HOW TO: Monetize Your Site With Video

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I believe 2009 will be the year where video-over-IP really breaks from the niche to the mainstream, but let’s be honest: technology for technology’s sake is not the end goal. If you are a tech entrepreneur or a marketing executive, you use technology as a tool to achieve communication or financial goals. Knowing how to take advantage of online video technology is crucial to generating great returns on your content or marketing spend.

For both startups and Fortune 100 companies, getting on board with online and mobile video is increasingly key to attracting and engaging a fickle audience. The next generation of big-time consumers (those under 18) are already more likely to be watching video on a computer or mobile phone than they are on a traditional television set.

If you are new to this space, here are a few pointers to help you avoid the pitfalls:

1. Choosing an IPTV provider

While good technology alone will not guarantee success, a poor technology decision can ensure failure. On the surface, there are many IPTV providers out there with seemingly similar features. Look beneath the hood. Some elements to consider in choosing a solutions provider:

• Ingestion – how will the content (that you produce, you license, or your audience creates) get into the system?

• Management – once ingested, how will you organize the content and categorize it into channels for your audience to easily select and view?

• Syndication – how will you acquire and deliver third-party content to your site (through a video player) and how will you deliver your own (or your audience’s self-created “UGC”) content to third-party sites?

• Monetization – does the system support all major ad-supported models, pay-per-view and subscription, and how is integration with third-party ad-serving networks going to work?

• Marketing and search – will the provider make sure your content is properly indexed to optimize user experience and make it easy to find your content on your own site, on third-party sites to which you syndicate, and in search engines?

• Device “agnosticism” – does your provider allow for your IP-based video destination to be easily accessible through a different device - viz., computer browsers, mobile phone interfaces, IP-enabled TV sets and gameboxes?

• International protocols/localization – does your provider have experience in getting video content out in different networks environments and protocols globally, including language and interface localization?

Most importantly though, is making sure any provider you work with has proven themselves at scale; has real enterprise clients who are enjoying the service; and has clearly demonstrated they can grow with your success, i.e. as your community grows, as you go from browser to mobile network distribution, as you expand internationally, etc.

2. Before looking for advertisers…

Know, engage, and interact with your audience. Understanding exactly who you are targeting with your video content and what their needs are in terms of information or entertainment will help you make a compelling proposition to potential advertisers and ultimately sell ads, especially if you cover a niche topic.

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Deliver content consistently. You certainly do not have to produce content at the same rate as Gary Vaynerchuk, but there should be a predictable pattern to retain and grow your audience. If you prefer to syndicate content from third parties, make sure that you are vigilant in selecting relevant content, and sign up for long-term deals, so your audience doesn’t find that you dropped their favorite video content from your site.

By the same token, the key to deploying a successful user-generated platform, or “semi-professional” content uploading strategy, is to keep your filtering and editing standards consistent and clear.

3. Return on video

Video provides a number of ways to generate revenue from your content:

1. Branded, or “sponsored” sites allow online and mobile portals to marry their video players with well-known brands, to immerse the customer in a branded experience without detracting from the in-player viewing experience. In other words, it promotes exposure to a brand without interrupting the underlying programming, something highly uncommon in the traditional TV world.

- You are probably asking, “How do I attract sponsors?”

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- Do not be afraid to cold call. Are you serving trendy travel videos? Get in touch with Timbuk2 and Crumpler Bags. Both are veterans in online outreach and if your viewership is great, they will surely give you a shot. After that, you will have leverage to attract the Tumis and Delseys of the world.

2. “In-video” advertising is the fastest growing area of online advertising. Online and mobile video advertisers have more options than ever to engage users: TV-style pre roll ads, Flash overlays, and now (thanks to companies like TicTacTi) interactive layers that allow targeted ads to be placed in videos dynamically.

- Once again, being a great content producer is not enough; being great with a following is what counts. Once you have the numbers, integrating into an ad network will allow advertisers to bid for the views you generate. There are many options for ad networks out there, be it Google or competitors. The correct ad network choice is a topic in itself that I would love to discuss with you at a later time.

Whether you are using branded sites, banner ads, or in-video advertising, the gist is that video provides a range of options that can be customized to meet communications needs or user habits.

Video is a rapidly growing space. I think this year will see hockey-stick growth in IPTV for several reasons. Broadband Internet and 3G mobile networks are expanding rapidly around the world, especially in emerging markets like China, India, Latin America, and the Middle East. Internet–enabled TV sets and video-oriented mobile phones are improving functionality. And people of all ages are becoming familiar with the panoply of self-determined entertainment available to them in the IP-based world.

Don’t find yourself playing catch-up in the IPTV revolution. Whether you produce video content yourself, have an interest in syndicating third party content, or want to build a community of user-generated video, get onboard building your video interface today.

Feel free to get in touch. I would love to hear from you as you navigate the process.