Creating, Promoting and Monetizing Online Video Content

By Varun Gambhir

July 22, 2012

• Online Video in India

• Is there Money to be Made?

• Creating and Monetizing on YouTube

• Promoting our Content across Social

• Multi-Revenue Stream Model

• Required Seed Capital

• Your Feedback

Creating, Promoting and Monetizing Online Video Content

Social Media in India

Facebook • Total users: 43 Million (#2

globally) • 54% Online Population

Penetration • 40% Growth in last 6 months

YouTube

• Over 23 million unique monthly visitors

• Claims to be India’s largest English entertainment channel

• Online video growth @70% y-o-y

LinkedIn • Over 15m visitors from India • Lesser repeat visits • Seen as an essential profile for

those in metros and other social networks

Twitter

• Total users : 9 Million (#6 globally*)

• High concentration of media, celebrity, bloggers and other online influencers

100,000,000+ Internet Users; 20% login daily 85% visit social media channels

Online Video in India

• 30+ million Internet users age 15+ watch online video in India from a home or work location

• An average viewer consumes 58 videos and watches 5 hours of video content monthly – Viewership on Google Sites,

driven by YouTube.com represents nearly 50% of all videos viewed in India

– Facebook.com ranked second with 6.6 million viewers and 30.1 million videos viewed

– Metacafe in third place with 3.9 million viewers

• Top Video Properties in India – based on Total Unique Viewers in January 2011

• Total India Audience – Age 15+ Home & Work Locations • Source: comScore Video Metrix Total Audience

Total Unique Viewers (000)

Videos (000)

Minutes per Viewer

30,155 1,755,186 302.8

Google Sites 23,563 785,417 101.0 Facebook.com 6,637 30,091 12.4 Metacafe 3,937 33,808 35.3 Yahoo! Sites 2,843 10,960 13.0 Dailymotion.com 2,720 24,128 56.5 VEVO 1,374 4,010 30.1 Network 18 1,229 5,525 109.0 Rediff.com India Ltd 861 2,930 5.0 Microsoft Sites 845 4,890 20.2 MIPS.TV 782 3,414 49.8

7 of 10 Web Users in India Watch Online Video

YouTube Audience

• Viewers mostly in their 20s; spilling over into the 30s and Teens

• 80% YouTube users watch videos from Home

• 9% watch videos on Mobile

• 75% of Content Created in India is consumed in US, UK, Australia, presumably by the NRI audience

• 60% of the Content watched by users in India, is created for India

6 million Indians access YouTube Daily

Leading YouTube India Content Creators Digital video production and distribution company with over 10,000 short videos of subjects ranging from news, entertainment, yoga and kids.

Leading YouTube India Content Creators

Edgy content around Bollywood

• 1,156 videos • 31,254 subscribers • 118 million video views

Online video encyclopedia on India

• 6,958 videos • 13,721subscribers • 41+ million video views

Internet Comedy Show in TV Format

• 1,600 videos • 9,000 subscribers • 17 million video views

Online Video for On-Air Channel

• 14,375 Videos • 15,630 Subscribers • 63+ million video views

Bollywood News & Entertainment Channel

• 544 videos • 183 subscribers • 5+ million video views

Other Popular Categories: • Technology • Beauty • Music • Fashion

Is there Money to be Made? 10 YouTube Stars who made over $100,000 in 2010

Click on Image to View Channel

Is there Money to be Made? 10 YouTube Stars who made over $100,000 in 2010

Click on Image to View Channel

Is there Money to be Made? 10 YouTube Stars who made over $100,000 in 2010

Click on Image to View Channel

Is there Money to be Made? 10 YouTube Stars who made over $100,000 in 2010

Click on Image to View Channel

Is there Money to be Made? 10 YouTube Stars who made over $100,000 in 2010

Click on Image to View Channel

Is there Money to be Made? How it Works

Revenue only comes from banner and video ads served with Content

• CPM for the banner ads is $1.50 (2009 estimate to be conservative)

• CPV for video ads is $0.5 (2011 estimate)

• YouTube splits ad revenue with partners 50-50

Industry Trends

• Digital’s share of advertising will rise to Rs. 1,969 cr in 2012 in India

• Display accounts for 13% of the spend (Rs. 393cr) and Video 2% (Rs. 59cr)

By 2014, India will have 300m Internet users, and will surpass the US (currently estimated to have 250m users)

Is there Money to be Made? Expert Voices

Mahesh Murthy Founder – Pinstorm

Digital Marketing

“YouTube is, without doubt, among the largest TV channels in India. Online video site has eight million

logged-in devices viewing it daily in India. That’s a GRP (gross rating point) or TV rating of 7 every day, day after day. No TV channel in recent times—including Star Plus and Colors—has come anywhere near delivering these

numbers with such consistency.”

Joe Nguyen VP – comScore Southeast Asia

Praseed Prasad Director – Digital Trading, GroupM

Max Hegerman Head – Digital, JWT

“Online video viewing is quickly becoming a central activity for

Internet users in India”

“FMCG and Consumer goods players are looking to move their

money spent on television towards video online”

“Telcos, automobile makers, and banking and financial services spend about 12% of their marketing budgets on

digital. Apparel brands spend anywhere between 15% and 20%. Consumer good firms have increased to about 5%”

Four Steps to Create our YouTube Channel

1. Picking a Subject We’re Passionate About – Viewers need to see we’re passionate

about our topic, and love our video-making

2. Create Great Video Content – Leverage Annotations and Interactive

Features on YouTube

3. Publish in Pattern and Promote Well – Publishers who use a pattern for video

publishing get more views

4. Grow an Initial Audience Base and Apply for YouTube Partner Status – General target stands at 500+

subscribers with 500,000+ Channel Video Views

– A YouTube Partner Status allows us to monetize our content on YouTube

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+

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Once We’re a YouTube Partner

• Once approved, we can monetize content by:

– Overlay ads that pop up on the bottom of a video

– Serve banner ads that appear next to the video

– And/or pre-roll ads that play in front of a video

• YouTube will pay once a video makes $100 via a Google AdSense account

• YouTube will NOT let us make money off a video if it:

– Contains content that we didn't create or get permission from its creator to use

– Shows people from whom we did not get permission

– Contains content inappropriate for children

Promoting our Content

Website

1 Twitter

4 Google+

5 Social

Bookmarks

6 Online

Influencers

7 2 eMail Facebook

3

Promoting our Content

• Two Unique Content Pieces a Day – 14 Content Pieces a Week:

– 7 Videos

• Based on existing content, and content recorded twice a month

– 4 Graphics

• Based on funny, as it strikes

– 3 News-based Comedy Pieces

• Based on the week’s headlines we’d like to make a comedy statement about them, on video

10 Videos Published a Week / 40 Videos Published a Month

Promoting our Content

– Objective: Online home, and to tap into Google Searches

• Website and Google+ Page

JOKES FUNNY VIDEOS TIME PASS COMEDY VIDEOS

• 2,740,000 local monthly searches

• 20,400,000 global monthly searches

• 550,000 local monthly searches

• 2,240,000 global monthly searches

• 246,000 local monthly searches

• 1,000,000 global monthly searches

• 60,500 local monthly searches

• 550,000 global monthly searches

+

Promoting our Content

– Objective: To create a community of people passionate about our brand of content – and drive social viewership and subscriptions

– Regular simple contest activity to encourage fan engagement

– Facebook Best Practices: 1. Be succinct, Post Regularly at Optimal Times

2. Know your Audience, Be seasonable, timely and relevant

3. Post photos and Videos; bold visuals that capture your brand

4. Give fans exclusive access to content, products, events, and offers – deliver value

5. Encourage Interaction, including a call to action in posts

Promoting our Content

• Influencer Tie-ups

– Co-branded content, specific to the influencer’s existing theme

• Twitter

– To amplify content and make friends with influential Twitter users

• Social Bookmarking Sites

– To be discovered by the web of online content creators

Music Fashion & Lifestyle Automotive Technology

Viral Content Marketing

Viral Content Marketing

Viral Content Marketing

Multi Revenue Stream Model

Ads on Google Network

Product Features for Brands

Ads outside Google Network

Monetizing Social and Web Assets

Video as VAS for Mobile

1

2

3

4

5

Podcasts and Subscription Apps 6

• Our primary video content distribution will be via YouTube, fueled by a Facebook Page to create a community around the our content

• By investing Rs. 300,000 in Facebook Ads, we can amass our initial fan base of +50k fans

• This fan base can be then expected to grow organically @20% monthly to reach +200k fans in the first 12 months

• In addition to Facebook, we’ll create a long tail of community and content viewers by creating and maintaining an active website, emailing list, and a presence on Twitter, Google+ and Social Bookmarking Websites

Where do we begin?

1

2

3

Expected Views and Revenues Contribution

30% Contribution Each

8% Contribution Each

65% Contribution

Online Ads

15% Contribution Each

Branded Inserts

Mobile Revenues

App Subscription

Views Revenues

Seed and Working Capital

Seed Capital

Online Infrastructure Setup (YouTube,

Website, Emailers, FB, TW, Google+, Social Bookmarking Websites)

Budget for Social Ads

40 Hours

60,000 Fans

Rs. 20,000

Rs. 300,000

Monthly Working Capital

Content Production, Development and Upload (Working on existing content

and Two X 4 hour shoots a month with in-house equipment)

Content Planning, Promotion and Measurement (Website, Emailers, FB, TW,

Google+, Social Bookmarking Websites)

Talent, Script, Concepts and Creative

50 Hours

50 Hours

10 Hours

Rs. 25,000

Rs. 25,000

Rs. 25,000

Contingency @10% Rs. 7,500

Projected Views, Revenues and Investment

-

10,00,000

20,00,000

30,00,000

40,00,000

50,00,000

60,00,000

70,00,000

1 2 3 4 5

Total Views (x10)

Total Expected Revenue

Total Expenses

Year

Total Expected Investment over Two year period – Rs. 16,00,000

Expected payback period @20% RoI – 4 Years

Expected 5th Year Profits, after recovery of investment @20% - Rs. 10,00,000 to Rs. 30,00,000

YOUR FEEDBACK