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My Prediction is Validated About Business Model Of Video – Give Users What They Want October 29, 2008

Posted by John in social media, Technology.
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Taking credit for big trends is all the rage these days of blogging. So here is my self promotion post on the future of online video and future of online advertising.🙂

Today the news in the NY Times tells us about the future of online video and advertising. It comes as a shock to many people including Mike Arrington, Mathew Ingram, and others. With headlines from Wired like Hulu Celebrates First Anniversity, Gain Popularity By Serving Fewer Ads.

As predicted by me years ago and blogged here at Furrier.org – “Content is the Ad”

Hulu’s success is due to the a great user experience verses forcing the maximizing of moneitization. That is why Hulu is not littered with Ads. Why? Because the content is the ad. SNL’s franchise on TV is their product and their online distribution (widgets) is their ad. NBC TV broadcast was the product and their online coverage was their advertising. Why do the big content people do this? This is going to sound too simple – they know what the users want. And their product (main content franchise) gets a reward for it – more viewers. Badda bing. Simple.

One more time – CPM ads don’t work in social network or online in targeted user groups – said again for the zillionth time

How do you monetize: the plans for this new content model online will be different. Expect to see new contextual and behavior tools that serve users – a utility of some sort. For now it’s all about cross-promotion.

Successful online strategies have been successful if they do three things: 1) easy to use, 2) reduce steps, and 3) save time

Anything online that distracts users will lose – online experiences must be value-add. Advertising can be value-add and I expect new advertising solutions to be of value.

Comments»

1. Drew - October 30, 2008

“NBC TV broadcast was the product”
The product is the fully ad-loaded NBC linear stream with 20 minutes of ads per hour. It could be delivered online if….rights issues, guilds, affiliate relations etc etc. Nonetheless the linear stream is the product. How it’s delivered is secondary.


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