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.)
Tags: Advertising, Communication, Marketing, online advertising, Online marketing, paid search, Search, SEM, SEO
Most business owners have heard about Google or Yahoo ads and many are participating in these programs. These solutions allow your specific ads to reach your target audience at minimal cost.
So what’s the down-side? Can paid search actually hurt you and your brand?
The answer is a resounding yes. Done right, paid search advertising is one of the easiest ways to increase knowledge of your product or brand. But done poorly, it can cause your marketing budget to hemorrhage and turn your customers against you.
There are two ways that your paid search could be detrimentally effecting your brand.
Tags: Advertising, Amazon, Citibank, Communication, Godin, Marketing, Online marketing, Seth Godin
Update: I’ve received some attention from the post below, but I feel as though I should clarify a few things.
The email from Citibank was lame, but for a huge company, not totally surprising. However, the arrival of this email does not necessarily negate that the company is listening. Toward the end of the post, I make that connection and most of the time, it’s true. In this case, however, I don’t think it is responsible to connect one lame email with a company’s entire attitude.
That said, the moral of the post – companies who fail to listen will be overtaken by those that do – still stands. I believe that will only become more apparent as time goes on. -End update
To fail may be human, but for a company to fail at customer service these days may well be disaster.
You may remember when I mentioned a Citibank ad last week in a post about features versus benefits in advertising. Their print ad was spot-on when it spoke about how Citibank fit into their customers’ lives (plus, who can resist a cute puppy?).
So when I sent them an email noting my complimentary post, I expected at least a quick “thanks!” That’s the response I got from Moosejaw (they even promised to send me some schwag which must have gotten lost in the mail…). So imagine my surprise then almost 48 hours later, they reply with a standard “sorry, we can’t even respond to your email” email.