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The Year of The Video Dragon...
by Allen T on February 16th, 2012

2012: The Year Of The (Video) Dragon

I recently attended a Goldman Sachs event. A member of their team took the stage to speak about many different factors affecting our economy, and said 2012 would be a year of prosperity. I agree -- especially when it comes to online video.

I’ll explain. There were times, very recently, when things like iPad apps, or social media, (whatever that really means) took precedence over video. Other times, publishers “were not really monetizing video” yet because Tremor was yet to be around. When 5min’s syndication was yet to be available. When WatchMojo CEO was yet to educate the market about video production. When there were only CPC, CPM and CPA -- not CPV. Times before Brightcove had the “Play” annual event with 500 attendees. Before Louis CK published his show on the Internet only. Before Adap.tv introduced an RTB platform for video. Before Youtube generated a billion dollar in revenue through its YPV program. Before Netflix changed its pricing model to encourage online video streaming and took a mega-dive in price per share, and before people admitted that video was somewhat desired -- but less obvious. Yes.

If you are involved in the video space, then you know what I’m talking about. Video was cool but it was not “it” just yet. However, 2012 has arrived, and now video is becoming “it” -- yes!

Publishers realize that it’s time to double down on video -- and for a reason. Video monetizes better than anything else: advertisers come for your video inventory and stay for the rest. Premium publishers claim $30-$50 in video pre-roll revenue -- mind you, that is 8x-10x the range over display advertising. So I already see Directors of Video being hired by companies, and I see events that are all around video, and I see competition around video that indicates the beginning of the space’s maturity. I see big companies hire consultants to advise their board on how to build a video strategy. I see video is becoming real.

I feel 2012 is the year of video -- mainly because it is now monetized. Real traffic of video views now means real and superior revenue. Being a top publisher without a real video strategy or millions of video views is irresponsible.

For the Chinese, the Year of the Dragon happens only every 12 years, and it means the luckiest year of all. Interestingly enough, 2012 happens to be the Year of the Dragon. If you are now in the video space, you’re in the right place, since this is the Year of the (Video) Dragon. Good luck! by Adam Singolda

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