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Will Multi-Channel Networks take over YouTube?

Take Heed the Rise Of Multi-Channel Networks

With 1 bil­lion vis­i­tors month­ly and enough video views to equal almost one hour for every per­son on earth YouTube has become a tar­get for Mul­ti-chan­nel Net­works (MCN). Mul­ti-chan­nel net­works (MCN) are com­pa­nies affil­i­at­ed with YouTube that work with some of the most suc­cess­ful video cre­ation peo­ple on YouTube to max­i­mize their income. MCNs get involved in every­thing from AdSense video adver­tis­ing opti­miza­tion to cross-pro­­mo­­tion, fund­ing, part­ner man­age­ment, dig­i­tal rights man­age­ment, audi­ence devel­op­ment and pro­­duc­­tion-stream­lin­ing. In essence they are dig­i­tal tal­ent agents. This is the qui­et before the storm, if you’re look­ing to the hori­zon for a glimpse into your future job, read this and take some notes. YouTube gets a bil­lion unique vis­i­tors who in total watch 6 bil­lion hours of video. That’s 40% of the world­wide online pop­u­la­tion. Mul­ti-chan­nel net­works (MCNs) are hot and only going to get hot­ter. This is the start of the mul­ti­chan­nel net­work. Enders Analy­sis reports investors have spent $1.65 bil­lion on MCNs and are see­ing gold for the future. Finan­cial Times points out “YouTube may account for an extra­or­di­nary 57% of online view­ing and 55% of dig­i­tal video adver­tis­ing world­wide, but eking a liv­ing from all this activ­i­ty is sur­pris­ing­ly dif­fi­cult”. At present MCNs…

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Online video advertising: is it soaring or shuffling?

Art direc­tors and account man­agers from online adver­tis­ing agen­cies have some­thing of a conun­drum to con­tend with: is online video adver­tis­ing now siphon­ing adver­tis­ers’ bud­gets away from TV and dis­play, or not? Up, down, flat or what? It would seem that the answer depends on what you read. At the recent VideoNuze Video Adver­tis­ing Sum­mit in the Big Apple last week, lead­ing indus­try exec­u­tives seemed skep­ti­cal about any big switch to online video adver­tis­ing.  GroupM’s Direc­tor, Michael Bologna, believes that dol­lars aren’t mov­ing to online video espe­cial­ly vig­or­ous­ly. He said: “TV bud­gets are flat. It’s hard to shift bud­gets when you pay more for less. Clients are say­ing, ‘We don’t have any more mon­ey, and every­thing is expen­sive.’ They’re not like­ly to increase their bud­gets by 75 per­cent.” Dig­i­tas’ SVP, Adam Schlachter, agreed, pre­dict­ing that Web video will see spend­ing shift on a grad­ual, incre­men­tal basis. Brands are increas­ing­ly “chan­nel agnos­tic”, he con­ced­ed, but many retail clients see their sales rise when they adver­tise on TV, a point he said was “hard to argue with.” Bologna went on to add, “There won’t be major shifts. I just don’t think we’ll see clients cut 30 per­cent of their TV bud­gets for…

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