Tags: Advertising, business model, focus groups, Marketing, monetizing, Research, UGC, video
In their new September issue, Fast Company magazine features a fascinating story about the comedy web video business and how it’s almost impossible to make these websites profitable.
They lay out many of the current business models, but I think an addendum is useful. In this post, I will outline a mindset that hurts that industry, what the current business model is and why it doesn’t work, a suggestion to ensure profitability, and the business model that can make an online video site profitable.
First, The Mindset
We tend to think about web videos as a “thing.” It is a product. It is content.
Forget this mindset. If you’re a video producer, web video might be a tangible thing that comes from tangible people sitting around your tangible office. But it’s not.
For your audience, web video is an experience. There’s no actual product for the viewer – the video elevates the spirits or gives us hope or connects us to others. It has more in common with a trip to Disneyland than it does with buying razor blades.
So stop thinking of a video as a commodity and start thinking of it as an experience you provide for your viewer.
Second, The Model
As the Fast Company article points out, the prevailing business model is advertiser-based. This has been the case for most things in the U.S. for more than half a century.
However, the advertiser business model cannot support web video. Consider it: the marketplace is fragmented, niche sites have the most loyal visitors, online is still new to many advertisers, audience has a decreased appetite for ads, and the content (at least on the comedy sites) is oftentimes…edgy, to put it diplomatically.
Even off-shoots of the advertiser model don’t work, such as product placement and sponsored shows. The huge conglomerates that have the money to invest in these small comedy sites only know these sorts of models – give the product away in exchange for some advertiser time.
No matter how many times you throw money at the problem, this business model still doesn’t work.
But that doesn’t mean web videos will never be profitable. (Misters Murdoch and Branson, please have your assistants print out the following explanation.)
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Tags: Business, design, IA, Information Architecture, Usability
Information architecture isn’t sexy. In fact, good information architecture (or “IA”) shouldn’t be something your website visitors even notice.
Information architecture is basically how your site is designed. We’ve all seen site maps – those are basically outlines of your IA. It’s the organization of your website, how things are arranged, and it needs to make sense to your visitors.
Unfortunately, not enough businesses focus on their IA or they assume their customers use their site in the same way they would. This blog post explains why you must pay attention to your IA and includes some handy hints to figure out if it’s working.
I Can See Clearly Now
The non-profit Institute for Dynamic Educational Advancement (IDEA) recently released a study called Finding Information: Factors that improve online experiences. One of the main findings was that visitors are looking for “simple, accurate, fast, and easily navigable web sites.” Visitors to websites reported feeling lost on websites or not knowing where their desired information was in much higher percentages than the designers of the websites.
Your designers may have the best of intentions and be highly creative, but it’s up to you to ensure your customers can find the information they need and know where they are on your site at all times.
Website navigation starts with your IA. Here are some handy hints to help you determine whether your website is easily navigable and, if not, how to start fixing it.