Online video, reader engagement and revenue

December 9, 2008

Two recent posts about online video, a subject of profound interest to us here at the Roundup for obvious reasons:

At Eat Sleep Publish, Jason Preston wrote about a recent study conducted by Forrester called “Watching the Web: How Online Video Engages Audiences” and possible parallels within the publishing industry:

…[F]or the purposes of the study, one hour per week is the gateway to being an “engaged viewer.” And the difference between an engaged viewer and a non-engaged viewer is dramatic.

Engaged viewers, first of all, make up about 40% of all online video customers, and are responsible almost 75% of all web video consumption. These viewers are also twice as likely to recall in-video, pre-roll, and post-roll ads than non-engaged viewers.

…But I’m willing to bet that the statistics on ad effectiveness apply towards other mediums as well. An engaged reader will probably remember a print ad more often than random passers by.

Zachary Seward at Nieman Journalism Lab also wrote about online video; specifically how the use of video at the popular Talking Points Memo blog has helped to spur the site’s growth:

I’m focusing on TPM’s business model in this post and one last Tuesday because I think their steady growth from blogger-with-a-day-job to a profitable, 14-person news organization could have broader implications for journalism on the Internet. TPM Media LLC is a rare news company whose entire business has grown up around the web economy. The site has also found success with online video in ways that outstrip most newspaper sites.