The Macrosite for News, Analysis and Opinion about the Future of the Internet
Nicole Ferraro

One Degree of Change in Video Consumption

Written by Nicole Ferraro
8/21/2008 5 comments
no ratings
DISCUSS   Digg   Del.icio.us   Reddit   Email This   TWEET THIS

We Web users have it pretty good at the moment: In exchange for the trove of digital content we consume on a regular basis, we're generally asked little more than to pretend to notice the occasional banner ad.

But when it comes to requesting much more from us, we don't really want to hear it. (Sorry, YouTube Inc. , your business model is simply too great a burden on my plan to watch Golden Girls clips all afternoon.)

For this reason, among others, video sites are having a difficult time making money, with even the big players struggling to find a business model. The obvious solutions have involved testing pre- and post-roll ads, but market research shows that users are not likely to put up with such ads on short-form video.

"Pre-rolls, post-rolls, and banner ads are too intrusive and are ineffective," says Scott Broomfield, CEO of Veeple, a Los Gatos, Calif.-based company that provides tools for users to create interactive video. Rather, he says, relevant ads must be embedded throughout the video to create an interactive experience.

With Veeple, content creators can embed anything from links to snarky thought bubble comments in their videos. For Website owners, there's a subscription fee of $99 per month to use the platform. The interactive areas, or "VeeSpots," are intended as an answer for those looking to monetize video content.

"The thesis we held is, what if we can figure out a way to take that branding experience and put that inside video?" he says. "There needs to be a way to better monetize the video itself and how to do so in a way that's non-intrusive so you don't just click it off and just disengage." Broomfield says Veeple will allow for drop-down menus inside of videos to give the user the option to explore a certain person or product further, without interrupting the experience.

Making the experience "engaging" sounds nice and all. But those of us blessed with full-sized brains are well aware when we're being marketed to, usually rendering such efforts ineffective and users disinterested in the extreme.

"That's a fundamental problem and a fundamental opportunity," says Broomfield. "Part of being non-intrusive is to recognize you're being marketed to. The thing you've got to do is make that less intrusive and more relevant. If it's not relevant, then you really hate it."

Hmmmm... We may hate it even if it is relevant. Worse, this interactive model assumes that video viewers have an interest in being, well, active when, in fact, online video watching is enjoyed as a passive activity, often endured in a post-lobotomy-like state.

"One of the reasons I believe interactive television is not there yet is because when you come home at 10 o'clock at night to watch the news... you just want to watch the friggen news," says Broomfield. "Online video is a little different because you have the opportunity to share it. We know you're willing to engage to one degree. The question becomes, can you also change your behavior one more degree?

"If you were trying to change behavior five degrees or 10 degrees, forget it, game over."

With all hopes of monetization in the users' hands... let the games begin.

— Nicole Ferraro, Site Editor, Internet Evolution

DISCUSS   Digg   Del.icio.us   Reddit   Email This
Current display:       newest comments first       display in chronological order
EliteC
IQ Crew
Tuesday August 26, 2008 2:32:49 PM
no ratings
It appears everytime I turn around something else has populated the technology scene.  I hardly watch TV and when I am online, watching videos is not my priority.  All i can say right now is "What's Next"!
hbetts3
IQ Crew
Friday August 22, 2008 11:33:58 AM
no ratings

"Faye Ray" (sorry for the RHPS reference)

How were products marketed before "commercials?"  In the early days, shows had sponsors that had a commercial at the top and the bottom of the show (sometimes in between) and product placement (a la "The Price is Right").  Today, we get 15 minutes of show for a 30 minute spot (if we are lucky) and 18 minutes of commercials.

But, why the change?  Did the viewing population respond to being innundated with ads?  Did it increase sales even 1%?  I am not smart enough to be able to answer that and usually, quite honestly, I flip away from commercials to view some content... even if it's not something I want to watch it's, at least, not a commercial.

So, will these "subtle" changes impact video consumption?  Probably.  And I agree that it will be a negative impact.  Perhaps the banner ad isn't dead yet... it might have legs in the video world.  Especially if it contains products that are close to the tagged content of the video.

Mashka
Researcher
Friday August 22, 2008 3:44:06 AM
no ratings

I don't watch TV at all. I don't like not to have a choice.and Tv doesn't really give us any choice exept of what chennal to watch. But it is full of ideology political, and of course most of all- an ideology of consumerism- how should I look like, what to wear, what to read, or what to watch.etc...  In the Internet, at least I have a choice  of choosing what side of information I want to know.I could read the news from the Russian web-sites or go to any English speaking web-site and read completely different story  about the same thing- If I want.

But there are a great amount of people who like to watch TV and who shares the time of  being with Media between Internet and TV and I guess for them, interactive television is a real future.Well as soon as computer monitors will be the same huge size as TV panels:)))

jwallace
IQ Crew
Thursday August 21, 2008 10:59:09 AM
no ratings

Interactive tv isn't here because the services aren't supported(or are they?).  I can just imagine teenyboppers watching "Americas Best Dance Crew" and having 5 or more video IM sessions open and showing off their moves to friends by 2012I can just see the xbox live like gatherings except its tv. 

pre-roll post roll, I only put up with it at IMDB.com when I'm looking for trailers before I go and rent a movie out of the redbox for a $1 each. WAIT..I also did at NBC.com when they finally posted the track and field replays.

Nice article!

robertforsyth
Rank: Cave Painter
Thursday August 21, 2008 8:15:03 AM
no ratings

three words:

 DEAD FREAKIN' ON.

 Current models for advertising are so ineffective, it makes me want to pund certain parts of my body with a hammer everytime a sales person wants to move or add banners to a web page.

 

Nice article!

The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
previous posts from Editor's Blog
Nicole Ferraro
We're live on IE Radio right now with Dale Fuller, CEO of MokaFive. Come along and join us.
Nicole Ferraro
If you've been exhibiting signs of IE Radio withdrawal, today is your lucky day: IE Radio picks up yet again, this time with Dale Fuller, CEO of MokaFive. Fuller joins us at 2:00 p.m. ET.
Nicole Ferraro
Nicole Ferraro   8/31/2010   17 comments
There's a new trend afoot... It's called social networking. People use their computers and phones to connect with each other and make friends.
Nicole Ferraro
Nicole Ferraro   8/30/2010   24 comments
The old adage "Don't talk to strangers" seems to be completely lost on the majority of Web users. Sigh. Mom is not happy.
Nicole Ferraro
Nicole Ferraro   8/27/2010   46 comments
Earlier this week, the Los Angeles Times posted a story entitled "Blogger, beware: Postings can lead to lawsuits," discussing the growth of lawsuits in the era where everyone is a publisher. The article points to some recent cases where bloggers wrote some racy things -- like the blogger who said that three Chicago judges "deserve to be killed" -- and were taken to court.
5
of
IETV: the thinkerNet on film
5
of
2pm EDT
Thu
Sep 30th
an IBM information resource
sponsored content
big blue blog
an IBM information resource
sponsored content
Getting to Work on Smart Work: How IT Is Transforming the Implementation of the 'Internet of Things'
Organizations in all industry sectors are becoming more instrumented, interconnected, and intelligent -- and that's changing the way they approach virtually every facet of their operations. It's up to IT to help organizations adopt a "Three I's" approach that leverages the emerging Internet of Things and enables them to work smarter.

READ THIS eBOOK
your weekly update of news, analysis, and
opinion from Internet Evolution - FREE!

REGISTER HERE
Wanted! Site Moderators
Internet Evolution is looking for a handful of readers to help moderate the message boards on our site – as well as engaging in high-IQ conversation with the industry mavens on our thinkerNet blogosphere. The job comes with various perks, bags of kudos, and GIANT bragging rights. Interested?

Please email: moderators@internetevolution.com
Internet Evolution – not for thickies
Steve Saunders' Outernet
The Death of Anonymity: Part 3

Part 3 of 4   |  
See complete series
10|28|09   |   1:35   |   4 comments


What can users today do to protect their online privacy? The simplest and most obvious option is to not use the Internet – at all. However, once all digital information is consolidated over the Internet, trying to protect digital identity by simply unplugging from the Internet becomes impossible – a fact that has manifest implications for civil liberties, Saunders says.
Steve Saunders' Outernet
The Death of Anonymity: Part 2

Part 2 of 4   |  
See complete series
10|27|09   |   2:08   |   8 comments


By 2011 the number of Internet-connected sensors will exceed 1 trillion, making your chances of doing anything or going anywhere unnoticed pretty much zero. Saunders talks about how the 'sensortization' of the Internet is eliminating the traditional divide between online and offline populations.
Steve Saunders' Outernet
The Death of Anonymity: Part 1

Part 1 of 4   |  
See complete series
10|26|09   |   1:29   |   13 comments


The 20th Century Internet was characterized by the ability to interact with other people and information on the Internet largely without anyone knowing who you were. The Internet of this century, conversely, will be defined by identity. Saunders explains how Internet users are unwittingly contributing to the demise of the anonymous Internet.
Steve Saunders' Outernet
Search Inversion & Profiling: Part 3

Part 3 of 3   |  
See complete series
10|21|09   |   1:40   |   No comments


Steve Saunders talks about the risks inherent in uncontrolled, widespread profiling of Internet users, and how one day this practice could form the basis of a new industry, the Outernet, which in economic terms will have outgrown the commercial value of the Internet itself.
Steve Saunders' Outernet
Search Inversion & Profiling: Part 2

Part 2 of 3   |  
See complete series
10|20|09   |   1:29   |   1 comment


Search companies and social networks are collecting incredibly detailed information about their users, says Steve Saunders, who predicts that these 'profiles' could one day become commodities to be bought and sold by companies on 'profile markets' or 'identity exchanges’ – the digital DNA equivalents of the financial and commodities exchanges on which stocks, oil, and gold are traded.
Steve Saunders' Outernet
Search Inversion & Profiling: Part 1

Part 1 of 3   |  
See complete series
10|19|09   |   1:52   |   6 comments


One of the most important Internet issues of all time is being ignored by the media. In this three-part video series Steve Saunders explains how search companies are turning the tables on their users by creating user profiles for financial gain, and how soon this trend will explode into full scale profiling.
Thus Spake Mr. Cramer
That's Advertainment!

8|13|10   |   4:15   |   7 comments


Marketers want to sell you stuff, and they need your help. It's crazy, it's crass, it's fun for the whole family! It's the art form of the new millenium!
The Sole Man
Shiver Me Timbers

7|26|10   |   2:21   |   No comments


Digital pirates find easy pickings in the open waters of the Internet. Aaarrrrrr!
what.the.ferraro
Et Tu, Tweetus?

4|26|10   |   3:00   |   14 comments


Some theatrical productions are being reproduced in Tweeted format. Because, really, that's what we've all been waiting for, right?
Thus Spake Mr. Cramer
Hive Life

2|10|10   |   3:01   |   12 comments


We do love our social networking, but, according to computer scientist Jaron Lanier, we may be diminishing ourselves when we join the hive. “May be? Ha!” says Mr. Cramer.
Wisdom of the Big Chair
More Texting, Less Bandwidth

9|2|10   |   1:56   |   No comments


Nielsen’s recent numbers on the increasing use of texting bode well for enterprise networks. Shunning the phone in favor of text messaging could mean reducing bandwidth.
Reiter's Block
RIM Caving on Security

9|2|10   |   2:31   |   2 comments


RIM is giving in to demands by India to snoop on encrypted BlackBerry data. It's time to develop cheap or free encryption software for BlackBerrys and other cellular phones.
Second Shooter
Taking Copyright Protection Too Far

9|1|10   |   2:08   |   No comments


Two studios have filed suit against an ad broker for placing ads to help monetize P2P sites suspected of copyright infringement. That's taking a dangerous step toward what might be a worthy goal.
Singer at C-Level
Video in the Cloud

9|1|10   |   2:16   |   2 comments


Software giants are looking for cloud solutions to support our insatiable appetite for video. There will be blood. Yum.
Mary E. Shacklett
Wish List for Mobile Devices, Part 1

Part 1 of 2   |  
See complete series
8|31|10   |   1:41   |   2 comments


By 2014, mobile devices will overtake laptops as the appliance of choice for consumers. But device makers still have some wishes to fulfill, including mobile app simplification and the ability to better perform word processing/spreadsheet functions.
Second Shooter
Google Shifts From Free Content

8|31|10   |   2:14   |   6 comments


Google's foray into pay-for-view movies may be an indicator that the days of free ad-sponsored content are numbered, or at least that ad sponsorship won't fund nearly enough content.
Sweeney Blog
A Sharp Website

8|30|10   |   2:27   |   6 comments


Pencil sharpening gets the digital and artisanal touch, just in time for test-takers everywhere.
Mary E. Shacklett
Online Education Gets a Boost

8|30|10   |   2:02   |   8 comments


Online education, improving to better replicate the interactions that occur between teachers and students face-to-face, grew in double digits during the recession. Still, there’s more work to be done.
Reiter's Block
Educating Bill Gates About Education

8|27|10   |   2:34   |   8 comments


Bill Gates says where you study is becoming much less important, and the best college lectures will soon be found online. Reiter disagrees.
Second Shooter
Gmail & VoIP: Death to PSTN?

8|27|10   |   2:09   |   18 comments


Google's decision to link VoIP calling of PSTN numbers with Gmail, and to let Google Voice "call" Gmail VoIP clients, will devalue the PSTN and force telcos to fund unprofitable services or create their own VoIP transitions.

Enabling People and Organizations to Harness the Transformative Power of Technology