We've been saying for a while now -- based on the evidence we've seen in certain European markets -- that online video viewers are happy to watch a significant number of in-stream ads in exchange for access to high-quality content. Today, we found yet more evidence of the same from a study conducted by Turner Broadcasting. Today, many of Turner's TV shows only run two or three in-stream ads each (generally less than 2 minutes of advertising per episode); but the broadcaster found that if it increased the ad load to the same volumes the shows feature on TV (as much as 20 minutes per episode) the number of users who dropped off was shockingly low. The CW network found the same in its own tests.
The bottom line: Get ready for more online video ads. Inventory will grow, prices will fall (at least somewhat), and overall online video ad spending will grow dramatically.
(As a side note, The New York Times' article in which this research is published takes aim at Hulu for hoping to "lighten up" the amount of advertising users see and repeats Hulu's accurate claim that it has less than half as much advertising as the same shows on TV -- which is ironic, given that in my anecdotal experience Hulu has been more aggressive than any other US online video site in pushing more ads into its content; most of the ad breaks I see on Hulu these days contain two ads.)
Groundswell technology comes to consumers first. At home, we get social, mobile, video, and cloud services pitched to us 24x7. Facebook, Android, iPad, Foursquare, Google, YouTube, Office Web Apps, Twitter. The list is endless and growing every single day. Empowering technologies like these will always come to consumers first. Why? Because it's a wide-open market. A single developer can build an application that changes the world from their broadband-connected bedroom.
All this technology puts tremendous power directly into the hands of your customers. Your customers often have more information than your sales team — or medical staff — does. They can also whack your brand from their smartphone, with video even, while waiting impatiently in line. They can get a recommendation from someone in their business network while listening to your pitch. Customers are empowered by information and connections. You'd better make sure you give customers better information than they can get elsewhere.
The only way to do that is to empower your employees to directly engage the needs and expectations of empowered customers. Only empowered employees can solve the problems of empowered customers.
Fortunately, your employees are not standing still. People are problem solvers. Left alone, your innovative employees (we call them HEROes — highly empowered and resourceful operatives) are building new solutions using these same groundswell technologies — and many others besides — to solve customer problems.
In fact, 37% of US information workers — employees that use computers for work — use do-it-yourself technology to get work done. Personal mobile devices. Unsanctioned Web sites like Skype or Google Docs or LinkedIn or Smartsheet.com. Unsanctioned software downloaded to a work computer.
[Scroll down to view Forrester’s "The Evolution Of Green IT" video… don’t worry, it’s only ~6 minutes.]
As a quick recap, part one of this video series walked through how corporations and governments are using green strategies to achieve their financial and political ends. From there, I gave a handful of examples around how green IT is helping leading organizations — like Sprint, AT&T, and Tesco — save $20m, $12m, and achieve a 17% reduction in fuel consumption, respectively.
So what can you expect in part two? In ~6:00 minutes, part two of this video series will discuss green IT's quickly expanding scope and approach. What do I mean by this? In short, green IT's scope is evolving beyond the data center into distributed IT and broader business operations. Forrester calls this the green IT 1.0 ("green for IT") and 2.0 ("IT for green") transition. Likewise, the approach to green IT is expanding beyond procuring more energy efficient equipment to also include software, services, people, and process. And the savings from these new approaches are impressive:
[Scroll down to view Forrester’s “The Evolution Of Green IT” video… don’t worry, it’s only 3:30 minutes.]
At Forrester, we’re always exploring new ways to connect with our clients and fit into their busy schedules. And as an analyst on Forrester’s IT Infrastructure & Operations (I&O) research team, I’m well aware of how time-pressed our clients can be. The I&O professional is oftentimes characterized as the “fire fighter” of the IT organization, dropping everything at any hour of the day to ensure their business’s critical IT infrastructure – from servers to PCs to mobile devices – is running without a hitch… and on-time and on-budget.
With that said, I’m particularly interested in “testing” out video to supplement my published research and my blogs on the Forrester.com website. To that end, below is part one of a two part video series on “The Evolution Of Green IT” – a topic I am increasingly receiving client inquiries on as organizations try to determine their green IT maturity and future trajectory.
Earlier this month, Corey Kronengold at Online Video Watch was complaining about the in-stream ad load at MLB.tv. But unfortunately for Corey – and for the other two-thirds of US Internet users who now watch online video – the ad load seems likely to get heavier rather than lighter.
In the fourth quarter of 2009, my team and I spent at least 30 minutes watching video on each of 84 leading sites in the US and Europe to better understand how marketers and sites are deploying online video ads – an exercise I’ve conducted each of the past three years. What did we find? Advertising, and a lot of it. In fact, 85% of US web sites and 64% of European sites now accept in-stream ads. And we saw more advertising per online video hour than ever before.
Throughout, as various members of the press have mused about the death of Amazon's Kindle, I feel compelled to point out that, contrary to popular belief, Amazon is in a better position now than it was before the iPad. That's right, if Amazon comes out swinging, Round 2 will go to Amazon. Here’s why:
You may not know the name Michael Greene, but if you're a Forrester client or you read this blog regularly then you've certainly seen his work. As a researcher on our team, Michael produces some great research -- most notably on the topics of sponsorships and video advertising. Below, Michael shares his thoughts on one of our latest research topics, sourcing video creative:
Granted, the economy is clearly taking its toll on in-stream ad prices. And big budgets always earn marketers volume discounts. But when you realize that even in this market most high-quality pre-roll inventory costs upwards of $30 per thousand, the prices Reckitt paid look incredibly low.