WHAT IT IS
Monetizable online video is professionally produced content createdspecifically for the online sphere and which provides a compellingreason to be watched.  Some of the reasons that have traction are thesame as other channels:

• Compelling content - think of any cringe worthy clip discussed at the water cooler
• Very funny and generally "inappropriate" - anything that might get cut from Adult Swim
• Unfiltered and speaks directly and compellingly to a specific group(s) - online echo chamber

Some other compelling reasons are unique to online:

• Content is available exactly when and where the viewer wants it
• It's simply the only economical distribution channel
• Critically timely - you need the information at an exact time (often immediately) - plane crash in the Hudson; traffic camera

WHAT IT ISN'T

• Mass amounts of user generated content
• Poorly produced, unscripted, unedited, general
• Web cams

WHY YOU SHOULD CARE
Online video is rapidly gaining ground and the TV and film industriesare moving aggressively to get their content online in a way the meetsconsumer demand and expectations and to avoid what peer-to-peernetworks did to the music industry.

Currently, video ads are performing significantly better than otherdigital ad formats.  eMarketer reports average click-through rates at:

• .12% for banner ads
• .5% for pop-ups
• 1.7% for video ads

WHAT YOU SHOULD BE DOING
The infrastructure is maturing; broadband penetration is growing(currently 50% of US households and projected to 77% by 2012 asreported by Gartner Group) and, with any luck, the President's stimulusplans will encourage wider broadband access.  Vendors (including opensource solutions) are providing better tools for publishers andexperiences for viewers, which includes some progress on video searchand content management.  Online video has been building momentum sincethe late 90's but it's still very much a rising tide of demand.  Now isthe time to provide solutions.

To learn more about online video, send me an email at Tpenichter@tgpassociates.com.