Video is quickly becoming one of the most transformative areas in digital tech & media. It’s right up there with mobile and social media. In fact, its quickly colliding with both of those areas as underlying mobile technology and social behavior compel new formats like Vine and Instagram Video.

That’s just the tip of the iceberg. How are video business models forming? How are the traditional owners of video production and distribution evolving in such a quickly changing environment? And what does it mean for local video and other important areas like video ad sales?

BIA/Kelsey analyst and Managing Director Rick Ducey is tracking these areas pretty closely and I recently got the chance to pick his brain on a few topics. One theme that seemed to thread throughout these sub-topics is video’s tipping point: Where and when will it happen? The Q&A with Ducey is below.

Q: How is the macro environment changing for video consumption patterns, and what does that mean for those in the business of delivering and monetizing video?

A: The TV Everywhere authentication model used by cable operators is a bit clunky in terms of the user experience but it has value. Netflix is teaching us the “binge viewing” paradigm of releasing an original series all at once. Letting viewers connect to “their” content on various devices and networks is huge. But we need better content discovery across platforms like linear television, VOD, DVR, Internet, and OTT services like Netflix and Hulu. A seamless and powerful interface with a solid business model can drive a lot of change fast. Everybody from Intel, Google, Apple, Tivo, cable MSOs to Amazon and others have their toes in this water.

Q: Mobile technology and behavior is also creating a multi-screen world. What challenges does mobile present for video delivery and monetization?

A: As consumers adopt multi-screen behaviors, programmers and advertisers will follow. For example, ESPN research shows viewers consume ESPN content across an average of four screens. The tipping point will come with the ability to plan, execute and attribute ROI across screens. This involves the transactional platforms that brands and video publishers use; measurement and reporting systems; optimized creative for different screens; and the complementary effect of cross-screen campaigns (we know that broadcast plus mobile video campaigns drive more lift). And it’s not just screens, mobile is such a killer in this category in terms of growth potential, it gets to measuring and attributing user targeting and behavior inside mobile apps since that’s where a lot of traction and engagement occurs.

Q: Drilling down to local, What are some of the ways that Local Television is adapting to today’s changing video environment?

A: Most video advertising is on broadcast television. National spot advertising is sold on Cost Per Point compared to the rest of the video world that is sold on a CPM basis. It’s sort of geeky, but it will be a potential large tipping point if spot TV converts to selling on CPM basis as it reduces a lot of friction in the buying process. We’re doing research on this point for the Television Bureau of Advertising. Of course local television is quite well monetized but another tipping point will come through driving more video monetization in other channels including desktop, tablet and mobile. Most video consumption is still plain old fashioned linear television.

Q: So how does all of this impact the entrenched ways that video ads are bought and sold?

A: Yes, interrelated to all of this is the way video is bought and sold. Often at agencies there are separate video and digital planning and buying teams. Same on the video side. When buying and selling is oriented to video — as a content type with different affinities and values on different screens — and that’s all plugged into pricing and attribution big data algorithms, we’re off and running.

The post Where is Video’s Tipping Point?: A Conversation With BIA/Kelsey’s Rick Ducey appeared first on BIA/Kelsey - Local Media Watch.

Video is quickly becoming one of the most transformative areas in digital tech & media. It’s right up there with mobile and social media. In fact, its quickly colliding with both of those areas as underlying mobile technology and social behavior compel new formats like Vine and Instagram Video.

That’s just the tip of the iceberg. How are video business models forming? How are the traditional owners of video production and distribution evolving in such a quickly changing environment? And what does it mean for local video and other important areas like video ad sales?

BIA/Kelsey analyst and Managing Director Rick Ducey is tracking these areas pretty closely and I recently got the chance to pick his brain on a few topics. One theme that seemed to thread throughout these sub-topics is video’s tipping point: Where and when will it happen? The Q&A with Ducey is below.

Q: How is the macro environment changing for video consumption patterns, and what does that mean for those in the business of delivering and monetizing video?

A: The TV Everywhere authentication model used by cable operators is a bit clunky in terms of the user experience but it has value. Netflix is teaching us the “binge viewing” paradigm of releasing an original series all at once. Letting viewers connect to “their” content on various devices and networks is huge. But we need better content discovery across platforms like linear television, VOD, DVR, Internet, and OTT services like Netflix and Hulu. A seamless and powerful interface with a solid business model can drive a lot of change fast. Everybody from Intel, Google, Apple, Tivo, cable MSOs to Amazon and others have their toes in this water.

Q: Mobile technology and behavior is also creating a multi-screen world. What challenges does mobile present for video delivery and monetization?

A: As consumers adopt multi-screen behaviors, programmers and advertisers will follow. For example, ESPN research shows viewers consume ESPN content across an average of four screens. The tipping point will come with the ability to plan, execute and attribute ROI across screens. This involves the transactional platforms that brands and video publishers use; measurement and reporting systems; optimized creative for different screens; and the complementary effect of cross-screen campaigns (we know that broadcast plus mobile video campaigns drive more lift). And it’s not just screens, mobile is such a killer in this category in terms of growth potential, it gets to measuring and attributing user targeting and behavior inside mobile apps since that’s where a lot of traction and engagement occurs.

Q: Drilling down to local, What are some of the ways that Local Television is adapting to today’s changing video environment?

A: Most video advertising is on broadcast television. National spot advertising is sold on Cost Per Point compared to the rest of the video world that is sold on a CPM basis. It’s sort of geeky, but it will be a potential large tipping point if spot TV converts to selling on CPM basis as it reduces a lot of friction in the buying process. We’re doing research on this point for the Television Bureau of Advertising. Of course local television is quite well monetized but another tipping point will come through driving more video monetization in other channels including desktop, tablet and mobile. Most video consumption is still plain old fashioned linear television.

Q: So how does all of this impact the entrenched ways that video ads are bought and sold?

A: Yes, interrelated to all of this is the way video is bought and sold. Often at agencies there are separate video and digital planning and buying teams. Same on the video side. When buying and selling is oriented to video — as a content type with different affinities and values on different screens — and that’s all plugged into pricing and attribution big data algorithms, we’re off and running.

The post Where is Video's Tipping Point?: A Conversation With BIA/Kelsey's Rick Ducey appeared first on BIA/Kelsey - Local Media Watch.

The small-business market is always attractive to vendors in terms of volume, but many give up in frustration because of its fragmentation, low margins and high-service needs (and churn). Many of these vendors typically seek to move up the value chain to medium- and large-sized businesses. With these, they get both larger contracts and more security.

Among these vendors is Seattle-based Mixpo, the online video specialists that track video effectiveness and embed actionable information, such as click-to-call and e-mail buttons.

The 30-person company started three-and-a-half years ago with the idea that many SMBs would use online video as a new channel for advertising. But the company is now squarely focused on working with larger companies that basically want to extend their existing TV advertising.

“There is a fundamental reason to move up-market — it is so simple to put ads together and easily customize campaigns for creative versioning,” says CEO Anupam Gupta. An auto manufacturer, for instance, could quickly create local versions for 2,000 dealerships. “They can promote their sale next weekend,” says Gupta.

Gupta adds that “we’ve learned that customer segmentation is really, really important. The common base is TV ads. But we [use online to] get people to engage; to do things they can’t do with TV,” such as order brochures or click to call.

Mixpo has not only focused more on larger advertisers, but it has also started working closely with agencies and marketers, in addition to media partners such as Comcast and Belo Interactive, which remain an active channel. “It is strategic for us to expand into the demand side,” says Gupta, who notes that more than half of Mixpo’s revenues now come from agencies.

In talking with agencies, Mixpo focuses on how to use video to drive awareness and create more engaged users. “You can use it all the way down to a direct response campaign,” he says. “That’s not SMB.”

Hot categories for Mixpo currently include automotive, political and entertainment. “Political is huge,” says Gupta. “They get video. There is lots of advocacy work.” On its site, Mixpo shows success stories for tea party candidates such as Sen. Scott Brown (R-MA) and Rep. Michele Bachman (R-MN).

Entertainment mostly consists of “tune in” advertising promotion TV shows. A number of local TV stations and cable franchises are utilizing Mixpo services for their Web sites. “They can change the content very rapidly based on day of the week, time of day or whatever audience they are in front of,” he says.

Ultimately, Gupta says the most successful Mixpo campaigns are run by those that have video assets (especially TV); a time sensitive element (i.e., political campaigns); or some interactive needs with their advertising (i.e., coupons).

The transition to an agency-focused approach has also changed the competitive parameters for Mixpo. Previously, when it was focused on SMBs, it competed largely with companies such as TurnHere and Jivox — both of which still report strong results in their sectors, and have evolved their own strategies. But now Gupta feels that the company competes mostly against companies doing rich media campaigns, such as is EyeWonder and Pointroll. It also competes against companies engaged in dynamic ads, such as Tumri.

The post Mixpo Refocuses on TV-Ad Based Marketers appeared first on BIA/Kelsey - Local Media Watch.

Two freshly released viewer surveys underscore the fragmentation of the TV marketplace, the surging demand for online video and time shifting, and the changing consumer attitudes toward traditional, live television. 

The most recent Morpace Omnibus study reveals that while 52 percent of viewing is live (linear broadcasting, whether prerecorded such as a TV series or movies, or actual live programming like sports and news), more than a third (36 percent) of viewing is now on-demand. In addition to VOD services, 41 percent of consumers use in-home or network DVRs for additional “on-demand,” non-linear viewing.

Meanwhile, the migration online continues, with results from an Altman Vilandria & Co. survey declaring that broadcast TV consumption on the Internet doubled over the past year.

Read the rest of the post here.

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