Case Studies

Web-Video Ad-Price Survey, Take Three

Thu, 27 Mar 2008 13:16:43 -0800

WebVideoReport delivers another Web video advertising price survey! Readers clamor for more each time we publish a compilation of prices charged for Web video, so we've gone back into the field to get the numbers. The costs of Web video still vary as wildly as the range of Web video content itself, but we've surveyed traditional publishers such as TVGuide.com and CNN.com. We also scouted prices for Web studios and distributors including Blip.tv, Mania.tv and Revision 3. Content people such as the producers of "Goodnight Burbank," "Abigail's X-Rated Teen Diary" and the For Your Imagination guys also divulged their information. This compilation, by Daisy Whitney, documents the asking rates for different kinds of ads connected to Web video. The information provided generally reflects so-called rate-card prices, not the prices advertisers necessarily pay. In a medium whose business model is evolving as rapidly as Web video’s, information like this can be a starting point for both buyers and sellers. For a combined list of prices from our two earlier Web-Video Ad-Price Surveys, click here. WebVideoReport.com encourages its community of readers, including ad buyers and sellers, to use the comments function below to share their experiences pricing Web video (Readers: caveat emptor on any prices appearing in the comments section!). For a glossary of Web advertising terms, see this WebVideoReport exclusive. Blip.tv Blip.tv is a New York-based online television network focused on promoting and monetizing original, independently produced TV shows on the Web. Shows on blip.tv range from scripted sitcoms and dramas to newsmagazines. The lineup includes “Wallstrip,” “Mahalo Daily,” “Alive in Baghdad,” “Break a Leg” and “Who What Wear Daily.” Blip.tv shares all advertising revenues with show creators 50/50 and also syndicates shows to AOL Video, iTunes, MSN and the Sony Bravia. Ad Rates: Blip.tv sells ads in a variety of ways including run of site and sponsorship of top shows. On a CPM basis, run of site ads range from $10 to $30 and sponsorships from $30 to $100 or higher, based on the level of brand integration and the show or set of shows an advertiser has selected to sponsor. Web Video Ads Offered:

Short pre-rolls
Overlays
Post-rolls
Product placement

Integration: Blip.tv can integrate brands into top shows; offer host shout-outs to sponsors; and do custom ads by content creators to promote brands and products. Past Clients: Unilever, Dewars, Comedy Central, HBO, GoDaddy, Adobe. -3/27/08 TV Guide TV Guide Broadband at TVguide.com is part of TV Guide Network. It's an ad-driven video service with short-form content about celebrities, TV and entertainment. Most of TV Guide Broadband’s content is derived from TV Guide Network, but the Web venture also produces its own original content (such as Rhett and Link music videos and “Making News: This Just In” webisodes). Ad Rates: TV Guide Broadband sells on a CPM basis with rates ranging from $25 to $30. Web Video Ads Offered: TV Guide Broadband runs 10 to 20 second pre-rolls, lower third overlays and companion banners. The bulk of the business is in pre-rolls, but TV Guide expects lower-thirds to comprise more of the mix in the coming year. Integration: TV Guide Broadband offers integration opportunities across the site, such as ringtones from AT&T/Cingular in conjunction with ads Past Clients: ATT/Cingular Wireless and Kraft. -3/27/08 "Goodnight Burbank” “Goodnight Burbank” and sister show "Goodnight Burbank: Breaking News" are two Web comedies set in a fictional news studio. Critics have referred to “Goodnight Burbank” as "The Office meets The Daily Show." Ad Rates: Ad rates range from $3,000 to $8,000 for product placements. Web Video Ads Offered:

Overlays
Banners
Product placement/integration

Integration: Product placement/integration plays keep sponsors' messages in the content across all sites where a show is distributed, such as YouTube and MySpace. Banner ads are available on main site at www.goodnightburbank.com. Overlays differ from site to site. Past Clients: HBO. -3/27/08 “Abigail’s X-Rated Teen Diary” "Abigail's X-Rated Teen Diary" is a short, 3-times a week Web comedy about a teenage girl with a fictional genetic condition that makes her look like a grown man. Ad Rates: Ad rates range from $1,000 to $5,000 for product placement. Web Video Ads Offered:

Overlays
Banners
Product placement/integration

Integration: Product placement/integration is available across all sites where the shows are distributed such as YouTube and MySpace. Product placement is integrated into the show and lives with the content. Banner ads are available on the main site at www.abigailsxratedteendiary.com. Overlays differ from site to site. Past Clients: Time Warner Home Video. -3/27/08 CNN.com CNN.com is the online companion to the cable news network. CNN.com relaunched in July 2007 and features online video, including an in-page video player and a live player for live news. CNN.com served 109.5 million video streams in February 2008 and monthly video usage on CNN.com has increased 69% compared to a year ago. Ad Rates: CNN declined to disclose rates, but media agencies say CPMs start at $25 for the site. Web Ads Offered: Standard and rich media display ads including in-banner video; in-stream video ads on Web pages and in the various video players; and pre- and post-roll video ads Integration: CNN has sold ads across multiple platforms including CNN.com, online video, podcasting, mobile, CNN TV Network, CNN International and Headline News. Past Clients: Orbitz, Lending Tree, Chrysler, Apple, Chevrolet, Netflix, Sears, Toyota. -3/27/08 ManiaTV The ManiaTV Network launched in 2004 and produces, sells and distributes original TV programming targeting the 18-to-34 year-old audience. The company’s production studio is based in Los Angeles and the site delivers more than 8 million viewers per month. Leading shows include “Dave Navarro's Spread Entertainment,” “Tom Green Live,” “National Lampoon's Lemmings,” “Arcade” and “Backstage Pass.” Ad Rates: CPM range is $10-$30 depending on the show and integration package. Web Video Ads Offered:

Show integration
Show sponsorships
In-banner video
Companion banner ads
Pre- and post-rolls
On-set branding
Brought-to-you-by bumpers
Overlays (starting in April)

Integration: Branded show integration can include mentioning or using the client’s product, promoting a contest or Web site, and show sponsorships. Past Clients: GM, Honda, Toyota, Sprint/Nextel, Cingular, Verizon, AT&T, NBC, ABC, Paramount, Warner Brothers, Old Spice, L'Oreal, Nikon, Sony, Adidas, Nike, Coke, Pepsi, Wrigley, Citibank, XBox, Sony PSP, Nintendo, Atari, Frito-Lay, Best Buy, HBO, Virgin, Victoria Secret, WWE and many more. -3/27/08 Revision3 Revision3: Revision3 is an online TV network that produces more than 12 original Web series, mostly focusing on technology, culture and lifestyle. Ad Rates: CPMs for Web video range from $60 to $80. Web Video Ads Offered:

Brand integration
Host shout-outs
Brought-to-you-by messages

Brand integration
Dynamic in video ads including overlays
Pre- and post-rolls
Site takeovers with banners

How Book Authors Use Web Video

Mon, 24 Mar 2008 15:00:07 -0800

When Crown Publishing releases sci-fi author Scott Sigler’s novel “Infected” in April, the publisher will rely on traditional book marketing to get the word out, but Mr. Sigler plans to do his own Web-video book trailer. He’s not the only author taking to the medium. Canadian author Courtney Summers has also begun work on a book trailer that she’ll distribute on YouTube next year when St. Martin’s releases her young adult novel “Cracked Up to Be.”

Industry: Publishing

Video play: Authors and publishers create podcasts and videos for book promotion.

Strategy: Build an on line fan base that will translate to book sales.

Then there’s Charles Bock. When his novel “Beautiful Children” was released earlier this year, the work was featured on the cover of the New York Times Book Review Mr. Bock also appeared on ManiaTV’s online show “Spread Entertainment,” hosted by former Red Hot Chili Peppers and Jane’s Addiction guitarist Dave Navarro, and on the Web show TitlePage.tv. Authors are beginning to embrace Web video as a means to promote their own books, while publishers are also starting to get hip to the word-of-mouth and buzz potential that lies in online video marketing. Not only did Mr. Bock embrace the Web, so did his publisher Random House. The publisher offered the book for free, online, for two days in February. Their efforts represent a change in the notoriously slow publishing industry. As a printed medium, publishing has been slow to adapt to new media. Most publishers still lean on traditional book marketing for their titles, such as ads in the book-review sections of newspapers. But as consumers migrate to the Web, publishers are being forced to reconsider how they do business too. Harper Perennial, Putnam and Random House Canada are among some of the early pioneers in testing Web video. Harper Perennial first experimented with Web video last year for Chad Kultgen’s novel, “The Average American Male,” by posting videos on YouTube showing social situations from a guy’s perspective, in keeping with the book’s themes, said Carrie Kania, senior VP and publisher at Harper Perennial. She would not disclose sales for the book, but said the videos performed well and played a part in driving purchases. So Harper tried again with Neil Strauss’ New York Times best-selling title, “Rules of the Game,” late last year. The publishing house created a Web series in tandem with MySpace that includes how-to information for successful dating. Both books were a good fit for online video since they target young men, the heaviest consumers of Web video. Mr. Strauss also appeared on Mr. Navarro’s Web show to talk about his book. “Very high-end Pulitzer Prize winning literary novels are not necessarily the ones I would rush to do a video for, but if you have an author like Neil Strauss, then let’s try something,” Ms. Kania said. GP Putnam’s partnered with Michael Eisner’s new-media studio Tornante Co. to create a Web series for the next Robin Cook novel, “Foreign Body.” The Web series will premiere in May and serve as a prequel to the book, which releases in August. Ivan Held, president of GP Putnam’s, hopes the Web series will drive interest in the book and introduce Mr. Cook to a younger demographic online. “If this takes off of course we want to do more,” Mr. Held said. Authors also need to take matters into own hands because the upside of Web video is so tremendous and the costs are relatively low. “The biggest bang for the buck is online,” said Mr. Sigler, who will use his own money to create his book trailer. “If I have a video that blows up on MySpace, I could have 100,000 people see that in four hours. There is no other format unless you get covered by network news or Oprah. You have to get out there and hustle to get your stuff in front of people.” Book trailers are also easy to make, said Ms. Summers. “Programs like Windows Movie Maker and iMovie make the process painless and sites like YouTube--which is where I plan to upload my trailer when the time comes--make it possible for anyone to embed and distribute your video on their Web sites and Myspace/Facebook profiles, if they find it compelling enough.” Video is especially important for a young adult book because teens are so Web-savvy. Video can also take the place of an author tour. When Random House of Canada released “The Gum Thief” last year, it created nine short videos to encapsulate the book’s story and posted them on YouTube. Mr. Coupland read passages from the book and also provided the voiceover for the videos, which replaced the traditional book tour. The book was a bestseller in Canada, said Sharon Klein, deputy director of publicity at Random House of Canada. Costs for the video were minimal and the videos helped generate publicity for the book. They were covered in national papers and on Canadian TV, she said. “A lot of people look at publishing as old fashioned and staid and we say how can we be relevant?” she said. Titlepage.tv is aiming to move book talk online. The site launched in early March and uses Viddler technology so viewers can watch an hour-long episode or skip to the section that interests them, said Daniel Menaker, the show’s host and a former Random House editor. “We feel with all the potential for exchange online, and interactivity with downloading and podcasting a book, that a good interesting conversation show about books works especially because it can be chapterized,” Mr. Menaker said. -Daisy Whitney

Web-Video Ad-Price Survey, Take Two

Sun, 20 Jan 2008 22:29:07 -0800

WebVideoReport readers clamored for more the first time we published a compilation of prices charged for Web video. So in take two of that project, we've added prices for NBC Universal’s TV stations, CBS’s stations, the World Now TV-station Web site service, Hearst stations and the Revver Web-video sharing site. The costs of Web video still vary as wildly as the range of Web video content itself. This compilation, by contributing writer Daisy Whitney, documents the asking rates for different kinds of ads connected to Web video. The information provided generally reflects so-called rate-card prices, not the prices advertisers necessarily pay. But in a medium whose business model is evolving as rapidly as Web video’s, information like this can be a starting point for both buyers and sellers. For a combined list of prices from our December story and this update, click here. WebVideoReport.com encourages its community of readers, including ad buyers and sellers, to use the comments function below to share their experiences pricing Web video (Readers: caveat emptor on any prices appearing in the comments section!). For a glossary of Web advertising terms, see this WebVideoReport exclusive. CBS Local (TV Stations) CBS Local is a network of sites for the owned & operated CBS television stations that features 23 local Web sites reaching more than 10 million unique users per month. The CBS Local network offers live video of breaking news and other special events. The network also delivers more than 8 million monthly video views from more than 350,000 on-demand video clips. Ad rates: The CPM for video on CBS Local sites starts at $50. The company declined to quote the upper end of the price range. Web video ads offered:

15-second pre-roll
Video sponsor units
Companion banner ads with message unit and video sponsor unit (different size ads on site)
In-banner video unit (video inside a banner ad)
Sponsored video sections

15 second pre-rolls
The company plans to add companion ads in the near future

Integration: Clients can buy Web video ads as part of a package with on-air spots on a local station. Past clients: Canon, Pontiac, Maryland Toyota, ACE Hardware, McDonald’s, US Army. -1/20/08 NBC Universal TV Stations The NBC Universal Television Stations division includes 10 NBC-owned TV stations in major U.S. markets, such as WNBC in New York and KNTV in San Francisco. NBC sells advertising on the Web sites for those stations. Ad rates: CPMs range from $40 to $75, depending on the market. Web Video ads offered:

Pre-roll
Overlays
Banner ads
Classified listings in some cases

Integration: The company sells integrated ad packages online and on-air in local markets, against national cable and TV, and with new digital out-of-home venues, such as gyms and taxi cabs. Past Clients: American Express, General motors, Sprint, Kohler, Bacardi, Toyota/Lexus, various Broadway Shows in New York. -1/20/08 WorldNow TV WorldNow is a service provider for local TV stations’ Web sites. The company powers Web sites for ABC, Cox, Dispatch, Gray, Journal, Landmark, LIN, Local TV, LLC, Media General, News Press & Gazette, Raycom, Time Warner Cable, Tribune and Young. WorldNow serves 33 million video streams per month. Ad rates: CPMs are $30 or more. Integrated buys: WorldNow is solely focused online and offers Web-only ads, though clients can sell across TV and online. Past Clients: Advertisers on sites in the WorldNow network have included Cadillac, Glass City Federal Credit Union and numerous local advertisers. Revver Revver is an online video-sharing network focusing on independently-produced media. Revver shares advertising revenue with video creators and syndicators. Ad rates: Rates range from $10 CPM to $20 CPM, depending on ad placement. Pricing is also available on a CPC (cost per click) basis. Web video ads offered: Pre-roll, post-roll, pre-play display, post-play display. Integration: Revver offers a range of ad programs over its video network as well as on its own Web site. In-player ad units and flash overlays are offered over its network and standard ad units are offered on the site. Exclusive sponsorships, skins and takeovers are available. Past clients: ABC, Absolut, American Apparel, Coca Cola, Columbia Pictures, Disney, Electronic Arts, Microsoft, MTV Networks, NBC Universal, Nintendo, Paramount Pictures, Procter & Gamble, Sega, SC Johnson, Sony Pictures, Taco Bell, Universal Pictures, Verizon, Warner Brothers Pictures. -1/20/08

Scripps Networks Builds Video Library

Tue, 15 Jan 2008 20:14:48 -0800

Situation: Scripps Networks interactive division, rich in how-to video, pulls in more sales than the company's DIY and Fine Living cable channels. Scripps launched its first network Web site in May 1996 with HGTV.com and since then has built up content steadily, creating an online business that has been profitable since 2003. The interactive division ranks third for the company in sales, behind the networks HGTV and Food Network. The portfolio of sites–HGTV.com, FoodNetwork.com, DIYnetwork.com, Recipezaar.com, FineLiving.com, GACTV.com and HGTVPro.com–generate about 14 to 15 million unique visitors per month and about 10 million video views per month, averaged across July through October 2007. That’s up from 7.5 million video views per month for the same period a year ago. About 5,000 videos reside across those sites. The media company counts 15 staffers completely dedicated to Web video, with other Web site staffers who work on video in some capacity. Scripps also works with its production partners to create online video as an accompaniment to many of its popular on-air shows.

Company: Scripps Networks

Industry: Media Company

Video play: Original content on lifestyle and home improvement

Strategy: Scripps creates orginal video and takes clips from shows to distribute on its sites and across the Web.

Result: How-to videos, such as Scott Sicari's how-to on installing a kitchen backsplash help attract users to the company's sites. The backsplash video has pulled in more than 1 million views.

The Web division reports to Deanna Brown, president of Scripps Networks Interactive. Most of the Web video staffers worked on text Web content previously; now they have added video to their responsibilities. Scripps runs the videos on its sites and syndicates to Yahoo, Comcast.net and MSN. The most popular videos on the sites are of the how-to variety, said Jeff Meyer, senior VP interactive sales at Scripps. “How-to videos tend to play very well. What has been least watched are when we have gotten fancy and asked users to interact with choosing videos,” he said. Mr. Meyer said he measures profitability of Web video as part of the overall business of the Web sites. Video is driving overall views and traffic to the sites as well as interest from advertisers. “I don’t go out and sell just video. Whenever I sell something it’s in conjunction with everything else,” he said. Advertisers will often spend more to have video included in a buy, he said. Scripps doesn't disclose prices for advertising linked to its video. The key to cost efficiency is finding opportunities to piggyback on to existing on-air content and shoot extra material for the Web. “Users expect video on the site because of the association with the TV brands and it’s part of the brand promise,” Mr. Meyer added. Web video content costs range from zero (when the network uses bonus material from TV shows) to $12,000 and greater per video. Most original videos are less than $5,000 to $6,000 each. Problem: In 2006, The Web team noticed that “kitchen backsplash” was one of the most popular search terms on HGTV.com, said Peter Clem, VP of video production, programming and operations. (Backsplashes are wall treatments placed behind countertops to contain messes and add a decorative touch.) That presented an opportunity to create content to satisfy consumers’ interest in the subject matter. Solution: Scripps reached out to Philadelphia-based production company, Banyan, known for its work producing TLC show “Trading Spaces,” to create an original Web series on kitchen backsplashes. The host of the Web series was Scott Sicari, who had appeared on “Trading Spaces.” The series was shot in one location, a loft in Philadelphia. The entire series of eight episodes was shot in a week. A designer created eight backsplashes, and the crew put each up, filmed, and ripped it out to install the next one. Each of the eight videos cost about $7,000 to produce, including the cost of material, labor, production company fees, development, script, talent and crew. Scripps posted all eight episodes on HGTV.com in October 2006. The videos also ran on Comcast.net and MSN.com and are accessible on DIYnetwork.com and Fineliving.com. Scripps marketed the series on the home pages of HGTV.com and HGTVkitchendesign.com and promoted the series in its e-mail newsletter to HGTV.com subscribers. Scripps also provided step-by-step instructions on the site to help people make their own backsplashes. “Most people viewed the videos before going to the instructions, ” Mr. Clem said. Evaluation: By October 2007, the backsplash videos had generated 1 million views. Mr. Clem and his team are developing more ideas for original Web series and are currently producing a show on powder rooms for HGTV.com. --Daisy Whitney

Case Study: Betting on Web Video in Bakersfield

Sun, 06 Jan 2008 21:32:48 -0800

Situation: Bakersfield.com is the online presence of the Bakersfield Californian, the oldest daily newspaper in Kern County, California, which traces its beginnings back to the Gold Rush era. The site began posting video news stories in 2005 and made video a core component when the site was redesigned in October 2006. New videos, posted several times daily, are normally featured “above the fold,” where viewers see them at first glance, and they take the place of a traditional still shot on a newspaper’s front page. “I decided if we’re going to do it, why not play it front and center?” said Logan Molen, vice president of interactive media for the Californian. Drawing on existing personnel resources, the video startup expense was minimal: an estimated $20,000 for handheld cameras, tripods and microphones. The newspaper also just purchased an HD camera (a Canon XH G1/ XH A1), but it started with Sony Cybershots, then migrated to Sony Exilims, both pocket-sized cameras that shoot photos and video and run about $300.

Company: The Bakersfield Californian

Industry: Publishing

Video play: Add video to augment print content on Web.

Strategy: Use in-house talent to create video.

Result: Staff creates 10-12 videos a week. Working on advertising sales connected to video. Shopping for new video player technology.

Photographers and some staffers working on more complex video projects use two higher-end video cameras, Canon XL2s, and have use of a zoom lens (Canon XL3.4-10.2mm). The newspaper brought in renowned photojournalist Dirk Halstead, UPI’s photo bureau chief in Saigon during the Vietnam War, to train photographers and other staffers involved with videography, at a cost of several thousand dollars. The newsroom has a staff of about 80 people, and in the last 12 months, 60 of them have done multimedia versions of their stories, many of which involve video. Several staffers are graduates of UC Berkeley’s multimedia department, while others have undergone video training. “We do a lot of internal training, and work with staffers on a one-on-one basis,” Mr. Molen said. “There is a lot of grassroots training and peer-to-peer discussion and self-critique. Periodically we have professional trainers come in.” A team of five staff members devote most of their time to the Web, reporting to Web newsroom editor Davin McHenry. The division of labor falls out like this: Assistant Web Editor/Day Wire Editor: Manages site updates throughout the day, as well as in-print promotions of Web content, and does a blog on cool stuff online. AM Update/Blogger: Writes news updates and breaking news for the Web, as well as two blogs, one of which, Talk of the Town, is focused on the hot news topic of the day. Multimedia Editor: Edits video, audio and Flash files, using Final Cut Pro, as well as doing some videography. Daytime Copy Editor: Helps to edit and post content, first for the Web and then for print. Reporters and photographers report to their individual editors on the print side. “Reporters do a Web video version of their story, a sidebar or a standalone piece,” said Mr. Molen. “Our still photographers do longer-form video as well. Columnists and editorial writers also participate.” Mr. Molen’s team offers publishing and technical support. One person produces a variety of content for the Web, including a periodic video and any video house ads that are put online. The site’s video serving costs are contained within a larger hosting deal with McClatchy Interactive, which provides its content management system to handle multimedia files. Videos are archived by burning them on discs that are stored in the newsroom, but Mr. Molen is looking for a server solution, and has discussed it with McClatchy. Bakersfield.com gets about 4 million page views a month, and Mr. Molen said videos have increased traffic by about 5%. No revenue or profit is currently generated from Web video because it is not yet sold separately as an ad product. There is a dedicated online salesperson who sells Web-only advertising, including video ads, and works with the newspaper’s print sales reps to help them sell Web advertising. They all have monthly sales goals that include separate metrics for online-only revenue. The 10 to 12 videos created during an average week are a mix of breaking news, hard news and feature stories, with hard-news stories getting the most hits. A recent clip that generated heavy traffic showed graphic security-camera footage of a hit-and-run accident in which a child was struck and injured in a crosswalk. The video was the only evidence showing the vehicle involved, and the perpetrator was caught within a day or two. Other videos that created high viewer interest were edited courtroom clips posted twice daily from the trial last year of a vice principal accused of killing his family of five. The least-viewed videos have been feature stories or pieces that the staff has done for fun. “We’re in the business of being the leading source of local news in Bakersfield and Kern County, and the Internet is one more medium we can use to serve the audience, with video being an important component,” said Mr. Molen. He said two tracking services and the paper’s own marketing research show the site gets more traffic than each of the three broadcast affiliate Web sites in the market. Problem: Bakersfield.com has been trying to build a larger audience before attempting to sell outside advertising around its Web video. Recently there have been pre-roll house ads for the Californian’s newspaper and other media properties, including the glossy monthly city magazine Bakersfield Life and Mas, geared toward the Hispanic audience. These ads are repurposed 30-second television spots. Video ads not related to the Californian’s own video efforts have been sold on other areas of the site, at an average cost to advertisers of about $2,200-$2,800 per month. There is no method currently to target ads or to brand the video player with advertising. “Our player, a home-grown flash player, is very rudimentary, and also we’re in a smaller market, so the market awareness is not as great with national advertisers,” Mr. Molen said. Solution: The site needs a video player that can easily serve targeted advertising within recognized ad standards, making it much easier for it to get into a national network and reap advertising dollars. “There are a number of vendors that deliver good players, and we’re trying to figure out what makes sense and what is within our budget,” said Mr. Molen, who plans to implement a new player within the next few months. He said it will deliver a bigger, better experience in terms of content and advertising. He also plans to focus on “the next level of storytelling” and institute what he called a news “vodcast,” a video broadcast containing multiple stories, which should be attractive to advertisers--and ratchet up the competition with TV network affiliates’ Web sites in the market. Evaluation: So, what have been the lessons from Bakersfield.com’s brief but focused history of Web video? “I’ve learned our journalists are excited about becoming more than print journalists and have really embraced the concept of being multimedia. We’ve seen that a traditional newspaper company can compete in the local video market,” said Mr. Molen. “Our readers like it, they value it. I’ve learned there’s a huge opportunity waiting for us down the road.” By Hillary Atkin

Master Price Survey: What Do Web-Video Ads Cost?

Thu, 13 Dec 2007 15:30:27 -0800

Prices for advertising connected to Web video range as wildly as the content itself. This compilation, by contributing writer Daisy Whitney, documents the asking rates for different kinds of ads connected to Web video. The information provided generally reflects so-called rate-card prices, not the prices advertisers necessarily pay. But in a medium whose business model is evolving as rapidly as Web video’s, information like this can be a starting point for both buyers and sellers. WebVideoReport.com encourages its community of readers, including ad buyers and sellers, to use the comments function below to share their experiences pricing Web video (Readers: caveat emptor on any prices appearing in the comments section!). For a glossary of Web advertising terms, see this WebVideoReport exclusive. MEDIA COMPANIES Advertising Age (Crain Communications) This Crain publication, a sister to WebVideoReport.com and TelevisionWeek, is the leading news source covering the advertising industry. Ad rates: Flat rate for pre-roll only, custom pricing for integrated programs. For instance, a video ad in the Garfield’s Ad Review feature costs $15,200 for four weeks and $124,800 for 48 weeks. Web video ads offered:

Pre-roll
Video in banner

Integration: AdAge also sells Web-video ads packaged with standard online, print, mobile, RSS feeds, and events Past clients: A&E, VideoEgg, Meredith -12/13/07 CBS Local (TV Stations) CBS Local is a network of sites for the owned & operated CBS television stations that features 23 local Web sites reaching more than 10 million unique users per month. The CBS Local network offers live video of breaking news and other special events. The network also delivers more than 8 million monthly video views from more than 350,000 on-demand video clips. Ad rates: The CPM for video on CBS Local sites starts at $50. The company declined to quote the upper end of the price range. Web video ads offered:

15-second pre-roll
Video sponsor units
Companion banner ads with message unit and video sponsor unit (different size ads on site)
In-banner video unit (video inside a banner ad)
Sponsored video sections

Integration: CBS Local offers packages for all distribution platforms, including broadcast television and digital media properties. CBS Local also syndicates its video content to local and national partners. Sponsorship packages are available for major events, including Grammy’s, NCAA Bracket Challenge and Elections 2008. Packages include special content integration opportunities in addition to media. Past clients: Recent video advertisers include GM, Ford, Chrysler, Toyota, Honda, Kia, Nissan, Volvo, Jeep, BMW, Carmax, Procter & Gamble, Energizer, Wendy’s, Taco Bell, Sylvan Learning Center, Harrah’s, Ireland Tourism, Ski New Hampshire, Hong Kong Tourism, Tourism Australia, Maui Tourism, Miami Tourism, PNC Bank, Time Warner, Comcast, Echostar, T-Mobile, Quest, US Cellular, Blue Cross Blue Shield, American Heart Association, Glaxo SmithKline and Novartis. -1/20/08 CNN.com CNN.com is the online companion to the cable news network. CNN.com relaunched in July 2007 and features online video, including an in-page video player and a live player for live news. CNN.com served 109.5 million video streams in February 2008 and monthly video usage on CNN.com has increased 69% compared to a year ago. Ad Rates: CNN declined to disclose rates, but media agencies say CPMs start at $25 for the site. Web Ads Offered: Standard and rich media display ads including in-banner video; in-stream video ads on Web pages and in the various video players; and pre- and post-roll video ads Integration: CNN has sold ads across multiple platforms including CNN.com, online video, podcasting, mobile, CNN TV Network, CNN International and Headline News. Past Clients: Orbitz, Lending Tree, Chrysler, Apple, Chevrolet, Netflix, Sears, Toyota. -3/27/08 CondeNet (Conde Nast) The Conde Nast magazine empire’s online incarnation includes properties such as Epicurious.com, Concierge.com, Style.com, Men.Style.com, and Flip.com. Ad Prices: Flat Fee Sponsorships or CPM. CondeNet declined to share details on pricing. Web video ads offered:

Pre-roll ads
Companion Ads (300x250)

Integration: CondéNet has established relationships with major portals including MSNBC, Yahoo!, YouTube and other video sites to distribute its content and accompanying ads. Past clients: American Express, Visa, Bertolli, Hilton, Nestle, Haagen Dazs, Charles Schwab -12/13/07 For Your Imagination For Your Imagination is a New York-based Internet video production company that is currently producing six Web series and plans to expand to about 20 later this year. The company develops original Internet TV shows and also partners with existing producers to fine-tune, distribute, promote and monetize their shows. Ad Rates: CPM ad rates range from $20 to $60. Web Video Ads Offered:

Brand integration

Dynamic in video ads including overlays

Pre- and post-rolls

Site takeovers with banners

Integration: FYI has focused on brand integration and sponsorships, including recent deals with Graco, BabyBjorn , Chipotle, Boon and New Belgium Beer. Past Clients: Graco, BabyBjorn, TJMaxx. -3/27/08 Hearst-Argyle Television Hearst owns 26 TV stations in the U.S. and sells ads across the station Web sites, such as KCRA-TV in Sacramento and WBAL-TV in Baltimore. Ad Rates: Pricing depends on a number of factors including targeting, size and duration of campaign and the specific sponsorship that was purchased, with CPMS ranging from $15 to $100. Web ads offered:

15 second pre-rolls
The company plans to add companion ads in the near future

Integration: Clients can buy Web video ads as part of a package with on-air spots on a local station. Past clients: Canon, Pontiac, Maryland Toyota, ACE Hardware, McDonald’s, US Army. -1/20/08 ManiaTV The ManiaTV Network launched in 2004 and produces, sells and distributes original TV programming targeting the 18-to-34 year-old audience. The company’s production studio is based in Los Angeles and the site delivers more than 8 million viewers per month. Leading shows include “Dave Navarro's Spread Entertainment,” “Tom Green Live,” “National Lampoon's Lemmings,” “Arcade” and “Backstage Pass.” Ad Rates: CPM range is $10-$30 depending on the show and integration package. Web Video Ads Offered:

Show integration

Show sponsorships

In-banner video

Companion banner ads

Pre- and post-rolls

On-set branding

Brought-to-you-by bumpers

Overlays (starting in April)

Integration: Branded show integration can include mentioning or using the client’s product, promoting a contest or Web site, and show sponsorships. Past Clients: GM, Honda, Toyota, Sprint/Nextel, Cingular, Verizon, AT&T, NBC, ABC, Paramount, Warner Brothers, Old Spice, L'Oreal, Nikon, Sony, Adidas, Nike, Coke, Pepsi, Wrigley, Citibank, XBox, Sony PSP, Nintendo, Atari, Frito-Lay, Best Buy, HBO, Virgin, Victoria Secret, WWE and many more. -3/27/08 NBC Universal TV Stations The NBC Universal Television Stations division includes 10 NBC-owned TV stations in major U.S. markets, such as WNBC in New York and KNTV in San Francisco. NBC sells advertising on the Web sites for those stations. Ad rates: CPMs range from $40 to $75, depending on the market. Web Video ads offered:

Pre-roll
Overlays
Banner ads
Classified listings in some cases

Brand integration

Host shout-outs

Brought-to-you-by messages

Integration: Revision3 has focused on brand integration and sponsorships. Hosts will say that certain segments of a show are “brought to you by,” while many Revision3 shows have also included product integration. Past Clients: Virgin Atlantic, Adagio Teas, Body by Venus, Carson’s Ribs, Beck’s Beer Southern Comfort, Sony, Microsoft, FX Networks, Adobe. -3/27/08 TV Guide TV Guide Broadband at TVguide.com is part of TV Guide Network. It's an ad-driven video service with short-form content about celebrities, TV and entertainment. Most of TV Guide Broadband’s content is derived from TV Guide Network, but the Web venture also produces its own original content (such as Rhett and Link music videos and “Making News: This Just In” webisodes). Ad Rates: TV Guide Broadband sells on a CPM basis with rates ranging from $25 to $30. Web Video Ads Offered: TV Guide Broadband runs 10 to 20 second pre-rolls, lower third overlays and companion banners. The bulk of the business is in pre-rolls, but TV Guide expects lower-thirds to comprise more of the mix in the coming year. Integration: TV Guide Broadband offers integration opportunities across the site, such as ringtones from AT&T/Cingular in conjunction with ads Past Clients: ATT/Cingular Wireless and Kraft. -3/27/08 Wall Street Journal (News Corp.’s Dow Jones) The Wall Street Journal, the flagship newspaper for News Corp.’s Dow Jones company, is building out its video advertising content as an adjunct to the subscription revenue and static Web ads it sells on WSJ.com. Ad rates: The CPM for video on WSJ.com is $90. For more information, see the video sales sheet. Web video ads offered:

A 15-second pre-roll
A coordinating 300x250 ad unit that is visible above the content space during the pre-roll video
An expandable reminder unit that remains to the right of the video “You Are Watching" headline. When a user clicks “Expand", the 300x250 unit displayed during the initial video pre-roll ad will reappear, enabling further user interaction.

Integration: The Wall Street Journal sells video advertising packages that run across the Wall Street Journal Digital Network, which includes WSJ.com, Barrons.com, MarketWatch.com and AllThingsD.com. Past clients: Recent video advertisers include Skyy Vodka, Cisco, IBM, HP, Jaguar, Knight Capital Group and Mercer Consulting. -12/13/07 WorldNow TV WorldNow is a service provider for local TV stations’ Web sites. The company powers Web sites for ABC, Cox, Dispatch, Gray, Journal, Landmark, LIN, Local TV, LLC, Media General, News Press & Gazette, Raycom, Time Warner Cable, Tribune and Young. WorldNow serves 33 million video streams per month. Ad rates: CPMs are $30 or more. Integrated buys: WorldNow is solely focused online and offers Web-only ads, though clients can sell across TV and online. Past Clients: Advertisers on sites in the WorldNow network have included Cadillac, Glass City Federal Credit Union and numerous local advertisers. WEB VIDEO SITES Blip.tv Blip.tv is a New York-based online television network focused on promoting and monetizing original, independently produced TV shows on the Web. Shows on blip.tv range from scripted sitcoms and dramas to newsmagazines. The lineup includes “Wallstrip,” “Mahalo Daily,” “Alive in Baghdad,” “Break a Leg” and “Who What Wear Daily.” Blip.tv shares all advertising revenues with show creators 50/50 and also syndicates shows to AOL Video, iTunes, MSN and the Sony Bravia. Ad Rates: Blip.tv sells ads in a variety of ways including run of site and sponsorship of top shows. On a CPM basis, run of site ads range from $10 to $30 and sponsorships from $30 to $100 or higher, based on the level of brand integration and the show or set of shows an advertiser has selected to sponsor. Web Video Ads Offered:

Short pre-rolls

Overlays

Post-rolls

Product placement

Flash overlays
Pre-roll
In video bugs
Accompanying companion units

Integration: Break lets clients advertise within original content and user-generated content. Break also can integrate brands into its rich media ads. In addition, Break will develop customized sponsorships such as home page programs, content integration, and product placement. Past clients: Anheuser Busch, Axe, Burger King, Diageo, EA, Honda, Jim Beam, Keystone, MTV Networks, NBC Universal, Nike, Paramount Pictures, Universal Pictures, Sony Pictures, Verizon, Viacom, Vivendi Games, Warner Brothers Home Video -12/13/07 MetaCafe Metacafe is one of the first generation of video-sharing sites. The site offers short-form, original video content that gives users entertainment breaks. The sites users identify the most popular videos and the site’s producers’ rewards program pays video creators for their best work, as determined by the viewers. Ad rates: Rates range from $10 CPM to $35 CPM, depending on placement. The rate card for pre-roll, and home-page sponsored video units is $35. The rate card for overlay ads is $20, and a static companion ad runs from $10 to $20. Web video ads offered:

Home page player
Search results page player
Pre-roll
Overlay
Companion ads next to pre-rolls and overlays (300x250 to right of player and 468x60 below player)

Integration: Metacafe said it offers a range of ad programs, such as basic in-stream options of flash overlays, and pre-roll and post-roll ads. The site also offers accompanying companion units as well as customized home-page programs, mash-up tools, custom content integration, as well as various types of product placement. Past clients: Adidas, American Apparel, Axe, American Online, Activision, Barilla, Carlsberg, CanalSat, Canon, Coca Cola, Colgate Palmolive, Dove, Ford, Gillette, Goodyear, Heineken, Heinz, Kodak, Lancome, Lego, LG, Match.com, Merck, Mentos, Microsoft, Miller, MTV, National Geographic, Nike, Nokia, Orange, Orbit, Palmolive, Peugeot, Pepsi, PS2, Playstation 3, Real Networks, Renault, Rockstar, Samsung, Sega, Skype, Snickers, Sony Ericsson, TCM, 20th Century Fox, Ubisoft, Universal Pictures, Virgin, Visa, Vodaphone, Xerox. -12/13/07 No Good TV No Good TV (www.ngtv.com). No Good TV is part of the profusion of ventures creating short content and syndicating it across the Web. The site recently caught the attention of the traditional TV community, and syndicated evening show “Extra" will be integrating No Good TV segments into its Monday-Friday program. Ad rates: CPMs range from $15 to $40 and vary based on length of term, extent of exclusivity and customization. All sponsorship agreements are customized for each individual client. Web video ads offered:

Banner ads
Overlays
Skyscrapers
Alpha video
Transitional pages and full channel sponsorship
Pre-roll and post-roll (15 seconds or less)
No Good TV can also create “parody" pre-roll, post roll and full promotional spots using real products/brands in a humorous scripted vignette.
Sponsorship agreements can range from traditional banner ads to integrated original live-action or animated short-form series programming.

Integration: No Good TV said it offers customized and strategic product and brand integration into the program content. Advertisers integrated into No Good TV’s show also gain additional exposure on YouTube, which carries a No Good TV channel, which is currently the fourth most-viewed YouTube partner of all time. Additional brand exposure includes event presence and party sponsorships. Past clients: Microsoft’s Halo 3, Universal Studios, Sony and Avid -12/13/07 Revver Revver is an online video-sharing network focusing on independently-produced media. Revver shares advertising revenue with video creators and syndicators. Ad rates: Rates range from $10 CPM to $20 CPM, depending on ad placement. Pricing is also available on a CPC (cost per click) basis. Web video ads offered: Pre-roll, post-roll, pre-play display, post-play display. Integration: Revver offers a range of ad programs over its video network as well as on its own Web site. In-player ad units and flash overlays are offered over its network and standard ad units are offered on the site. Exclusive sponsorships, skins and takeovers are available. Past clients: ABC, Absolut, American Apparel, Coca Cola, Columbia Pictures, Disney, Electronic Arts, Microsoft, MTV Networks, NBC Universal, Nintendo, Paramount Pictures, Procter & Gamble, Sega, SC Johnson, Sony Pictures, Taco Bell, Universal Pictures, Verizon, Warner Brothers Pictures. -1/20/08 YouTube YouTube, the biggest video sharing site, hosts user-generated and professionally produced content. The site, a Google subsidiary, is experimenting with ways to wring revenue from its content, offering a variety of Web-video ad formats. Ad rates: According to parent company Google’s Web site, advertising on YouTube requires a $50,000 spend within 90 days. On brand channels, advertisers must spend $250,000 across Google and YouTube, including $100,000 or more on YouTube only. A YouTube home page roadblock is a $100,000 per day flat fee plus a $100,000 incremental spend on Google and YouTube within 90 days. The company said on its site: “Currently you can apply to advertise directly with YouTube if you’re willing to spend a minimum of $50K and you’re interested in running a large branded campaign. This advertising option requires an authorized contract or purchase order with YouTube, and ads are served on a reservation-purchase basis, rather than the AdWords auction model." For more information, click here for their guide. Companies wanting to advertise on YouTube for less can sign up for Google AdWords for as little as a $1 CPM. Web video ads offered:

Home page video ads
In-video ads (overlays)
Video ads
Traditional display ads
No pre-roll ads

Integration: Through Google’s content distribution via AdSense, YouTube video units are syndicated to Web sites across the Google Content Network. There have also been integrations, for example, between Google Gadget ads and contests on YouTube. Past clients: Adobe, Verizon Wireless, Samsung, BMW, MGM -12/13/07 SOCIAL NETWORKING SITES MySpace MySpace, a News Corp. business, is the biggest social networking site. The Web site users set up pages into which they can plant music and video, and MySpace offers entertainment channels with exclusive, original music programs, as well as video shows. Ad rates: A pre-roll video in the music section of MySpace.com (15-second video with a 300x250 pixel ad unit) carries a $25 CPM. Web video ads offered:

Pre-roll
Mid-roll
5-second pre-roll bumpers
Banners and display ads also live on pages with video

Integration: MySpace ads are sold solely on MySpace. Past clients: Ford, Toyota, Hairspray the Movie -12/13/07 WEB-VIDEO SERIES “Abigail’s X-Rated Teen Diary” "Abigail's X-Rated Teen Diary" is a short, 3-times a week Web comedy about a teenage girl with a fictional genetic condition that makes her look like a grown man. Ad Rates: Ad rates range from $1,000 to $5,000 for product placement. Web Video Ads Offered:

Overlays

Banners

Product placement/integration

Overlays

Banners

Product placement/integration

Who Earns How Much With Web Video?

Tue, 04 Dec 2007 20:58:54 -0800

Some Web video stars, like the "Ask a Ninja" guys, are raking it in. Some, like Beet.TV video blogger Andy Plesser, are earning a hefty supplement to their day jobs. And some, like technology commentator-entertainer iJustine, are earning pocket change. Like the old Hollywood dream of being discovered, video success stories are rare. While some Web video sensations, such as Rocketboom alumna Amanda Congdon, get an agent and try to make it in television, others are content to make a go of it on the Internet. Payday Near the top of the pile sit Kent Nichols and Douglas Sarine, who have parlayed their "Ask a Ninja" Web program into about $100,000 a month in ad revenue and income from merchandising and licensing. Mr. Plesser said he is pulling in about $15,000 a month with his Beet.TV blog, which includes video interviews with top technology executives. And iJustine, whose video sendup of her gargantuan iPhone bill drew about 8 million views, by comparison pulls in about $1,000 a month, she said.

Entrepreneurs:"Ask a Ninja," iJustine, Beet.TV

Industry: Video blogging, production

Video play: Finding a way to make a living with Web video.

Strategy: Advertising, licensing, merchandising

Result: Runs the gamut from "Quit your day job," to pocketchange money.

The winners are testing a variety of Web-video business models, and they’re learning that they need to lure one hell of a lot of eyeballs before they quit their day jobs. Creators usually need at least 50,000 to 100,000 views per month before advertisers will take them seriously, said Dina Kaplan, chief operating officer and co-founder at video-sharing site Blip.tv. Blip.tv hosts a number of Web series such as "Rocketboom" and "Ze Frank," which attract those kind of audiences, she said. "There is a very good chance that people creating shows that reach 500,000 viewers a month or more will be able to go full-time," Ms. Kaplan said. "I don’t know if you should quit your job, but if you reach 500,000 people a month or more, you will have opportunities to monetize it." If a show has an audience of only 20,000 people per month, the creator should spend his or her time building an audience rather than finding a sponsor, she advised. Ad Pricing Ad pricing varies widely for popular Web shows, but can range from $15 to $20, said Angela Gyetvan, VP of marketing and content at Revver. That means a show generating 50,000 views at a $15 CPM (cost per thousand views) would make about $750. Blip,tv also hosts Mr. Plesser’s Beet.TV. He has scored interviews with media and Internet TV heavies such as Brightcove CEO Jeremy Allaire and YouTube co-founder Steve Chen. Regular viewers include employees at Google, Microsoft, AOL, Yahoo and other high-profile tech companies. Because of the audience, and because Mr. Plesser has broken stories about Microsoft, YouTube, Adobe and other leading companies, he has attracted advertisers who want to reach those influential decision-makers. The show’s archive of 400 clips are accessed about 100,000 times a month, Ms. Kaplan said. Advertisers on the site have included Verisign, Brightcove and Adobe. The deals are priced as sponsorships rather than by the cost-per-thousand-views model. Beet.TV The $15,000 a month Mr. Plesser pulls in from Beet.TV isn’t enough to get him to quit his day job, nor does he want to. He runs the PR agency Plesser Holland and plans to expand its business into video production. Traffic to Beet.TV has been converted into dollars because of its audience’s profile. Normally, 100,000 views a month aren’t enough to make tendering a resignation letter a good idea, Ms. Kaplan said. Mr. Nichols and Mr. Sarine, the "Ask a Ninja" duo, learned all about the threshold between Web video as an avocation and a vocation. They started their "weekly-ish" Web show two years ago with about $60,000 from friends and family. Since then, they’ve generated 70 million views on YouTube, AskaNinja.com and other sites. They managed to live on that income, supplementing it with occasional odd jobs. About a year ago, they decided to focus on wringing money from their Web popularity. "You can’t take views to the bank. You need a concrete plan to turn those views into money," Mr. Nichols said. So they paired up with video-sharing site Revver, which splits ad revenue 50-50 with content creators, and earned between $40,000 and $50,000 in an eight-month period. The pair then signed a deal with Federated Media, which now sells ads for the show. In the last year, the number of "Ask a Ninja" views has jumped from 2 million to 2.7 million per month. "That pays the bills," Mr. Nichols said. "Advertisers now have a credible way to reach the target demo of young men who have abandoned TV, and we are providing a concrete way to get into those kids’ brains." Companies including SanDisk, Palm, Doritos and Toshiba have signed on as sponsors. Fame Not Same as Cash Internet celebrity iJustine, whose real name is Justine Ezarik, gained notoriety on the Web this summer, when a video about her 300-page iPhone bill rocketed to 8 million views across YouTube, MySpace, Yahoo and Revver. Ms. Ezarik didn’t maximize her earning potential with that video because only 300,000 views came via Revver, where she gets paid for her work. She pocketed a mere $2,000 from her biggest Web hit, she said. "It would have been great if I could have monetized all those views," Ms. Ezarik said. "I could have had pre-rolls on Revver and maybe made $15,000." Her video blog, TastyBlog Snack.com, averages between 30,000 and 100,000 viewers per video. Ms. Ezarik publishes two to three segments per week, generating less than $1,000 a month. She also works as a freelance graphic artist and a consultant on viral marketing. Some of the biggest Web video stars eschew the route to Hollywood, instead using the medium to promote their existing businesses. WineLibrary.TV Gary Vaynerchuk, host of WineLibrary.tv, draws 40,000 viewers each day to his unscripted, off-the-cuff show about wine. His online identity, as America’s un-snooty wine guy, has caught on by making knowledge about wine accessible to average Joes and Janes. Mr. Vaynerchuk is still a long way from his singular dream in life—to own the New York Jets—but he has reached a milestone online: His Web show generates enough views for him to make a living from it, if he wanted to. Mr. Vaynerchuk said the prospect of owning the NFL team someday is his motivation to keep building his brand. He draws 40,000 viewers each day to his 20-minute unscripted, off-the-cuff show about wine by making wine-tasting accessible. He has been featured on "Late Night With Conan O’Brien," "Ellen" and National Public Radio and has been approached by Fortune 500 companies interested in sponsoring the show. However, he has declined all offers because he likes the creative freedom he enjoys on the Internet in a sponsor-free show. Solid Backing Also, he doesn’t need the money he could generate from Web ads. He turned his father’s New Jersey liquor store into a $50 million-a-year business, selling wine in brick-and-mortar stores and online before he started the show. WineLibrary.tv is basically a marketing play for his core business. "I am not a starving actor waiting tables. I am trying to change the wine industry in America single-handedly," Mr. Vaynerchuk said. "That is an ambitious goal that I am only slightly on the way to creating." So for now, he’s is passing up offers of ad deals that he said could have pulled in revenue around the mid-six-figure range. It’s part of his goal of creating a liquor distribution business that will let him fulfill his true life’s ambition. To get there, he’s positioning himself as a Rachael Ray of wine. "I am going for it all. I want to buy the New York Jets," he said. "That is my dream. That is by far my No. 1 dream." How to Make It as a Video Blogger A successful video blog needs to have three things. First: The first is a topic that is sustainable, said Michael Hayes, senior VP of interactive at Initiative North America. "You can write on cats, but kitty cats aren’t too sustainable. But politics, at least this year, is sustainable, or entertainment news." Second: A video blog needs a revenue model—advertising, in most cases. Third: But to attract ads, a blogger must have the third element—an audience. "You need to have enough traffic to generate eyeballs and interest," he said. Mr. Hayes advises prospective bloggers to link up with a network of blogs, like the Huffington Post, or to start developing a reputation as a blogger by posting entries to sites such as About.com, which pay for expert commentary on various topics. Blip.tv co-founder Dina Kaplan said she urges the video creators on her site to build their brands in like-minded communities online. "If you have a cooking show, go onto several Yahoo sites about cooking. Comment on other cooking blogs and really immerse yourself into the online community focused on cooking. Reach out to the thought leaders and get advice from them, and that will drive thought leaders to your show. Create a social network among your viewers on Facebook or MySpace or Ning, and the more you can leverage the excitement of your fans, the better off you will be." -Daisy Whitney

Mitt Romney Solicits Video, Votes

Mon, 19 Nov 2007 18:01:26 -0800

Situation: Massachusetts Gov. Mitt Romney formed an exploratory committee on Jan. 2 to evaluate a bid for the Republican candidacy for president. The campaign launched its Web site that day, including a video section dubbed MittTV. MittTV, powered by Web video provider Permission TV, has expanded to feature more than 220 videos broken into 10 channels that are programmed relevant to events or issues. For the campaign, Web video represents a way to reach voters who may be tuning out from cable and broadcast television. It also lets the campaign deliver the facts and analysis it wants to deliver, without the risk that journalists will spin a story unfavorably. The site’s content includes a channel with clips and analysis of the Republican presidential debate over the summer. The campaign also produces videos from various Romney events, such as when he won the Iowa straw poll on Aug. 11. Other offerings include videos from a trip that Romney’s five sons took around Iowa in the so-called “Mitt Mobile” this summer.

Group: Mitt Romney Campaign

Video play:Using the Web to distribute videos that communicate the presidential candidate's message, using both campaign-produced and user-generated segments.

Strategy: The Romney campaign sought a way to get its message across while stoking supporters' interest in Gov. Mitt Romney's race for the White House. Using technology from Permission TV, the campaign has been posting video on its own site and seeding the clips across the Web.

Result: The campaign used a contest that solicited supporters to create campaign commercials for the candidate. More than 100 videos were submitted and the winner's work was played on TV in New Hampshire.

The videos vary in length but usually are no longer than five minutes. The campaign brings cameras to most of its events to capture footage. The campaign has standardized its editing and camera equipment around the relatively new high-definition format known as HDV. All the videos are hi-def and widescreen. The campaign uses Sony HVR-Z1U camcorders, and the editing software is the Adobe Creative Suite Production Studio. Steven Smith, director of online communications for the campaign, said he takes a video production laptop from 1Beyond with him wherever he goes. “It is essentially an entire post-production studio that fits in a backpack,” he said. “This has enabled me to produce, for example, the Iowa straw poll wrap-up piece while I was waiting for a delayed flight at the Milwaukee airport." The most popular videos on the site are usually those the campaign staffers actively promote in e-mail blasts and are related to specific topics, Smith said. The Romney campaign also posts its videos on a YouTube channel. To date, the campaign has posted more than 430 videos on the video-sharing site, generating more than 2.5 million views since January. On Romney’s Web site, the videos have lured more 2.3 million views collectively. Smith declined to disclose page views for the site, but said it’s competitive with other campaigns. “We are investing in Web video for the same reason we invest in anything in the campaign—to drive his messages or raise money for the campaign or to mobilize voters,” Smith said. “I once saw a news story of a college student who had driven several hours to see Gov. Romney speak and he had talked to a reporter when he got there, and his answer was he watched a ton of clips on YouTube of the governor and that was the primary basis for his support.” The campaign is keenly aware that increasing numbers of people of all ages are getting their news and commentary from online sources. With regard to Web video, that’s particularly true of younger people who adopt technology early, Smith said. The costs vary for creating the videos, depending on whether the campaign sends a one- or two-person camera crew. The camera people and video production crews usually are consultants to the campaign. Smith declined to disclose specific costs for video. About a dozen people at the campaign from a staff of a few hundred work on Web site development. A few of those people work regularly with Web video, he said. Problem: Given Romney’s focus on Web video, the campaign needed to find a way to let users participate, too. That initiative took the form of a contest to see who could produce the best user-generated advertisement for the candidate. The danger with that approach was that users might use the material supplied to contestants to create anti-Romney messages. Solution: Romney’s campaign partnered with Yahoo! and the Web company’s subsidiary, video editing software maker Jumpcut, to launch a contest Aug. 29 inviting users to create their own TV ad. The winner was announced Sept. 27. Romney’s campaign provided 36 audio tracks and 44 approved video clips for participants to use to create the ad, thus ensuring the final product would be pro-Romney. All of the videos submitted were screened before they posted online. The winning ad appeared on TV. “We wanted to have an ad we could feel proud of and put on air in Iowa and New Hampshire and accurately reflect his message,” Smith said. Evaluation: Nearly 130 videos were submitted. The campaign chose nine finalists and posted their videos. Online viewers voted on the winning video. The contest generated more than 100,000 video views. The winning video received 47 percent of the viewer votes and became the new TV ad for the campaign for a week in Iowa and New Hampshire. “This is the first of its kind and no other campaign has really harnessed user-generated video like this. We are continuing to do and create original videos that will spread Gov. Romney’s message,” Smith said.

Toyota Wages Web-Video Warcraft

Mon, 19 Nov 2007 14:50:20 -0800

Situation: For the last four years, advertising agency Saatchi & Saatchi’s Los Angeles office has created ad campaigns for the Toyota Tacoma truck that employ so-called found footage, creating spots that appear to be user-generated. The segments have proven popular, circulating on video-sharing sites. The ads are not found at Toyota.com; it’s strictly a video-sharing strategy. “We set out to do the Tacoma work knowing that our audience is much more diversified than a pure television audience,” said Saatchi & Saatchi Creative Director Steve Chavez. “We want our consumer to embrace it and the branding.” The 2007 assignment from Toyota called for a 30-second spot that would convey the attributes of strength and power Toyota wants associated with the Tacoma. Saatchi & Saatchi’s ads for the Tacoma play off the theme of the midsize truck doing something extraordinary.

Company:Toyota

Industry:Consumer Goods

Video play:Going viral with a TV spot

Strategy:As part of Toyota's Tacoma marketing campaign, the company hired Saatchi & Saatchi to create a spot that would appeal to younger audiences. They chose to place the truck in the World of Warcraft video game environment.

Result:The spot has drawn as many as 3 million views on the Web.

Problem: This year, the Saatchi & Saatchi creative team faced a dilemma, trying to create a spot that would be as popular as previous commercials for the Tacoma. Past videos have depicted a Tacoma driver leaving his truck on the ocean shore to go kayaking. While he’s gone, the truck is smashed against the rocks by the roaring tide. When the driver returns, the truck is exactly where he left it—unharmed by the onslaught. In another, a Tacoma driving through the desert is struck by a meteor. Despite a direct hit, the Tacoma drives on. The first spot in the series featured a Tacoma owner’s girlfriend who couldn’t stand competing with the Tacoma for her guy’s attention. She has the Tacoma pushed off a cliff to destroy it. To her dismay, the Tacoma survives without a scratch. Solution: Saatchi & Saatchi’s creative team went virtual, placing the truck in the World of Warcraft video game environment. The end result is the ad called “Truck Summoner.” Saatchi partnered with World of Warcraft creator Blizzard Entertainment. Both Toyota and Blizzard wanted to remain true to their brands, which meant creating an animated version of the Tacoma and inserting it in the game in an unobtrusive way. Saatchi creative executives placed the video on YouTube on the Friday evening before the spot went on the air. They wanted it to look like an authentic post by any user on YouTube. By Monday morning, there were multiple additional postings from people who saw it on air and recorded it off their TVs. The spot spawned homages, including a video of a guy trying to “play” the commercial with his videogame controller. All the software used to build the Tacoma ad into World of Warcraft was proprietary, owned by Blizzard. Saatchi worked with visual effects company Hydraulx, which Blizzard had recommended. Hydraulx animated the Tacoma to place it in the World of Warcraft game. On a two-month production deadline, a team of about a half-dozen people created the ad. Executives involved in the project declined to say how much the production cost. The ad features the truck navigating through the video game’s backgrounds, then being scooped up by a dragon. The Tacoma then bursts out of the dragon’s chest, with the monster’s still-beating heart in its bed. Blizzard was taken by the concept, and now successful players are rewarded with a dragon’s beating heart if they get to level 70 of the game. Evaluation: After debuting Oct. 6 on television, “Summoner” took off on the Internet. On YouTube, that posting has generated 1.6 million views. Additional postings have come from people acting on their own. All told, the spot has drawn as many as 3 million views. It also has spread virally to blogs and social networking sites such as Facebook. On television, the ad will continue to play for months to come, through the NCAA tournament and into the summer. “We were incredibly successful with that campaign from a creative aspect, and certainly a success in sales,” Chavez said. Since 2003, when the “Unbreakable” campaign featuring found footage began, the Tacoma has been the top-selling compact truck. “We’re very pleased with the return on investment of this campaign,” said Cindy Knight, marketing communications public relations manager for Toyota Motor Sales USA. -Allison J. Waldmann

Chronicle Books Turns to Video

Mon, 19 Nov 2007 07:57:01 -0800

Situation: Chronicle Books is an independent, privately-held publishing house in San Francisco that specializes in illustrated gift books and cookbooks. The company was founded 40 years ago and publishes about 400 books per year, with about 100 of those for the children’s market. Problem: One day while riding on the BART train in San Francisco in 2005, director of publicity Andrea Burnett noticed that many of her fellow commuters were watching cell phones and iPods. That “Ah-ha” moment led her to conclude that Chronicle Books needed to deliver its vast array of intellectual property in video form as well. “We should be marketing to consumers to maximize visibility of the brand,” she said. Her first effort was to start producing audio podcasts with Chronicle’s authors in the vein of NPR’s “All Things Considered,” she said.

Company: Chronicle Books

Industry: Publishing

Video play: Chronicle is using Web video to bolster awareness of its authors and new titles. Its short profile segments cost about $4,000 each to produce. Chronicle works with Turn Here, a video production operation, to create the videos.

Strategy: Being a West Coast publisher, Chronicle needed a way to create awareness of its products in other markets, particularly New York, and the general media.

Result: The videos created by Chronicle to bolster its authors' profiles have helped the company promote the writers and pitch appearances on national TV, including "The Today Show" and "Rachael Ray." After those appearances, sales jumped. The company also offers the videos on Amazon to give potential book buyers a better sense of whether they're interested in a title.

“That is reflective of our mindset,” Burnett said. “What most publishers do is have podcasts with authors reading and ours are like NPR segments where if the producer is a cook, we go into the kitchen and you can hear the clanging of the pots and pans. It’s like hearing a regular radio segment.” Chronicle began using those to promote authors for potential radio coverage and as an enhancement to the company’s Web site. As the Web video revolution took shape, the next step was to migrate to the new medium. Chronicle’s PR staffers met with bookers in New York in January of 2007 for the various morning shows and talk shows on broadcast networks to pitch the most “media-genic” of its authors. “When I was doing these meetings I realized every single meeting for TV broadcast and ‘Good Morning America’ and others ended with, ‘Do you have video of these people?’” Ms. Burnett said. Burnett set out to change that. Video was particularly necessary for Chronicle since it’s a West Coast publisher and most media outlets are in New York. “We would pitch an author and I’d have to scramble to get tape to ‘Good Morning America,’” Burnett recounted. The solution: That’s when Chronicle turned to San Francisco production company Turn Here to produce two- to three- minute videos of its authors to post on the Internet. TurnHere uses 3-chip digital video cameras and Final Cut Pro to edit. The Web video production house hires directors and editors to shoot and produce the pieces, which in Chronicle’s case are shot in the same style as a morning show segment. For instance, the video of the co-authors of “I Was a Really Good Mom Before I Had Kids” features the two writers, Amy Nobile and Trisha Ashworth, sitting on a park bench discussing the expectations today’s moms place on themselves. Chronicle primarily uses the videos for publicity, but also posts them on its site, on TurnHere’s and on Google and YouTube. In addition, Chronicle has begun offering the videos to online customers such as Amazon, BarnesandNoble.com and Borders.com. “Sometimes to get a customer like Amazon to make a bigger buy you have to help them with more marketing,” Burnett said. Evaluation: “The primary purpose of these videos is to land national media attention and national media attention sells books,” she said. The videos cost about $4,000 each to produce. Most of that money is earmarked for the editing of the short clips. In part due to the attention the videos generated, Nobile and Ashworth appeared on “The Today Show,” The CBS Early Show,” “20/20” and “Rachael Ray” in the fall. Burnett credits the video as playing a key role in landing that publicity. That in turn led to higher revenue with sales almost tripling the week after “The Today Show” appearance. After the "Rachael Ray" appearance, sales jumped 85 percent for the week. Each of the five publicists at the company develops media plans for the titles they handle. Burnett now expects video will be a key part of the publicity for all major 2008 titles. “If you have a big title that warrants spending money, if you are printing 50,000 plus, we’ll do a video for a book,” she said. She expects Chronicle will produce videos for about 10 or more books next year. “The landscape of publicity in book publishing has changed so dramatically we can no longer do a compelling press release and send it out to writers. You need a different kind of hook right now,” Burnett said.

Surfline: Riding Web Video Into Media Market

Mon, 12 Nov 2007 19:00:10 -0800

Situation: Surfline, which started as a surf-forecasting service, is looking to Web video to cultivate a new stream of revenue from advertisers. Advertisers’ interest in the young males who frequent the site is propelling the company’s diversification into the media business. The company’s Web site addresses those twin goals with a mix of content: Predictions on where waves are going to hit around the world, user-generated and professionally produced video, photo galleries, surfcams at well-known breaks and news. “We were a utility and perceived as such,” said Robin Walker, the company’s VP of sales. “Now with new media, that image is changing. The audience is engaged and we can support what the clients want. It’s a dual-revenue model.” Problem: Surfline wanted to tap advertising revenue to complement its subscription revenue, as well as offer features to draw and retain users.

Company: Surfline

Industry: Wave forecasting, media

Video play: Entertainment, advertising, marketing

Strategy: Surfline houses both user-generated and professional content on its site as a way to entertain users and attract new subscribers to its data service. The company also creates sponsored videos and distributes them around the Web.

Result: Surfline's Web traffic is boosted by Web video and the company is able to charge CPMs of about $28, around the industry average.

Solution: Surfline was in the enviable position of wanting to build a media business based on a subject matter that lends itself to video and still photography. The surf film genre took off decades ago and developed a dedicated following that has gobbled up the content, whether in theaters, on DVDs or on YouTube. Surfline founder Sean Collins, who engineered the software that generates wave predictions, moved to tap that interest in surf videos more than five years ago. He hired a video editor who was tasked with taking user-generated content and edit into clips that could be used on Surfline.com. Surfline went on to build video capability from the ground up on its Web site, developing the software tools that would accommodate the medium. Over the last five years, the company has tweaked the video player using in-house talent and outside contractors. Today, Surfline employs a video editor and an assistant who cull user-generated submissions and professional content to host on the site and propagate on video-sharing services. Most of the video on Surfline.com is delivered in Adobe Flash and QuickTime formats, and Surfline rents rack space to store the files. Akamai serves the video. The company has also gotten into production, partnering with surf apparel company Hurley to make videos that feature a professional surfer interviewing surf stars about the tournament trail and other subjects. That series, “Going Off,” hosted by Pat O’Connell, is produced by video pros from the TV and film industry. O’Connell is on contract with Hurley, Surfline doesn’t incur costs for his talent. Much of the site’s user-generated content comes over the transom free, whether it’s from enthusiasts or surf companies that deliver high-quality video of their celebrity team riders. Surfline will pay for some videos if the quality is high enough, Walker said. The costs vary, but the company doesn’t offer more than a couple hundred dollars for submitted video. For Surfline, distribution is the next hurdle. The company posts its best material on sites like YouTube and Break.com, but because the creators own the clips, Surfline is limited in how it can use the content. Taking liberties with the rightsholders’ video is out of the question, given how tight-knit the surfing community is, Walker said. The company currently doesn’t have the resources to undertake a more aggressive video syndication strategy, but tries to distribute clips as broadly as it can with in-house staff. Ultimately, the plan is to syndicate through partnerships with partners that have large audiences that would enjoy surfing content. That means approaching TV networks, advertising clients with large audiences on their own sites, and social-networking sites, Walker said. The company is tapping both a cost-per-thousand model and a sponsorship model to wring revenue from Web video. The site draws 1.2 million unique monthly visitors, which lets it charge a $28 CPM for ads linked to video, about the industry average, according to Walker. Surfline sells both pre-roll ads and display ad units to accompany the videos. “We are in a situation that lets us sell on an impression-based model, so we aren’t stuck in that silo where we need sponsorships,” Walker said. The surf industry’s long acquaintance with video entertainment has made it quick to embrace Web video advertising, and often clients have their own staff to produce material, he said. Surfline works to tap that endemic market, but also works with agencies on ad deals. Sponsored video is the latest revenue play Surfline has made in Web video, with the Hurley “Going Off” series marking the first such deal the company as made. “If we find the right product that fits the advertiser’s identity, that works for both of us,” Walker said. Evaluation: Surfline monitors how many videos are played and viewed, but can’t break out to what extent video is drawing or keeping people on the site. The company does, however, have data showing that more people are watching videos on Surfline.com than in the past and that those viewers tend to be younger. Walker characterized the year-over-year growth in consumption of video as dramatic. By Greg Baumann

Newsweek.com Seeds Site With Video

Mon, 12 Nov 2007 11:21:02 -0800
Situation: Newsweek, like other major print publishing entities, is realizing that Web video is a valuable adjunct to print story telling and may offer commercial growth. Creating an electronic publication that tells stories in an engaging way, while creating a business that will expand as print revenue contracts, is vital to its future. “We decided it was time from a technology standpoint to plant the flag with our own software, our own ideas and our own designs,” said Newsweek.com Editor Diedre Depke. Transitioning from a seven-year alliance with MSNBC.com, the Washington Post Co., owner of Newsweek magazine, had to relaunch the Newsweek.com Web site as a separate entity. That meant the company needed to create a cutting edge, news-driven site that is rich in video. Problem: To successfully expand the video capabilities on Newsweek.com, the company had to develop the technologies. Solution: Beginning in 2006, Newsweek.com built the site in-house, adding more than 10 new staffers, including Web developers, project managers and experts in video. “We spent about a year in meetings just planning and arguing and coming up with what we have now,” she said. “Our biggest expense was design.”

Company: Newsweek.com

Industry: Publishing

Video play: Augmenting print journalism with Web video.

Strategy: Adding a Web staff to create video in conjunction with editors and correspondents has resulted in the production of 7-10 segments a day.

Result: The Web site, which features video prominently, is profitable, with annual revenue growth of about 30 percent.

The Web site is budgeted separately from the print product at Newsweek, which keeps money available for developing new technologies and new products, Depke said. She said the Web site is profitable, with advertising revenues having grown over the past seven years on an annualized basis between 35 percent and 50 percent. Currently, that growth has stabilized at around 30 percent, she said. Advertising is sold by the magazine's sales force and the staff at Washington Post Newsweek Interactive (WPNI), which specializes in selling space on Web properties within the company. “More and more, almost exclusively, when we are presenting to advertisers we’re talking about an integrated buy,” Depke said. “They are buying pages in the magazine and they’re buying advertising online and one without the other is a far less successful way for us to pitch.” On Newsweek.com, 90 percent of the advertisers placing spots adjacent to video are national brands, like Hewlett Packard and Microsoft, Depke said. International advertisers are also showing interest, with Rolex, Airbus, ING Direct and others buying space. Other companies buying video ads on Newsweek.com include New York Times, Capital One, Chevrolet and Conoco Phillips She declined to comment on the site’s annual budget or advertising rates. Currently, the company has four video producers, who shoot and edit segments. That team is led by executive producer Jon Groat, and they work directly with creative director, Rolf Ebeling, and Newsweek.com’s news editor, Carl Sullivan. “We did not bring in TV people,” Depke said. “We brought in Web-centric video people. They’re young and they really are extremely creative. The technologies that they work with are so completely different from television that we think that was the way to go.” Newsweek.com is looking toward the broadcast industry for talent now, though, and currently the company is in discussions with a veteran TV producer to help produce politics videos. The video squad’s equipment doesn’t differ much from the gear used at other publications producing Web video. They shoot with Panasonic DVX100 cameras, Final Cut Pro for editing and Soundtrack Pro. The video team collaborates with the editorial staff, and Newsweek editors set the agenda and budget the time of the video producers. Newsweek Editor Jon Meacham practices what he preaches with regard to Web video, doing his own segment, “Run Through,” every week. That feature, which lives on the home page on Sundays and Monday, functions as a sort of letter to the readers. The video team is creating several different types of reports, including original programs using Newsweek editors and writers to present stories, as well as video feeds that are revamped to fit the Newsweek.com style. They’re also producing mini-documentaries that resemble broadcast news reports, Depke said. Newsweek.com produces 10-12 news stories a day and between seven and 10 pieces of video, said Depke. The Web staff adds new video to the site about once an hour, changing the main video on the home page once a day. The aim is to increase that pace to change out the video on the home page twice a day in the next few weeks. Some of Newsweek.com’s video has been recognized by professional associations, including an Emmy-nominated segment about the families of soldiers who have been killed in Iraq. Evaluation: Newsweek.com is reinventing its online image by developing original video programs. “There’s value in appointment programming, so if people know that Friday the celebrity program is going to be there and on Wednesdays, Steven Levy is going to talk about gadgets, there is value in people developing relationships with programs and they want to come back and watch them, Depke said. Since the relaunch, traffic on Newsweek.com has almost tripled, according to Alexa.com. Newsweek.com will use advertising in the print edition to spread awareness of the revamped site, Depke said. “That’s millions of people a week,” she said. -By Allison J. Waldmann

U.C. Berkeley Goes Wide on YouTube

Sun, 11 Nov 2007 13:29:15 -0800
Situation: Back in the infancy of the Internet in 1995, the University of California at Berkley started a service through its Berkeley Multimedia Research Center to make many of its courses available online to students. Today, those efforts generate Webcasts of 53 classes. That evolution began with a project that used RealNetworks; Real Player video player and a handful of computers. The center began taping lectures to post on the Internet as a study tool for students and in 2001, that program moved into the educational technology services division at the university as more teachers requested for their courses to be shot and offered online. Since then the technology services division under Ben Hubbard, co-manager for Webcast Berkeley, has built technology to capture the video and audio for the Webcasts of the classes and has steadily expanded the number of classrooms that are equipped to capture lectures on video. His division sends out invitations by mail to teachers who are using classrooms that have the Webcasting equipment. Those lecture halls are covered by cameras including a number of Sony DSR-250 (DVCAM), Sony DSR-300, Sony DSR-390, Sony DSR-400, and Panasonic HVX-200 (HD) and nNovia HDD DV Recorders. To edit, Berkeley, uses Apple Final Cut Studio, Canopus Procoder, Sorensen Squeeze, and Real Producer. Sound and images are processed through computers, video encoding equipment, servers and other essential hardware co-located at the school’s data center. For each lecture, a camera operator shoots the lecture, sends it to a central computer database and posts it as a Webcast for live and archival viewing. The school also includes more than 150 full courses in video available via the archives. Mr. Hubbard relies on a course administrator, Richard Bloom, to handle the daily activities of the management of the program. “His job is to make sure all the Web casts work each week and to provide outreach and training to the faculty,” Mr. Hubbard said. The school relies on students as camera operators, who set up the equipment at the start of the class and break it down at the end. Problem: This fall, Berkley wanted to offer the courses to a wider audience. While anyone can access the lectures on http://www.webcast.berkley.edu, Mr. Hubbard believed the university reach impact more people with broader Web distribution. Solution: Berkeley has been offering the lectures on iTunes since April 2006 and started offering classes on YouTube in early October. “YouTube is a better platform for our content than other sites. We have more control over the environment and it’s easier for people to access,” Mr. Hubbard said. The production costs for a single course per semester are about $4,300 to post online video across the university site, iTunes and YouTube. That includes the student labor, the cost of the computers, cameras and equipment and the staff that works to produce the Webcasts. Mr. Hubbard’s division charges $2,000 per department to participate to help cover costs. Evaluation: Because the University of California is a public university, it doesn’t evaluate return on investment in the same way a corporation does. “We feel it is an outstanding study tool. If you are ill and miss a class you can catch up and watch it online. If you are a non-native English speaker you can go back and watch it over again,” Mr. Hubbard said. In 2006, Berkeley logged 4.3 million views for the 53 classes on its site and in its archives. In the first two-plus weeks on YouTube, Berkeley content attracted 900,000 views. “We really felt as a public institution this is sort of our mission,” he said. “As a program we can’t quite reach as many people as we could with YouTube. That says something about our mission–to make our content accessible.”

Kohler Videos: Inspire, Instruct

Sun, 11 Nov 2007 12:56:57 -0800
Situation: Kohler Co., the kitchen, bath and furnishings company, recently revamped its Web site to feature video from more of its divisions. The videos on the site have moved beyond old favorites that showed products, such as sinks and showers, to productions that look more like home-makeover shows on cable channels. Kohler has a long history of using video as a marketing tool and has been putting some of that video on its site. The effort wasn't organized until October, when the company launched a new video player using Brightcove's technology. In July, a new version of the player went up that created channels, making different kinds of videos from different parts of the company more accessible, according to John Engberg, manager of global media and Web development. From October to June, the company had about 2 million video plays on Kohler.com for its plumbing division, and less traffic for its other divisions. More recently, the company had over 300,000 plays in August, the highest monthly traffic to date by at least 15 percent. With the old navigation system, the most popular videos showed products, particularly showers, baths, and toilets, and prior to October, the number of videos being played on the site was quite small, Mr. Engberg said. Mr. Engberg said that the company is just starting to analyze the use statistics for the new Web video format. The company is also planning to do some e-mail promotion for some of the new video on its site. The company views video as a marketing tool rather than a revenue generator, Mr. Engberg said. He notes that there are some people that still prefer to get product information via text and still images. Other companies, he said, have used too much video. That bothered customers and those companies have been forced to dial it back, he said. But he noted that in Kohler’s category, users get very involved. “If you’re going to knock down your wall to redo your kitchen or do your dishes in the basement for three months while your kitchen is ripped up, you tend to have some involvement in your decision about what products you’re going to select,” he said. “There’s a reason why there’s all those cable home shows. People have an interest in that and the more we can leverage that, it’s better for us.” The biggest cost involved in Kohler’s Web video effort relates to production. The company does a lot of its production in house, which keeps cost down. It pays Brightcove to archive, house and distribute video to users based on traffic levels. He characterized the cost as “pretty reasonable.”. The company is also looking at using Brightcove to syndicate its video to its product distributors and showrooms for use on their Web sites. Kohler is still building its Web video group. At this point, there are about six or seven people who handle the projects. They report to the company’s director of advertising. The staff includes a producer, a content editor, a project manager and support staff. Together they produce between five and 15 videos per month. Much of the video that goes on the site is shot by the company, mostly using Sony Betacam cameras. Some projects are shot with the Panasonic HVX 200 (HDV), while others are shot on mini-DV format with the Sony DSR-PD150. Most productions use the Avid Media Composer Adrenaline system for editing. For less graphics-intensive projects are edited with Avid's Xpress DV Pro HD software. For videos that need to be edited on site, the company uses the Macbook Pro and Final Cut Suite of products. He says he’s trying to stress to people in his company that making video is getting much simpler. Not long ago, you needed to make story boards and production was a big deal. “Now any 13 year old with an idea can get something pretty innovative up there in no time.” One of the new types of video on Kohler’s site is called “Idea Homes.” Kohler products are often used in magazine spreads featuring a new or rebuilt home, and the company has begun filming those homes. The videos have additional elements that go beyond kitchen and bath products to including shots of the rest of the house and interviews with the owners. Video clips about a refurbished home in Manhattan’s Harlem neighborhood built for Dwell magazine will be featured in an upcoming newsletter that reaches a half million subscribers. “That will blow the numbers up really fast,” Mr. Engberg said. “I’ve been at Kohler for 13 years and long before I was here they were doing video. So we had the capability. We just didn’t have a way of getting it out there,” Mr. Engberg said. Problem: Mr. Engberg said that the biggest problem was finding a standard format for video that all divisions of the company could use. Across the Web, different formats were being employed, which meant that users had to worry about downloading different players to view video, which in some cases didn’t work. Within the company, there were also differences of opinion about how Web video would be presented. “Every time someone wanted video, it was a design decision,” he said. “What’s it going to look like, what’s the functionality?” By using the Brightcove solution, the company was able to simplify and unify its video presentation and that freed the divisions to concentrate on the content of their videos, rather than the technology behind it. Solution: Mr. Engberg said Kohler talked to several companies about outsourcing its Web video hosting and distribution. They also considered having a video player custom built and serving clips on the company's own servers. “We considered doing it ourselves. We saw from experience that if we drove a lot of traffic to the video player, that caused bandwidth concerns,” he said. That led to us liking the idea of outsourcing it.” He said Kohler views its solution as cost effective, both from a dollars and cents perspective as well as from a time standpoint, because of the work the company’s technology staff people would have had to do had the job been done in house. Evaluation: Kohler is planning forge ahead with its Web video efforts. It plans to examine what’s working and do more of it, and also expects more of its businesses to begin putting video on the company site. At this point, Mr. Engberg said it’s a little too early to say whether its Web video marketing is having an effect on the company’s bottom line said. “We just know that people like it. They watch most of the videos and we’ll start tracking with the new configuration what are the most popular areas,” he said. The videos on Kohler's site do not have direct response mechanisms, but the company is looking to use Web analytics tools to be able to better gauge whether videos are having a positive marketing effect. Over the next six to nine months, the company should be able to follow a user's click path in order to figure out whether a person who sees a particular video is more likely to actively shop for the featured products or buy them. Kohler doesn't do e-commerce on its site, but the company has found that if a user searches for the location of a retailer, that’s a sign of intent to buy. Also, the company has found that if users set up folders to store products and projects, they are also likely to follow through and purchase products he’s seen demonstrated on the site." Mr. Engberg said Kohler is dedicated to providing users of its site a better experience than its competitors. "We’d rather err on the side of giving more and better information, so that's really what’s behind the decision."