not heavy on the promotion since that can severely impair views, ratings and comments. My income for these has varied radically, and often does not correlate with the total views of the videos. In a few cases, the advertiser has paid YouTube to “spotlight” the videos, but most of the views are organic.

I have seen some of my favorite YouTube creators fatigue audiences by accepting numerous sponsored deals (especially in a short time period). I’ve seen both extremes: the advertiser paying far more than it should (based on quality of the video or total views), or the creator selling out for a modest fee (and sometimes not paid at all).

Here are some tips first for advertisers/studios, then for creators. My emphasis is on sponsorships rather than “signing,” since the former is more common.

  • Advertisers or studios should not, in my opinion, subsidize a show’s creation. That can get cost prohibitive to a brand, and can result in mostly paid views. Those are not nearly as valuable as “organic” views (where a show already has a recurring or loyal audience).
  • I believe advertisers should provide at least 50% up front (like with any media buy) and withhold 50% based on performance metrics (total views). This ensures the studio has sufficient funds to attract and pay creators, and also reduces the risk to the advertiser. However it seems studios and YouTube often commence campaigns before getting paid, which results in ridiculous long gaps (3-6 months) between posting a video and getting paid for it.
  • Studios (and advertisers) should be careful about the stars/shows they pick. Some have a reputation for delivering content that meets the needs of the audience and the brand, and others are known for turning in marginal content, missing deadlines, or even harming the reputation of the brand. It is difficult for someone not extremely familiar with YouTube and creators to vett them well. For instance, I was approached recently by Best Buy despite my disdain for the company.
  • A good “match maker” will instantly know what creators/shows are right for different advertisers/sponsors, and that requires more than an understanding of a channel’s demographics. Since most popular YouTubers ignore e-mail, it’s not easy to catch their attention even when dollars are involved. If I had a dollar for every false-positive “sponsor,” I could buy YouTube from Google.

Creators:

  • Creators should be very careful about signing “exclusive” deals, which limit revenue in other mediums or distribution channels beyond YouTube. I’ve been offered large monthly sums to move my content off YouTube and have never regretted declining. I’m also glad that I’ve never put a ceiling on my income, or provided any videos to a third-party with exclusively.
  • Since the CPMs are likely to get higher in coming years, I’d be reticent to sign a deal that locks me into today’s CPMs. If an advertiser can command higher CPMs for a specific video or time period, that’s nice. However I wouldn’t want to lock myself into $1 per 1K views, and then watch the average CPM rise.
  • It’s a good idea to have a time period attached to a deal, and opportunities for either party to exit. This is especially important since some of the web studios could be acquired by companies that may change the dynamics between the creator and the studio. It’s also important to have an agreement if an advertiser needs to remove a sponsored video (I’ve seen this happen more times than you’d imagine).
  • I urge creators to seek clarity about studio-exclusivity deals. A smaller creator will delight at signing with a studio that provides lots of new sponsorships. However what happens if that studio isn’t selling deals? Or if the studio is asking the creator to promote brands they don’t like? Or if the studio requests more sponsored promotions than the creator feels is appropriate (Smosh)? Is the creator obliged to take whatever deal the studio secures, or can they decline? More importantly, what happens if the creator is approached directly by a brand? Is he/she still permitted to do a sponsored video, and if so, are they obliged to provide a percent to the studio? Part of the reason I haven’t worked with Hitviews in more than a year is because it resented me working with other companies (YouTube directly or Howcast), and yet wasn’t providing a steady flow of well-compensated sponsorships. I’m still a fan of founder Walter Sabo however.
  • As online video begins to behave more like traditional television (where YouTubers are TV shows, and studios are networks like Fox or ABC) the dynamic could change dramatically. But it’s still a maturing industry, and deals very often favor one party far above another. So regardless of what is in writing, a relationship of trust is vital. There’s a certain “give and take” that is important for all parties involved (advertisers, intermediaries and show creators).
  • In general, I would rather be known as a pushover than a jerk… and the race is a marathon not a sprint. I have been “screwed” a few times, and have left money on the table (and I’ve steered clear of those people since). But I try to be flexible and make concessions knowing it’s a small industry, and that a professional, low-maintenance creator is more likely to earn the long-term trust of a variety of players that can provide income and other opportunities.
  • Finally, don’t be afraid to say “no.” I’ve seen several of my friends decline a modest or unfair offer, only to receive a much more generous one.

I’d welcome your comments if you have your own learnings… or your questions if I’ve been unclear. I’m sure it’s not an easy read, since it’s a complex space!

Lastly, if you’re a player in this space and regret not being mentioned, please identify yourself in comments or via e-mail. I am sure I have missed some web studios or intermediaries that are active in recruiting talent and wooing brands.

Create Portable YouTube Subscribe Button (as widget, iframe, html)

Make your own YouTube subscribe button as an iFrame widget

On a visit to Smosh.com, I noticed the fellas had a little widget that recognized me as Nalts and had a subscribe button. So I snatched the HTML iFrame thingy, and managed to insert it as a wordpress widget. iFrames usually make my blog puke, but they’re working okay.

Here’s the code:

<p><iframe src=”http://www.youtube.com/subscribe_widget?p=nalts” style=”overflow: hidden; height: 97px; width: 300px; border: 0;” scrolling=”no” frameBorder=”0″></iframe></p>

Just copy the above, paste it into your blog, and change “Nalts” to your username. I changed the pixel hight to 120 and the width to 200.

Rinse, repeat.