Monday, May 17, 2010

Even for Media Companies, Selling Ads Only Ranks 4th in Reasons to Feature Online Video

I have blogged several times about how businesses should think of the online video monetization question -- i.e., contrary to most press, the relevant monetization question is how best to showcase your your goods, your services, your brand and how to better engage with your customers and drive more sales through video, rather than how to monetize your video content itself.

Brightcove and Tubemogul recently issued a research report that confirms this viewpoint EVEN FOR MEDIA COMPANIES! Yes, you heard that right. Even media companies -- whose very business IS content -- only rank ad inventory fourth when asked why they use online video. Increasing customer engagement ranked first (76% of respondents); strengthening their brand, second (60%); increasing site visitors, third (55%); and increasing ad inventory came in a distant fourth (33%).

So while ad serving is an important feature and option for enterprise customers of online video platforms, it is far less important than other features (especially for non-media companies, which represent 90+% of all businesses). In particular, for the enterprise customer, quality online video is of paramount importance, since the quality of your video reflects directly on the quality of your goods, your services, your brand ... and ultimately your business.