Today in Connected Consumer

Online platforms are sharpening their pitches to advertisers as they compete more aggressively with traditional platforms for marketing dollars. AOL is making perhaps the most direct bid to shift marketing dollars from TV to the web, partnering with Nielsen to offer advertisers the same sort of guarantees online they’re accustomed to in the offline world. Rather than pricing ads based on total impressions or click-throughs, AOL will now guarantee an ad will be seen a specified number of times by a particular demographic group. OTT video service Hulu, meanwhile, it will begin reporting only those ads the viewer watches all the way through, not those where playback was initiated but not completed. While the new approaches carry risk, they could also help boost online CPMs if advertisers come to trust the new data.

Vid-Biz: Playboy, Video Ads, Verizon

Playboy Getting into TV Everywhere; adult network in talks with operators about wrapping an online option into the pay channel’s subscription. (Multichannel News)

Shenanigans with Video Ad Delivery; some video ad networks being deceptive about the number of impressions they deliver by counting auto-playing ads that run below the fold. (MediaWeek)

Verizon Eyeing DirecTV Acquisition? Buying the satellite company would make the telco the No. 2 pay TV player, but AT&T’s relationship with DirecTV could complicate such a purchase. (Tech Trader Daily)

CBS Releases College Sports iPhone App; app will live stream 15 SEC football games and select SEC basketball games. (Contentinople)

TV Sales Down, As Is Advertising; sales of TV sets down 15 percent in the first quarter, with media spending by manufacturers down 28 percent year-over year to $58.3 million. (Ad Age)

Wikipedia Co-Founder to Launch Kids Education Video Site; Larry Sanger’s will be a directory of the best children’s educational vids. (Business Insider)

8 Really Bad Tech Videos; from Microsoft’s Songsmith to the sock puppet, a round-up of truly awful technology clips. (Wired Gadget Lab)

Where’s the Money in Online Video?

This post was originally written for GigaOM‘s syndicated column relationship with BusinessWeek. It’s relevant to NewTeeVee so we’re publishing it here as well.

The sharp growth in online video viewing, increasing availability of TV online, and proliferation of high-quality, web-originated content has made it easy to point the arrow for online video advertising up and to the right. But while video will probably continue to be a bright spot of growth in a dull economy, that’s mostly because it’s just getting started. The reality is revenues will be close to nothing for a long time, and the growing number of tech entrepreneurs and creative types in the space should probably be worried that industry watchers are now cutting their expectations for growth in online video revenues based on factors other than the shaky U.S. economy. Read More about Where’s the Money in Online Video?

Vid-Biz: Joan Rivers, CPMs, Ryder Cup

Hollywood Interactive Gets $5 Million; company receives Series A led by BlueRun Ventures, and secures Joan and Melissa Rivers for red-carpet coverage. (Variety)

Online Video CPMs Higher Than Display Ads; new poll from Bain and Co. shows the average CPM for video ad was $43, while the average for a display ad was $15. (eMarketer)

Ryder Cup Goes Mobile; golf match between the U.S. and Europe will be broadcast over Qualcomm’s MediaFLO service. (Broadcasting & Cable)

Lionsgate Launches YouTube Channel; site will use clips from films like 3:10 to Yuma and Good Luck Chuck as promotion for sales of the packaged versions of the movies. (The Hollywood Reporter)

Bebo Launches New Docu-Series; Meet the Freshers goes to 16 different universities in England to find out what first-year students are up to. (Bebo)

Web Stars to Judge eBillme Video Contest; iJustine and Gary Vaynerchuk to judge entrants who confess hidden shopping splurges. (eBillme)

Video Ad CPMs: It Pays to Be a Pro

It’s pros before average Joes when it comes to online video ad revenue. That’s the word from a study just released by The Diffusion Group, which forecasts that professionally produced content will grab most of the $590 million video ad market today and the $10 billion video ad market of the future through consistently higher CPMs that those garnered through user-generated content. TVWeek recaps the findings:

  • CPMs for professional long-form video are about $40 now and predicted to rise to $46 by 2013.
  • CPMs for professional short-form video are roughly $30 now and expected to hit $34 by 2013.
  • UGC vids currently get $15 CPMs and are seen rising a little, to $17, by 2013.

Professionally produced content includes work by studios, networks and new media companies like Revision3.

We’ve written before that UGC is expected to account for 42 percent of all streams but only get 4 percent of the video revenue for the next five years, while professional content is forecast to account for 58 percent of all streams and gobble up 96 percent of the revenue. And now we have a better understanding as to how that breaks down.

With speculation running high that YouTube can only monetize 3 percent of its content, this CPM data makes it even more clear why the video-sharing site is doing deals with the likes of Lionsgate.