Publishers and Advertisers "Grab" Onto Online Video Syndication Models - Janet Stilson

To understand the promise of online video distribution companies one need only look at three trends that have been mushrooming for quite some time First TV viewers are increasingly turning to DVRlike experiences online as they seek to watch quality programming at their own pace That gravitational pull is strengthened by the habits of a maturing Internet generation who are increasingly turning to attractive viewing options like Hulu HBOGo Netflix TVcom and ABCcom and also integrating second screen experiences into their viewing behaviorSecond leading online publishers are sellingout the commercial inventory on their own sites and are building ad networks by syndicating their proprietary content to approved advertiserfriendly sites that reach relevant targeted audiences As these trends gather momentum a third movement has already passed a tipping point Most marketers now realize that it39s impossible to depend on their own micro sites to reach a targeted audience efficiently with their branded content quotThose days are long overquot says Alvin Bowles CEO of Grab Media His company has developed a business model aimed squarely at these three developmentsSince taking the reins at Grab about 18 months ago after executive roles at AOL Viacom and Time Warner Bowles has flipped the company on its proverbial head Online video syndication of professionally produced video content and advertising are frontandcenter in its marketing mission although the company39s core technology underpinnings remain a unique feature Grab syndicates content from professional producers of news and information video content including Martha Stewart the Associated Press Reuters and NBCUniversal It also offers up branded entertainment from advertisers Both forms of content are distributed to Web publishers in need of videos to expand their offerings and serve their audiences39 interests For many of these sites Grab provides the video platform as well as the content they deliverIn addition to enabling publishers to increase their views and available video inventory for their sales networks Grab sells ad avails on much of the content it distributes sharing revenues with the publishers and content creators According to comScore Video Metrix data Grab had nearly 35 million unique viewers during August That39s up from 23 million in April a 52 gain That makes it quotthe fastest growing video property on the Webquot claims BowlesGrab has also won support from some noteworthy agency executives quotGrab has recorded a significant gain in unique viewers over the past year That39s very impressivequot says Greg Kahn EVP and business development director at Optimedia quotThere39s value to what they39re doing Grab is reaching viewers where and when they39re watching online videoGrab is not the only player in the online video syndication space Among its closest competitors is AOL On Network formerly 5 Min which aggregates both original and syndicated content in the news lifestyle and entertainment categories There39s also the News Distribution Network NDN which focuses on news the teenfocused Alloy episodicoriented Bliptv and DBGtvHowever Grab distinguishes itself through the use of the metadata technology that is at the core of the company quotWe39re leveraging data and technology to determine which content should be placed where amp8211 and what advertising adjacencies are most appropriate for that content streamquot Bowles explains The specificity of metadata is key to finding the most appropriate clients for the vast amount of programming in Grab39s archives It has around 200 different content suppliers And at any one time there are 800000 to 900000 pieces of content available for use Advertisers typically pay only for views and the Grab platform appears almost exclusively in quotabove the foldquot positions on partner websitesquotThe goal for us is to ensure that editors of midtail sites who are focused on passion points amp8211 like bestmomcom amp8211 can grab content based on their editorial voice We try to add contextual relevancequot Bowles says By closely matching the right content to the right site Grab is able to provide advertisers with quotclickthrough and viewthrough rates that are higher than what you would expect from industry standardsquot says Bowles quotGrab certainly has made some important progress but it has challenges as well Kahn explains quotThere are a number of competitors in the space But Grab did relatively well in the NewfrontUpfront period and it39s something we39re taking a look at for our clientsquot Bowles says that during the Newfront earlier this year Grab raked in some sevenfigure deals with agencies All told its total business was in the eightfigure arena garnering three to four times more revenue during the 3912 Newfront compared with Newfront 2011Despite that notable success Bowles says he had hoped that the Newfront would drive better CPM and volume growth for the digital video industry overall quotWhat we saw was media companies bundling video inventory from a multiplatform perspective along with their traditional media There wasn39t as large a shift into the online video ecosystem as many expected but it39s clearly a growing priority for marketers and their agenciesquot Bowles says quotGrab is a little further down on the daisy chain than we should be given our size But agency and advertiser executives we39re speaking with are saying 39Yes I want to spend more on online video but I39m not sure how much of an Upfront commitment I can make39quotBowles believes there39s a fair amount of education that still needs to take place among agencies and clients and the responsibility falls on Grab and its competitors quotBut it would also be really helpful if comScore and Nielsen would educate agencies and advertisers with a score card around this ecosystem to which everybody can subscribequot Bowles says It all boils down to figuring out what metric is the best yardstick for measuring success Is it impressions clickthrough rates or something else Agency executives have differing opinions about what39s optimal To have a measure for online video viewing that is as definitive as Nielsen ratings are for the TV space would better define the buying and selling process for Web video Bowles believesJack Myers serves as a member of the board of directors of Grab Media Janet Stilson independently researched and wrote this articleIf you are receiving this report you are a registered subscriber to Jack Myers Media Business Report or are receiving it as part of a registered corporate subscription As a subscriber Jack responds personally to your emails requests and comments He is available to speak at your company events In addition to Jack Myers Media Business Reports your subscription underwrites MediaBizBloggerscom Women in Media Mentoring Initiative Jack Myers Wall St Report Jack Myers Video Media Report plus our exclusive industry economic forecasts trend forecasts and corporate performance research Redistribution in any form except among approved individuals within your company is prohibited As a subscriber you have full access to all archives and reports at wwwjackmyerscom If you require your ID and password contact maryannjackmyerscom

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Publishers and Advertisers "Grab" Onto Online Video Syndication Models - Janet Stilson

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