And this inspite of having launched only last March and with well under 10% of YouTube’s stream. Both the NBC Universal and News Corp joint venture and YouTube are ad-supported.
“Advertisers are just more comfortable with professional produced content than user generated content. There’s still the fear of having there brand associated with the wrong content or porn!”, said Louderback.
In his keynote, the Revision3 chief also shared some of his thoughts on the online video market:
- 140 million Americans are watching Internet videos. “This is a big number!”;
- 60% are men between 18 and 34 years old;
- Younger men will mostly watch independent new stuff like Revision3, DadLabs…
- Younger women will prefer “catch-up” viewing of old shows from Hulu, Joost…
- 48% of videos are watched on computers/laptops versus 52% on TV
- Advertising sales are going up. $7 billion in 2012 for Forrester Research, $10 billion by 2013 for the Diffusion Group and $2.5 billion in 2010 for Lehman Brothers. The total TV advertising spend is $200 billion. So Internet video is still a small piece of the overall pie;
- Under 25% of the streams viewed are professional content but attracts 96% of the advertising dollars. And in 2013, it goes up to 98%!
- Online video advertising is tremendously more effective than TV: 80% better brand awareness, 45% increase in purchase intent over traditional TV, the audience is 47% more engaged with online ads than on broadcast TV!
[Co-Produced with TechPulse360.com]