At the Streaming Media West show a few weeks back, we interviewed Eric Quanstrom, VP of Marketing and Strategy for Sorenson Media. Eric talks with Grant Crowell about a common theme that a lot of discussion was centered around at Streaming Media, namely, monetization of online video. There are multiple ways to think about monetization and ROI when it comes to online video. In many cases, as Eric affirms, the video itself can drive monetization and can be used as a effective marketing and sales tool.
For many companies, media companies in particular, in-stream video advertising is the primary tool for monetization. However, as powerful as video advertising is, for many companies, the video itself is the tool for monetization. As Eric puts it:
"…Monetization of video doesn't have to involve ads. The video itself can be an advertisement…
Additionally, as we've all seen, online video can be an incredibly effective tool for selling products and services. The most effective online videos for business are those that tell the viewer a story and go beyond a typical advertisement or pitch.
The average person sees between 3 and 4 thousand media messages or advertisements a day, I don't think that there is a person alive that is looking for more advertisements. I think that what people are looking for, is to be told stories… Video is a great way to portray products, services, a company's brand, what their value proposition really is… in a way that no other medium, text, audio can capture."
Video is possibly the most effective tool that we have short of being live and face to face, for communicating all that is human, all that is dramatic, emotion… it is a great sales tool at the end of the day. At the end of the day, we all love a great story… break things down for us, simplify, help me understand and categorize what it is that you do and how that is relevant to me"
For those of you who may be unfamiliar with Sorenson, they are probably best known for having what is widely considered as one the best video encoding and compression applications, Sorenson Squeeze. Additionally, earlier this year, Sorenson expanded their focus with a new online video platform, or "video delivery network" as they call it, Sorenson 360."
Eric, thanks for your time and for the story ;-)