Erick Schonfeld on the State of Online Video

in your opinion is online video going to

in your opinion is online video going to ever catch up to the expectations that

ever catch up to the expectations that

ever catch up to the expectations that VCS had forward an analyst at forth I

VCS had forward an analyst at forth I

VCS had forward an analyst at forth I think that the expectations have been

think that the expectations have been

think that the expectations have been reset I don’t think that yeah at some

reset I don’t think that yeah at some

reset I don’t think that yeah at some point it will reach the expectations but

point it will reach the expectations but

point it will reach the expectations but it’s not going to be any time soon you

it’s not going to be any time soon you

it’s not going to be any time soon you know I just don’t think advertisers are

know I just don’t think advertisers are

know I just don’t think advertisers are willing to pay for it there’s there’s

willing to pay for it there’s there’s

willing to pay for it there’s there’s all these structural issues all these

all these structural issues all these

all these structural issues all these advertisers want to use pre-roll they

advertisers want to use pre-roll they

advertisers want to use pre-roll they claim that that’s where they get the

claim that that’s where they get the

claim that that’s where they get the best return on investment and maybe they

best return on investment and maybe they

best return on investment and maybe they do maybe they don’t and yet you have all

do maybe they don’t and yet you have all

do maybe they don’t and yet you have all these more contextual ads and all these

these more contextual ads and all these

these more contextual ads and all these interesting bugs that go across and and

interesting bugs that go across and and

interesting bugs that go across and and less intrusive ads well the truth is if

less intrusive ads well the truth is if

less intrusive ads well the truth is if it’s less intrusive than it’s easier to

it’s less intrusive than it’s easier to

it’s less intrusive than it’s easier to ignore so that’s why I get those they

ignore so that’s why I get those they

ignore so that’s why I get those they don’t return that much but the pre-roll

don’t return that much but the pre-roll

don’t return that much but the pre-roll ad is just basically taking the

ad is just basically taking the

ad is just basically taking the 30-second commercial model and applying

30-second commercial model and applying

30-second commercial model and applying it to online video it doesn’t take

it to online video it doesn’t take

it to online video it doesn’t take advantage of target ability the all the

advantage of target ability the all the

advantage of target ability the all the data that you have around the video etc

data that you have around the video etc

data that you have around the video etc I don’t think anyone’s really figured

I don’t think anyone’s really figured

I don’t think anyone’s really figured out the advertising component of the

out the advertising component of the

out the advertising component of the video world but once they do there’s

video world but once they do there’s

video world but once they do there’s definitely enough viewership out there

definitely enough viewership out there

definitely enough viewership out there that if you think of it in terms of just

that if you think of it in terms of just

that if you think of it in terms of just inventory there’s no lack of inventory

inventory there’s no lack of inventory

inventory there’s no lack of inventory so if somebody can make those ads

so if somebody can make those ads

so if somebody can make those ads perform you know then I think that’s

perform you know then I think that’s

perform you know then I think that’s what that’s what’s going to be the

what that’s what’s going to be the

what that’s what’s going to be the gating factor length in online video the

gating factor length in online video the

gating factor length in online video the attention span people have is notorious

attention span people have is notorious

attention span people have is notorious in fact I have this sort of SH weekly

in fact I have this sort of SH weekly

in fact I have this sort of SH weekly show I convinced the folks at CNN and

show I convinced the folks at CNN and

show I convinced the folks at CNN and CNN money to give me a crew CNN crew and

CNN money to give me a crew CNN crew and

CNN money to give me a crew CNN crew and we did this in-depth video we’d spend

we did this in-depth video we’d spend

we did this in-depth video we’d spend you know a day in a in a city we had

you know a day in a in a city we had

you know a day in a in a city we had enough footage to do a half hour show

enough footage to do a half hour show

enough footage to do a half hour show easily doesn’t work online but that

easily doesn’t work online but that

easily doesn’t work online but that didn’t work so and they were like this

didn’t work so and they were like this

didn’t work so and they were like this rule the rule was basically they had it

rule the rule was basically they had it

rule the rule was basically they had it down to a science anything over two

down to a science anything over two

down to a science anything over two minutes and 36 seconds the you know

minutes and 36 seconds the you know

minutes and 36 seconds the you know they’ve just measured it but the

they’ve just measured it but the

they’ve just measured it but the viewership just went down so that was

viewership just went down so that was

viewership just went down so that was like our cut off there are three

like our cut off there are three

like our cut off there are three challenges that all online video

challenges that all online video

challenges that all online video producers space the first one is YouTube

producers space the first one is YouTube

producers space the first one is YouTube is the big you know main distribution

is the big you know main distribution

is the big you know main distribution point fifty three percent of videos on

point fifty three percent of videos on

point fifty three percent of videos on YouTube are seeing less than 500 times

YouTube are seeing less than 500 times

YouTube are seeing less than 500 times so already you’re creating you’re

so already you’re creating you’re

so already you’re creating you’re putting all these resources into

putting all these resources into

putting all these resources into creating videos that nobody’s really

creating videos that nobody’s really

creating videos that nobody’s really watching them or average videos are

watching them or average videos are

watching them or average videos are seeing tens of thousands of times why

seeing tens of thousands of times why

seeing tens of thousands of times why because we developed

because we developed

because we developed little you know secret sauce the second

little you know secret sauce the second

little you know secret sauce the second obstacle that people face is that point

obstacle that people face is that point

obstacle that people face is that point here let’s early as shall we call more

here let’s early as shall we call more

here let’s early as shall we call more social networking optimization you know

social networking optimization you know

social networking optimization you know it’s SEO Google doesn’t really even pick

it’s SEO Google doesn’t really even pick

it’s SEO Google doesn’t really even pick up video content that’s why they bought

up video content that’s why they bought

up video content that’s why they bought YouTube okay so the second reality

YouTube okay so the second reality

YouTube okay so the second reality though is that the twenty-five percent

though is that the twenty-five percent

though is that the twenty-five percent of the views in the videos lifetime will

of the views in the videos lifetime will

of the views in the videos lifetime will come in the first four days and then the

come in the first four days and then the

come in the first four days and then the third reality is that most videos are

third reality is that most videos are

third reality is that most videos are usually seen for 30 to 60 seconds you’ve

usually seen for 30 to 60 seconds you’ve

usually seen for 30 to 60 seconds you’ve heard a lot paid content TechCrunch

heard a lot paid content TechCrunch

heard a lot paid content TechCrunch Business Insider all of these great

Business Insider all of these great

Business Insider all of these great great publications are trying to

great publications are trying to

great publications are trying to experiment with videos and they all lose

experiment with videos and they all lose

experiment with videos and they all lose no traction at some point it’s not

no traction at some point it’s not

no traction at some point it’s not because they’re not very skilled and

because they’re not very skilled and

because they’re not very skilled and intelligent and it they don’t prove as

intelligent and it they don’t prove as

intelligent and it they don’t prove as good content it’s because they treat it

good content it’s because they treat it

good content it’s because they treat it as a side thing the truth to it is is if

as a side thing the truth to it is is if

as a side thing the truth to it is is if you’re going to get into video it’s got

you’re going to get into video it’s got

you’re going to get into video it’s got to be its dedicated thing either a

to be its dedicated thing either a

to be its dedicated thing either a dedicated team a dedicated unit but it

dedicated team a dedicated unit but it

dedicated team a dedicated unit but it just can’t be a side thing you guys

just can’t be a side thing you guys

just can’t be a side thing you guys would never scale so that’s why we’re

would never scale so that’s why we’re

would never scale so that’s why we’re doing this because we feel that there is

doing this because we feel that there is

doing this because we feel that there is a benefit in having the long form

a benefit in having the long form

a benefit in having the long form content but then going back and we

content but then going back and we

content but then going back and we cutting it into the short form but I’m

cutting it into the short form but I’m

cutting it into the short form but I’m the one asking a question but we just

the one asking a question but we just

the one asking a question but we just buy you and then scale well who says we

buy you and then scale well who says we

buy you and then scale well who says we wouldn’t be buying you guys I’m just

wouldn’t be buying you guys I’m just

wouldn’t be buying you guys I’m just getting I’m just kidding understanding

getting I’m just kidding understanding

getting I’m just kidding understanding yeah that’s off the record let’s take a

yeah that’s off the record let’s take a

yeah that’s off the record let’s take a short break