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: Marketing, Online marketing, Research, white papers
I read voraciously for this blog and for my day job. One of the best resources for marketing or blogging advice is white papers.
White papers give you a comprehensive view of one particular topic or problem/solution that you can read in the length of your morning commute. I have been blogging a lot on the ROI of social media lately, and Chris Brogan’s new white paper summed up a lot of my related thoughts to trust economics. (I only wish I’d read it before I had written those posts…ah well, I’ll cite it sometime in the future.)
Chris nails it in ten short pages. That’s useful to any busy blogger or marketer.
What are some white papers that have helped you? Share the links in the comments below. Also, what are some white papers you would like to see? I’m thinking about writing a white paper in the next few weeks, so suggestions are welcome.
If/when I do write that white paper, I will give advance copies to my subscribers before the general public. Subscribe via the RSS readers listed to the right or by email so you don’t miss out.
I look forward to hearing about the white papers that have helped you the most!
Update: I released my first white paper and you can download it here: Writing Content in a Web 2.0 World
Do let me know what you think!