The presentation addresses the current trends, challenges and opportunities in the web-tv industry. The presentation was held at Webit Expo on October 27, 2010 by Marcus Hartwall.

1. WEB-TV
The trends,
the challenges and
the opportunities
Marcus Hartwall
New Media Director
October 27, 2010

2. “Television is like the American
toaster. You push a button and the
same things pops up every time”
- Alfred Hitchcock
slide 2

3. Not anymore…
slide 3

4. slide 4

5. Outline for today
slide 5
1. The trend
“Internet video explosion”
2. The challenge
“The war of the global living room”
3. The opportunity
“Maximizing the impact of video advertising”

6. slide 6
The trend
Internet video explosion

7. slide 7
 Internet video is now over one third of all
consumer internet traffic and will approach 40%
by the end of 2010.
 The average viewing time of videos from Web
TV platforms is currently 9.5 minutes. In 2008,
the average viewing time was 4.8 minutes. By
2013, this time is expected to double to 18.5
minutes.
 Internet-connected television sets are expected
to be in 43 million United States homes by 2015,
up from 2 million this year.
The trend
Internet video explosion
0
5
10
15
20
Average web-TV viewing
Daily minutes

8.  Advertisers spend $12.1 billion online first half of 2010, which is
up 11.3% from the year before.
 Video advertising increased by 48% this year and expected to
reach $16.1 billion through paid and ad-supported services by
2012.
The trend
Internet video explosion
slide 8

9. The challenge
The war for the digital living room
slide 9

10. The content
makers
The
broadcasters
The viewer
Back in the good old days
The distributors
slide 10

11. The viewer
The content
makers
The device
makers
The service providers
The internet
giants
slide 11
The
broadcasters
$ The distributors

12.  Google paid $1.65 billion for the site in October
2006, but has struggled to make it profitable.
 Every minute, 24 hours of video content is uploaded
to YouTube.
 Over 30 billion videos were watched in the U.S.
alone.
 Signed deals with Hollywood studios - including
Sony, Lion's Gate and M.G.M. – to publish thousand
of TV episodes and movies.
 Google recently opened up for the possibility to
charge for premium content.
 Credit Suisse recently published a detailed analysis
of YouTube's business, estimating that the site lost
approximately $470 million in 2009.
The challenge
YouTube
slide 12

13.  Joint venture between NBC Universal, Walt
Disney and News Corp.
 790 million video ad views during August 2010.
 Hulu Plus launched in the summer of 2010 with
a subscription based model. For $9.99 a month
the users gain full access to their entire library in
high definition and possibility to play it on
devices like the iPhone, iPad, Playstation, Xbox
360 and TiVo’s.
 Currently considering an initial public offering to
raise $300 million in 2011.
The challenge
Hulu
slide 13

14.  Google’s objective is to bring "the web to your
TV and your TV to the web”.
 Several internet companies and media outlets
- including HBO, CNBC, Netflix and Amazon
– will offer Web content for connected TV
screens.
 Unified listings are a big part of how Google's
trying to harmonize web content with TV
content.
 The idea is to divorce the content from the
source. Google wants to become the main
starting point for our TV experience.
 Major television networks — ABC, CBS, Hulu
and NBC — will currently not participate.
The challenge
Google TV
slide 14

15. The opportunity
Maximizing the impact of video advertising
slide 15

16.  Study by The Nielsen Company earlier this year covering
412 products across 951 video advertisements.
 Effectiveness measured based upon brand metrics of ad
recall, brand recall, message recall and likeability.
 Focused on the relative impact of video advertising
compared to TV advertising, as well as the combination of
the two.
The opportunity
Recent research
slide 16

17. The opportunity
Recent research
46
28
21
14
65
50
39
26
General
Recall
Brand
Recall
Message
recall
Likeability
TV Online video
44
26
19
13
52
35
29
17
General
Recall
Brand
Recall
Message
recall
Likeability
TV TV + Online video
+18%
+35%
+53%
+31%
slide 17

18. Advantages of video advertising
Forward learning experience
Combination of sight, sounds and motion
Interactivity - “one click away from your website”
= Most effective online advertising medium
• 10 – 50 times higher CTR
• Up to 10 times higher conversion rate
+
No extra cost for producing the commercial
+
+
+
slide 18

19. slide 19

20. Business logic
 Average CTR 0,2 - 0,8% on banner campaigns
 Average CTR Nova Play 5 - 9%
 To achieve 5,000 clicks you can…
 Buy banner (300 x 250)
 1,000,000 impressions (CTR 0,5%)
 CPM: 14 BGN
Campaign cost: 14,000 BGN
OR
 Buy video ad (30 sec)
 100,000 impressions (CTR 5%)
 CPM: 30 BGN
Campaign cost: 3,000 BGN
slide 20

21.  Key success factors are:
 Placement of the ad.
 Landing page optimization.
 Dare to be creative!
The opportunity
How to make an effective campaign
“Someone might click-through on
an ad, but clickthrough’s don't
always translate into results.”
slide 21

22. What is coming next?
slide 22

23. slide 23

24.  We are currently experiencing the biggest
paradigm shift ever experienced in the
industry.
 Two fundamental questions need to be asked:
 What will be prevailing revenue model?
 How will the ecosystem players cooperate
to make this happen?
 From an advertiser perspective, video
advertising is the new “must have” online.
The summary
Ultimately - the winner is the viewer!
slide 24

25. Thank you!
Marcus Hartwall
marcus.hartwall@ntv.bg
Presentation available at slideshare.net/novatelevision