A report from iResearch predicts that the market for online videos will grow beyond 36 billion Yuan by 2015. This market is expected to reach 100 billion Yuan by 2020 with the proliferation of mobile network environments and improvements to basic cellphone hardware specifications. Facebook, Google, and other leaders in the industry have deployed technologies for action videos and larger video resolutions. Such efforts include Youtube’s replacement of info with cards, allowing flexible editing of external links or e-marketing information as well as Facebook’s collaboration with the video monitoring service of audible magic. These signs show that the market’s expectation of the video industry has gone beyond the contents of the video itself.
Rejection of Traditional Video Advertisements
Here are some statistics that should be digested. An average Netizen watches 80 minutes of video every day. A report from eMarketer titled “Digital Marketing Sales Report in China, 2015” showed that a larger portion of digital advertisement budgets are being directed towards online video broadcasting. Analysis of video website revenues revealed that advertisements are still the leading source of income. However, such advertisements are provided in the form of sudden pop-ups, stickers, and even videos lasting 30 seconds to 120 seconds that users cannot skip at all. Most users would choose to do other things during this time, or switch to another window to ignore such video ads. Less than 1% of the audience would actually view these ads to completion. Are such playback volumes and performance expected by the advertisers? Questionable ad performance and poor conversion to actual purchases reveal a serious flaw in the prices of video ads.
Audiences are more willing to accept online ads than TV ads
Zuckerberg, the founder of Facebook, predicted that the golden age of online video market will arrive in 5 years’ time, heralding revolutionary transformation of increasing user requirements and habits. Video platforms have begun to seek additional value-adding service models beyond conventional advertisements and the current state of royalty payments and advertisement income. When the wave of transformation arrives, online video giants such as iQIYI and Youku have both released solutions such as click-to –buy and Video-out applications. Floating windows within the video can be established at the backstage. Video creators would be able to edit video contents, labels, and derive actual expenses through accesses of external links provided. This solution basically makes every frame and picture as a portal to additional traffics.
“Video + eCommerce” ideas are now moving beyond the conceptualization stage. Providing additional value to video screens will ensure that advertisements linked to the video contents could be better directed to the targeted users. However, video websites need to overcome the fact that not every video uploader is a skilled video editor, and poor work may negatively affect user experience. The current solution includes AVD and Cinematique manual labeling. However, manual processing means that advertisement placement could not be implemented on a large scale. To solve this solution, Venvy (with an estimated video of 600 million Yuan) proposed the UGC concept, transferring the vast volume of product matching to both suppliers and users. Nevertheless, plenty of improvement is still required for update efficiency. The market demands a high throughput speed from provision of the source video to online playback. The UGC mode is still unable to fulfill this sense of urgency and quality.
VDS(Video Discovery Service) – New Technology Creating New Opportunities for Online Videos
Last Friday (September 18), the Taiwanese company of Viscovery announced the completion of a platform for identifying objects within videos, and that this technology would be formally released at the end of October. Our journalists have verified that Viscovery originally worked on image recognition technologies that could be transferred to video recognition and analysis. Amos, founder of Viscovery, mentioned that video object searches available on the market could only achieve object categorization and is neither capable of automatic brand identification nor matching of relevant data. VDS is a solution that gives Viscovery its leading edge and has been developed as an open source channel for matching object category to object data, allowing rapid scaling of video value-adding services. Amos also revealed that VDS is also capable of providing another breakthrough achievement in the form of Big Data analysis of video files.
We’re living in an age filled with videos. Video platforms must maintain their competitiveness by leveraging large volumes of video contents and redefining value-adding services to create its own ecology and transform network traffic to actual cash flow.
Kevin Tsai is a lauded personality in the entertainment circle for his talents and skills. Not only is Kevin a well-loved show host, but he has also published a book filled with classical lessons that inspire readers to look at things from another perspective. After shedding his responsibilities as a show host, Kevin has rushed to his hometown of Ningbo in order to unveil his secret bookstore.