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Online Video: Q2 Tells All

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Lionseye insights from AC Lion

Article By: Joshua Russak (

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At AC Lion, having “Online Video” as an Industry Coverage requirement makes life at work that much sweeter. From browsing YouTube to Hulu, MetaCafe to Break, and all the rest I can get my hands on, I find myself intrigued by how much effort it takes to monetize the video content. Up until, companies likes Adotube, Blinkx, and Youtube have been attempting to solve this problem individually.

But I have a feeling, according to everything I have seen, the process of video-monetization is going to undergo a drastic change:
According to ComScore, Internet users in the U.S. watched 11.5 billion online videos in March 2008, up 13% over February 2008 and 64% year-over-year.
So how do we properly approach the monetization of these overwhelming statistics? Simple – As was done in the past with Banner Ads, the Interactive Advertising Bureau (IAB) is working to establish an ad-delivery “standard” within online video content. The only hesitation I have is towards the future of MOBILE ONLINE VIDEOS. It’s a completely separate format, yet an approaching monster that, with the launch of 3G networks and the iPhone, is increasingly growing popular. Monetizing mobile video content will require an entirely separate approach (though I have my money on Android solving this problem first – but don’t quote me on that).
And do add to the rush for standardization, a lot will depend on the Domestic-Prime-Time viewers Q2 results. Let me explain why…
Well, we know that the percentage of viewers of domestic prime-time programming declined overall in Q1. BUT, a lot of that may have to do with the WGA strikes. Q2 will truly tell how quickly viewers are declining. Yes, I am openly admitting, there is no hope for Prime-Time, Organized, Commercial Filled, Time-Bound Programming. My next biggest fear is the internet adopting TV habits and soon, every video will have a :15 – :60 second commercial. Where will we turn to next once these ads are forced down our throats? We can only hope and pray the IAB chooses a wise standard while, at the same time, allows for continuous growth in the monetization of Online Video.
…It’s time to run…I have to head home and make sure my DVR is recording all my favorite shows. Otherwise, I’m stuck with reruns of Doogie Howser on Hulu!