Executives share ‘dos’ and ‘don’ts’ for making money from online content

There's a lot of money in Banff, and nowhere is this more apparent than at the opulent Fairmont Banff Springs hotel. Here, NextMEDIA delegates are learning first hand - from online content providers and ad agencies - how to get their hands on some of this money, particularly in exchange for their digital content. Take, for instance, this morning's keynote speaker Jim Louderback, CEO of San Francisco-based online TV network and content creator Revision3. Among the leaders in the shift from the current shovelware mentality to original online content, Revision3's videos currently receive six million views a month, and the company brings in $500,000 in profit per year from one just one of its web-specific properties - weekly tech/web and culture show Diggnation. Revision3 produces Diggnation for $250 a minute and generates revenue through sponsorship, host mentions and product placement. Compare that to high-quality drama which costs more than $20,000 a minute to produce. In one clip Louderback shared with the crowd, the Diggnation hosts not so subtly, but to hilarious effect, enjoyed Carson's brand ribs and Beck's beer. By employing this product-plug style Revision3 boasts 100% unaided product recall and 48% product purchase rates among viewers. But Diggnation isn't the only online-exclusive property making traction with viewers and advertisers. Louderback's short list of other must-watch programs included Tiki Bar, Wine Library TV and Ask a Ninja. The shows share many commonalities: they are hosted and un-scripted; stick to a central theme or subject; and are hilarious. Or as Louderback said, "We can say whatever we want, and we can drink." If Louderback is correct, the future of online content is content-specific iterations of Wayne's World, with hosts who are "experts, not actors" (not sure if the host of Ask a Ninja is actually an expert ninja, but he's darn funny). Although the money-making model for original online content may not be set in stone, Louderback shared temptations to avoid. 1) Don't develop online shows with the end goal of getting them on TV2) Don't shoot for the 20 million click YouTube-style programming3) Don't make online a dumping ground for D-list celebrities (think Jerry O'Connell and Ellen DeGeneres' brothers, and the woman who played Andrea on Beverly Hills 90210)The key to monetizing online content, he added, is to develop a repeatable audience that can be sold to advertisers. One of the best ways to do this is to use talent that is passionate about the subject matter and are already developing online communities through social networking. Making nice with ad agencies doesn't hurtAt Saturday's panel session, The Top Ten Things You Should Know About Building Relationships With Advertisers, ad agency executives shared tips on how content creators can make advertisers their clients. Tip number 1: develop a relationship with the agencies, not the advertisers. "Our clients look to us as a strategic partner," said Jefferson Burruss, director of digital and online at L.A.-based agency DDB. "Our job is trying to find the best path for them to achieve their goals." One way DDB accomplishes this is by taking pitches from content creators who have ideas on how to further develop some of the brands DDB represents. The other pathway - bypassing the agencies and going directly to the brands - can create friction between creators and agencies, but it's not a territorial issue. "Our staff likes having conversations with creators and developers," explained Burruss. "Circumventing them makes them feel left out.""If you go to the brand eventually they will pass you on to the agency anyway," added Mark Szabo, VP and managing director at Critical Mass in Chicago. Szabo's advice to creators is to research the brands as much as possible to before pitching agencies, and to know that timing is very import in advertising, so appropriately timed pitches will likely be better received. It's wisdom that should definitely be taken into account. BBD and Critical Mass count Volkswagen and Rolex among their clients, and that's money that should not be ignored.

Executives share ‘dos’ and ‘don’ts’ for making money from online content

Broadcast | June 8, 2008

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