Exclusive: Boomers will Pay for Online Video, IBM’s Chief Media Strategist Tells Beet.TV

By on 01/30/2008 9:26 PM @beet_tv

The conventional thinking around monetizing video is through advertising. But paid subscription and pay-per-view will be viable, according to Saul Berman, who heads the global media and entertainment strategy practice for IBM.  He is based in Los Angeles.

He told me that as much as half of U.S. consumers over 45 years of age are willing to subscribe to video rather than "participate" in advertising.  (This is proprietary research data not previously released.)

What they are willing to pay for is hard to say, but it is going to happen.  He says that subscriptions can be bundled with premiums — much the way that inexpensive song downloads are bundled with premium items such as ring tones.

If the subscription model works for online music, why not for online video? 

Saul is a co-author of "The End of Advertising as We Know It," an exhaustive white paper at the revolution taking place in advertising and content monetization.  The study was published in November and is free.  Here his his adaptation of the study for Adweek.

Ad Networks Will Grow Dramatically

Another trend will be the rise of advertising networks. Saul says that they will take 20-30 percent of the advertising dollars within three years.

I met him at the AlwaysOn Conference in Manhattan where he was a speaker.

This clip is definitely one to watch.  You can grab the video file here.

For a round-up of the conference, check out this post by VentureBeat’s Julie Ruvolo.

– Andy Plesser

Recent Videos
image
Havas Dish Latino Digital Campaign Jumps to TV

Some brands are now migrating successful digital ads to the TV set, in a reversal of what was once the trend of repurposing TV spots for online video, says Rori DuBoff, Global Head of Strategy at Havas Digital, in an interview with Beet.TV. Havas recently launched a campaign for Dish Latino around the World ...

image
‘The Big Ideal’ Fuels Cross-Platform Content: Ogilvy’s Abby Marks

Nevermind your product, what do you stand for? That’s what OgilvyEntertainment’s senior strategy and operations director Abby Marks tells her clients, channeling her agency’s late founder. “David Ogilvy was always about research and treating the cons as an equal, thinking about ...

image
JWT’s Branded Content Approach Starts with Participation

Branded content is not an “if” for marketers; it’s a must-have, says Eric Weisberg, Executive Creative Director at JWT, in an interview with Beet.TV. To be effective, branded programming needs to deliver on the right combination of entertainment and utility. As an example, he points to work ...

image
Multi-Channel Network Collective Digital Studio Launches New Content for Purina

Los Angeles-based Collective Digital Studio (CDS) launched a new series of programming for its popular YouTube channel Petcentric as part of a recently minted deal with Purina, say Paul Kontonis, SVP in an interview with Beet.TV. That channel is now managed by CDS, which works with YouTube influencers to ...

image
Millennials Are Cool With Brands Changing All The Time: Initiative/IPG Study

Brands need to mimic the characteristics of millennial-age consumers to curry their favor, according to research, The Reset Generation, conducted by media agency IPG’s Initiative group. “Their expectations of brands are what they think people expect of them,” says Initiative’s US ...

image
If “Content Is King,” then “Distribution is Queen” as Paid Media is Essential,...

Mindshare, the media agency within WPP, has created some 250 branded campaigns for video and television over the past 9 years, says David Lang, Chief Content Officer and President of the agency’s entertainment division,  in this interview with Beet.TV  On the subject of viral video hits and paid vs. ...

image
Hearst is Building a “Netflix Model” Around Magazine Video Content

Hearst has just launched “CosmoBody,” a daily fitness show which is advertiser-free and is  being offered on a subscription basis.  This is the first of what will be a number of Hearst titles and Hearst partners who will be part of a new “Netflix model,” explains Chris Grosso, SVP ...

image
Yahoo Gets Post-Web Analytics With Flurry: Jun’s Reichgut explains

Yahoo has bought itself a role in the advertising ecosystem that comes after the desktop web by acquiring mobile analytics firm Flurry last week. That’s the assessment of one cross-platform video ad tech vendor CEO. “A media company that was based on the web is now struggling getting in to the ...

image
Razorfish, Google & Videobloggers Drive 6+ Million Video Views for Unilever Haircare Campaign in...

A YouTube program in the U.K., designed by global agency Razorfish for several Unilever haircare brands, has driven more that six million views since its launch  in April, says Pete Stein, Global CEO of the agency in this interview with Beet.TV The program takes the pulse of Google queries on hair and ...

image
The Viral Video Is Not a Business Model

While the viral video hit can be golden for brands, it can’t be done consistently and it’s “not a sustainable business model” says Mitchell Reichgut, CEO and founder of the Jun Group, a digital video ad services firm that secures views for branded content on hundreds of publisher ...

image
TubeMogul Crushes Wall Street with 64% Rise on First Day of Trading

Whether the dramatic increase of the company’s stock price on its initial day of trading, which closed at 11.50, up $4.50 or 64%, can be sustained or not, time will tell.  For TubeMogul co-founder and CEO Brett Wilson, he is focused on “building a big, transformative company,” he told ...

image
Native Video Advertising on Mobile Devices Powers Growth for Jun Group

The dramatic rise of mobile, opt-in video advertising has helped fuel revenue growth for the New York-based adtech firm Jun Group by 120% in 2013 and the company is on pace for that kind of growth this year as well, says CEO Mitchell Reichgut  in this interview with Beet.TV. In the last few years, Jun ...

loader