This is a facinating article by Phil Cooper about the advance of video and (UGC) user generated content on the Internet
Gasta.com has just launched its own unique video services great for 'mash up' mixs and 'speeding through' every body wants the 15 minutes of fame.
Prepare for Web 3.0
Phil Cooper, CEO, Utarget Networks
Video continues to expand rapidly online. This new market has been driven by users, both consuming and generating video. Professional digital producers, big and small, are now responding to this user demand by delivering their content online. Short form video is proliferating on the open internet and this may well extend to long form video content. Advertising is becoming the main revenue model to propel this market. Walled garden services may well become submerged under an open internet video tsunami.
Doubters should look at the US market to see the large amount of video now online. But advertising on US TV is holding up compared to the UK. Online spend over there remains proportionally only half that of the UK. So we’re behind the US in putting video online (by about 18 months) but, it would seem, ahead in the web encroaching on TV. It seems UK users are moving from TV to online particularly quickly. ITV and other commercial channels are finally responding to the threat as convergence looms ever larger.
Utarget is proud to have launched the UK’s first online video advertising net work in June 2006 and to have since led the growth of the UK video ad market. YouTube has demonstrated the huge user interest in video but has equally high lighted the problems in monetizing uncontrolled and variable content. In contrast, we represent video ad inventory across top tier websites offering quality content. As of this month, we’re pleased to include the leading online video pioneer, Blinkx, within our network.
Other networks and major sites now offer targeted streamed placements for video advertisers around well produced short and long form content. In addition, there are video players supplied with rich syndicated content, such as Roo Media and Brightcove (as well as our own ad supported player). Through such players we have sites where video is the hero. These aren’t traditional text based sites but broadband TV channels. Most are ad funded but some are brand sponsored. They’re the future of online and show the video market growing and maturing.
Video ads will become the key format for brand advertisers online. They’re increasingly attracted to video ads as the online format that uniquely offers the impact and reach of TV. Our experience is that online usage is evolving from lean forward to more laid back due to the browsing of online video. It will never be couch potato but new media specialists will increasingly have to compete against big agency TV departments as the two media converge.
From our market position, Utarget is now seeing a sharp upturn in overall video spend in the UK. Test budgets are rising to £20,000 and more clients are willing to invest by equipping their agencies with creative of appropriate length for online. Expect this to rapidly accelerate. We predict that a large part of TV will be distributed online by 2010.
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