Listening To Videos: New Video Ad Targeting

Targeting relevant ads through streaming media (video) has been a focal point of innovation for many startups over the past few years. There is good reason for this. If ads are made more relevant to consumers conversion rates will increase, driving down acquisition costs. Lower acquisition costs attract more advertising dollars and increase willingness to pay for CPMs. This in turn makes the auction for advertising space more intense, driving up prices and making both publishers and advertiser networks wealthier. The bottom-line is that better targeting will increase revenues for Internet companies.

To date, the methods of targeting ads through streaming media remains less effective than the methods used for textual advertising. This is because video is much more difficult for a computer to interpret than text. Computers can't currently decipher the conent video clips on a large scale (millions of files). As a result, several work-arounds had been created. One such strategy was to target video ads based upon the focus of the webpage. For example, ads about cat food might be shown on a pet site. But do dog-lovers that are watching a video about a dog want to hear about cat food? Further, what happens when Purina's ad shows up before some inappropriate video that a user uploaded as a prank?

However before you lose too much sleep, you should know that there appear to be some solutions in the making. The WSJ reported last week in an article titled Surfing the Internet for Spoken Words (The WSJ link doesn't work w/o a subscription) that several companies are developing technologies that will use speech recognition to evaluate video content and determine if it is both appropriate and relevant for an advertisement. If this technology is successful it could serve as a tremendous competitive advantage to advertisers networks.

If it works well, I would assume that these companies will be purchased by some of the big boys. Will YouTube be one such buyer? They could become the google for video - the largest publisher and ad network in one...

Dogs & The Long Tail

I recently saw this post on PaidContent about Dogster, Inc., the company behind Dogster and Catster, raising $1 million in funding. Dogster and Catster are social networks for dog and cat owners/lovers who create profiles for their pets, complete with photos, facts, stories, diaries, etc.. In the last two years, they have grown to join the top 5 pet desinations on the web and make a good deal of their revenue from pet-related advertising. I think they are a perfect example of The Long Tail in action. Furthermore, they show that there are plenty of opportunities out there for Long Tail and niche markets on the web, particularly when it comes to social networking.

I remember something Jason Calacanis, co-founder of Weblogs, Inc., said at a conference I attended last year about The Long Tail and his company (alongside The Long Tail author Chris Anderson on the panel). He talked about how Weblogs owns over 50 blogs ranging over a variety of topics from general electronics & gadgets on Engadget to more specific topics such as HD on HD Beat. He explained that despite the fact that the long tail blogs such as HD Beat may not make any money for the company, they feed content up to the head of the tail, popular blogs such as Engadget, and in that sense add great value for the company. Whereas HD Beat will feature many articles on HD exclusively, Engadget may only feature one or two, but that they will be sourced from HD Beat.

On that note, allow me to present to you Day of the Longtail. This is my favorite video on The Long Tail.. actually it's the only video I've ever seen about The Long Tail.

Social Networks for Travel

With the recent popularity of social networking sites such as myspace.com, the travel industry has jumped on the bandwagon with some travel-centered, user created websites. These sites allow users to share experiences with other members that may help people with their choice of travel destinations, hotels, restaurants and other items associated with taking a vacation. This differs from many of the existing travel sites which just attempt to sell you items.

As a result, existing sites such as Yahoo's Trip Planner have added social networking features in order to encourage customers to stay on their site.

This is an interesting development and it seems to be a natural progression as people want to hear first hand about travel experiences rather than cookie cutter pictures posted by the resorts themselves.

Some of the more recent social networking travel sites are:
http://www.tripmates.com
http://www.gusto.com
http://realtravel.com
http://www.igougo.com
http://www.tripadvisor.com

A better real estate website

In my hunt for an apartment, I found a website, streeteasy.com that seems to be web 2.0. It searches all real estate listings in New York. It has the typical search criteria that most websites have (e.g., price, general neighborhoods, open houses etc.) What makes this site different (from what I can tell so far) is the following:

• You can search both sales and rentals by neighborhood, price range and size
• You can narrow down a search to a particular school district or building style
• They list all reductions in prices. For example, if an apartment had been listed for a week for $1,000,000 and the broker brought down the price to $800,000. Typically, unless you followed the apartment on that site, you would not know of the magnitude of the price reduction (or if the reduction happened at all). On this site, it will say: reduced by $200,000.
• You can type in an exact building address and all listings in that building - including "recent past" availabilities are shown. This is great because you can see how much an apartment was sold in a specific building per square foot. While I'm not sure if the pricing is 100% accurate (some co-ops are impossible to get data on), it is a helpful starting point in a real estate search.

Check it out: www.streeteasy.com

Information on Web 2.0

To further the discussion of what is Web 2.0, seems there is a conference in San Fran this November where the big players of the industry will discuss this very topic. They will discuss how the web has transformed the industry and how companies are changing their business models to take advantage of this platform. Some great speakers and events...will be interesting to see what emerges.

http://web2con.com/

Informed?

When searching online, I almost always go to Google. But I recently discovered a new company called Inform.com which is changing my habits. Inform.com is not only a news aggregator which can search about topics and pull up all articles online (from any source), it pulls a list of articles by relevance on how the content was used. Plus, you can make your own searches so whenever there is an article in any media source, it comes up. I used this site a lot while at work, because if anything came up that had to do with my industry or competitors, it was easy to keep up to date. I found it to be a much better solution then Google searches or updates.

Recently, Inform announced that it was switching gears and offering a new B to B service for all different websites. For example, within an article on any news site a name/place/subject that appears can be linked to a list of all other places (articles) it is mentioned on the site. This works to increase page views, encourages users to stay on the site, which overall is a better deal for advertisers. Inform is also offering content related advertising for its clients. For example, if you were reading an article about online dating, ads for meetmoi.com would appear. This is much more targeted ad strategy and some claim an attempt to battle the traditional Google ad search by making the process more cost effective and less risky.

Check it out.

http://www.inform.com/

http://www.forbes.com/digitalentertainment/2006/07/29/google-newspapers-search_cx_lh_0730newspaper.html

What is Web 2.0?

After much discussion in class about what is and what is not web 2.0, there is a site now that catalogues web 2.0 sites with links and a short description.

http://www.go2web20.net/

This site lists most of the usual suspects such as flickr, digg and facebook. But there are some other sites that are questionable in their true web 2.0 designation. For instance, Amazon.com is listed as a web 2.0 site but is online shopping really web 2.0? Perhaps, with the new additions they have made connecting users and building a review base. Also, Skype is listed as Web 2.0 but I recall in class this did not pass the web 2.0 litmus test.

Some sites seem quite useful (Lulu - online publishing) while others seem to be out of my realm of needs (IMVU - 3D instant messaging). Some are mysterious (Chuquet - tag line: Chuquet listens for the buzz) to the very straightforward (mailbigfile.com, I hope this is self explanatory).

After looking at most of the sites one can only come to one conclusion. The author of this site must have taken this class last year and is still trying to figure out what web 2.0 is.

China's Google

Thought this article, taken from the Sunday New York Time's business section, was very relevant to the discussion of search capabilities from last class (and several of the other posts on Google vs. Yahoo's search capabilities).

http://www.nytimes.com/2006/09/17/business/yourmoney/17baidu.html?pagewanted=1&ref=business

This article provides an overview of baidu.com, which is China's #1 search website. This is notable because China is the only country where neither Yahoo nor Google has a #1 position in the search marketplace. Baidu.com is the #4th most trafficked website in the world. This is particularly impressive given that the Chinese government regularly censors website content.

Baidu was started by Robin Li in 1999, at which time he was working for Infoseek and frustrated by Disney's commitment to search capabilities. Then, in September 2001, Baidu started its own search website, baidu.com. Baidu allowed advertisers to bid for space, even in advance of Google, and allowed customers to pay by clickthrough rate.

The article mentions that Baidu caters to a different audience than Western Internet companies because the Chinese are far more interested in entertainment than news, books or car rental rates. “The fact is 70 percent of China’s Internet users are under the age of 30,” says Richard Ji, an analyst with Morgan Stanley. “Most of them are single, only children. They’re looking for entertainment.”

Hi. What do you own? Zebo.com

Zebo.com is myspace with a twist. Members create myspace-like profiles, but the focus of the profile is a list of all the things you own. You can even search to see who owns the same things you do. The site officially launched just last Tuesday, but it looks like its taking off - with posts from young people all around the world. Since its private beta test in January, the site has acquired over 4 million members.

Most of zebo.com's members are between the ages of 18 and 25 making this a website a haven of information for marketers - allowing them to observe the likes, dislikes and trends among a highly desirable demographic. Social pressures to seem "cool" among their peers may encourage users to exaggerate and provide inaccurate listings of what they truly own. Still, even if the listings aren't accurate, the site provides intresting insight into their desires.

On a side note, you have to wonder what kind of message it sends to young people when the entire purpose of the website is touting all the material possessions you own?

http://www.nytimes.com/2006/09/17/fashion/17zebo.html

A Little Class on the Internet

A Little Class on the Internet

This article from the New York Sunday Times describes the online video/movie market and how it's "clearly shaping up to be an actual business that advertisers are interested in." According the to article, the research firm eMarketer estimates that video-related advertising will top $2.3 billion within four years.

http://www.nytimes.com/2006/09/17/business/yourmoney/17frenzy.html?th&emc=th

Massive advertising in online video games

Massive Incorporated recently launched a really cool network to allow for dynamic, real-time placement of ads in online video games. Not only that, but they can track what ads you see, how long you see them, your emotional response, heart rate, shoe size, etc. (Well not all of those, but you get the point.)

So as you drive down the street in some racing game, you may just happen to pass a billboard telling you to go see "Jackass 2" next Friday.

Basically, Massive maintains an ad server that holds recent and relevant ads so that they can be downloaded into the games when appropriate (or when agreed). Ads are served based on game title, length of play and other criteria.

The only question that remains is: How much is too much? Many avid gamers are soured by this feeling it takes away from the experience.

According to an article by the Wall Street Journal (sorry, no link), more and more companies are considering using video games to help convince people to buy their products.

-In 2002, EA Games brokered the first seven-figure ad-placement deal for The Sims Online with McDonald's and Intel
-In 2004, Jeep created an online video game that simulated the experience of driving the Wrangler Rubicon. They found that 500 of the first 1500 cars purchased were purchased by people who had played the game. In all fairness, there's no way to know if they were already interested before the game experience.

The much-coveted 18-35 year old males are spending more and more time on games than TV, so it could be a great opportunity. Massive seems the best placed to take ADvantage of this new outlet. By the way, Massive was acquired by Microsoft this year, so XBox Live will probably be the biggest outlet.


BusinessWeek, "Is That a Video Game -- or an Ad?"

Massive Website

Web Site Hot List Member: weather.com

I found it quite surprising and in some ways entertaining that weather.com claimed the #3 spot in Adweek Magazine’s 2006 Website Hot List. Wedged in the list amidst the likes of You Tube, My Space and other interactive, social sites, in addition to media giants like Business Week, weather.com is able to boast a unique audience of 33+ million, bigger than that of You Tube. 10 years old and still growing and improving, weather.com’s success and popularity as a site is a testament to importance of distribution and ability to reach and attract an audience. While social networking and viewer engagement websites are undeniably hot, this provides a noteworthy counter example of capitalizing on something that could be seen as mundane (the weather) and turning it into a necessary information fix. Weather.com has found and continues to develop new ways to conveniently and creatively get the info into the hands of its visitors and spread its reach.

Or maybe Americans are just obsessed with knowing the weather forecast, which let’s face it, is inaccurate half of the time anyway.

Profit from your time online

A new startup called Root Markets allows a user to control it's online data - primarily what one is viewing as you search through the net. It basically is a program that tracks time spent online, storing data in a "vault" will then be able to be selectively shared with others, including marketers - thereby allowing you to profit.
http://www.businessweek.com/magazine/content/06_39/b4002097.htm?chan=tc&chan=technology_technology+index+page_more+of+today%27s+top+stories

I do agree with the article that alot of customers won't want to be bothered with this new program, especially having to give personal information over the web, however I think younger customers will be easier entinced by this program due to the monetary incentive and could easily adopt and integrate this into their web behavior. It could then spend more generally to other groups. Also more importantly, it gives value to all your time spent online and lets you reap the benefits instead of some other middleman which would be great!

PPLive - Old wine in new skins?

Ok ok, video streaming is old. And, P2P is old, too. But what do we get if we combine them?
PPLive!

PPLive is yet another P2p streaming application network that allows streaming of video, including TV channels, to be extremly smooth. PPLive was created at the Huazhong University of Science and Technology in the People’s Republic of China. It is part of a new generation of P2P applictions, that combine P2P and IPTV. Just like in classic P2P technology, all PPLive users become broadcasters and recievers themselves, thus reducing the cost, jitter and network load of traditional streaming. That means that the more users are online, the faster the programs can be loaded. While PPLive seems to be a great web application, it's use is legally questionable. Especially, the copyright issues with blockbuster movies being fed into the net from Chinese TV channels raise questions. How can it be that movies like Pirates of the Caribbean2 and Da Vinci Code are available via PPLive streams while they are still played in the cinemas?

In my opinion, yet another example of a great technology and China's struggle or unwillingness to protect IPR. However, the business model seems to work: Ads are shown during loading stage and in lower part of the the player during the program.


PPLive Homepage
PPLive in Wikipedia

GahooYoogle

Further to our Search Engine debate, check out GahooYoogle. It's easy to see the differences between the engines when you can use them simultaneously side by side in this mashup. Take for example our Search for Failure. Yahoo! - presumably because its search algorithms can't include Google's patented PageRank approach - is not susceptible to 'Google Bombing' and neither George Bush or Michael Moore's pages are listed. Despite the potential for manipulation via bombing and link farms, I think it is agreed that Google's search is simply better - a point Yahoo! is attempting to fix through the pursuit of Social Search, probably best illustrated through their release of Yahoo! Answers, which I love and has the potential to suck your day away if you are the least bit curious about anything:

Best Search Engine via Yahoo! Answers

Yahoo vs. Craigslist

Yahoo will be launching Yahoo Marketplaces as an attempt to take a chunk of the online classifieds business (which has achieved growth of 47% in one year). This new unit will combine Yahoo Listings with other units and will be led by Hillary Schneider, former executive at Knight Ridder.

As a Craigslist fan, it will be interesting to see what approaches Yahoo takes to gain share in this market, and how Craigslist and Trader Publishing Company - both controlling 75% of the market - react to maintain their spots.

http://www.webpronews.com/topnews/topnews/wpn-60-20060915YahooHiresNewspaperProToRunClassifieds.html

Profiting from Online Video

After YouTube's success, many companies are looking to make money from online video. AOL's new AOL Video site will feature 45 new channels of online video-on-demand. AOL Video will be free for AOL broadband users in order for the company to increase pageviews and profits through increased advertising. ESPN is also attempting to capitalize on online video. ESPN is planning to charge Internet service providers for the right to offer ESPN360, ESPN's broadband video site. As more and more companies attempt to capitalize on the Internet's new trends, online video is drawing established companies to search for new ways to increase audiences and profits.

http://www.webpronews.com/insiderreports/marketinginsider/wpn-50-20060801AOLESPNSIAndTheVideoGame.html

UIEvolution to Develop a Mobile MySpace User Experience

Two days ago MySpace announced a deal with UIEvolution to make a graphical mobile version of Myspace. They will be able to extend the user experience beyond the pc. A fabulous way to link the best social network on the web with the most obvious form of staying in touch - one's cell phone. One can assume as we wait to hear more that there will be some kind of mobile to web server interactions.

As our guest speaker mentioned, although we are all attached to our cell phones, we aren't nearly as mobile savvy as other countries. This may be another small stepping point in taking us away from our computers screens and on the road.

http://biz.yahoo.com/bw/060913/20060913006104.html?.v=1

Microsoft's Zune to take on Apple's iPod

Microsoft announced earlier this week that its soon to be launched Mp3 player, Zune will include wireless technology. This feature will enable customers to share songs and playlists with other Zune owners.

Will they really steal significant market share from Apple's iPod? Microsoft hopes to distinguish itself from the competition by striving to build a sense of community with an Mp3 player and leverage its community-based application experience in Xbox Live. However, we must remember Microsoft was a fairly early adopter in the online video game market with no clear market leader. Never shy from a challenge, Microsoft will face several hurdles as it pushes forward to gain traction in the Mp3 player market. It is taking the right steps by getting bloggers to preview the product and create a buzz on the Net. Though I personally don't see much success in the current product, Microsoft may capture a slice of the Mp3 phone market when a Zune phone becomes available.

"Third-Screen" Marketing

Major cell phone providers have announced they will open their mobile phone services to advertisers. This week Sprint was the latest of the major mobile phone carriers to announce its intention to allow ads on the first page customers see when accessing the internet from cellphones on its network.

As a customer who rarely uses the internet from her cell phone because of the slow response time and small screen size, this new move by service providers will only keep me farther away from surfing the internet on my cell phone. Advertisements have invaded nearly every aspect of our lives. Is it really necessary to add ads to a tool that doesn't even work that well to begin with?

http://adage.com/digital/article?article_id=111748