Slides from workshop at the Italian Doc Screenings. PDF format. Video have been replaced by You Tube links

1. How to make money
on the web
Italian Doc Screenings, November 2012

2. How to make money
on the web
Maybe....
If I knew for sure, would I still
be here?....

3. Who I am
portante@rai.it

4. Objective
Provide tools or at least a framework of
reference to use the web to our
advantage
Plant some seeds for a more general
discussion
...while avoiding being boring

5. If you want to leave now:
Great potential but not a sure thing
Not just a producer but a marketer
Inspiration but also perspiration

6. Two
main
effects
of
new
technologies:
•Lowering of production and distribution costs
•“Dis-intermediation” 6

7. More capacity...less cost
Capacity Cost
CPU
Hard Disk
Kb/$ (Log)
7

8. ...beyond
imagina9on
IBM 360 - 1964 IPhone 4 - 2010
RAM: 64-512 K RAM: 16-32 G
$5,000,000 530 Euro
8

9. This
trend
is
par9cularly
visible
in
the
audiovisual
industry
9

10. and
in
music
10

11. Example:
Bloody
Omaha
http://www.youtube.com/watch?v=WRS9cpOMYv0
11

12. Besides
lower
costs,
dis-­‐intermedia9on
is
the
other
key
effect
of
new
digital
tecnologies
Viewer Broadcaster Producer Author
Reader Distributor Publisher Author
Music
Listener Distributor Author
Label
12

13. Given your background, we focus
therefore on filmed entertainment
13

14. One
Reason to
be
on
the
web
To make money
14

15. Two
Reasons to
be
on
the
web
1) To make money
2) Promote your work
15

16. Promote yourself and
then make money
through “traditional
media” 16

17. Three Reasons
to
be
on
the
web
1) to make money
2) to promote yourself
3) to familiarize with the
tools and understand the
dynamics
17

18. Who
am
I
quo9ng?
18

19. http://www.youtube.com/watch?v=7WJXHY2OXGE&list=LPruYjC5ZD-Do&index=5&feature=plcp
19

20. Once
upon
a
9me...you
had
to
convince
channel
commissioners
and
buyers
to
choose
your
9tle.
Now
you
can
go
directly
to
the
viewers...
20

21. ...but
viewers
are
merciless:
“If
you
want
uncondi9onal
praise...ask
your
mother” 21

22. Online audience can be as bad as
that of live entertainment
http://www.youtube.com/watch?v=RdR6MN2jKYs
22

23. To make Money
Now Possibly in the future
Pay per view TV sales
The User Pays
Download
(for your film)
Crowdsourcing
Advertising Investor Pays
(for your viewers) Sponsor
Affiliate
Programs Co-Pro
e-Commerce
(es. Licensing)
23

24. Pay Model:
Several Platforms available
...but not so much in Europe/Italy
24

25. 25

26. 26

27. For video, most platforms use “Aggregators”
Producer Aggregator Platform
27

28. What does an “Aggregator” do
Encode for different platforms
Chapter breaking
Tagging
(can be long and
Quality Control processing painful e.g. with I
Marketing (?) Tunes)
Contract Management
Reporting
They act as “filter” for the main platforms
(editorial quality, technical process) 28

29. The middle man!
...is back?
29

30. How the money goes - “traditional”
Example
$500-2500
Encoding/Processing/Marketing
$4,9 $2,1 $2,99
30%
70% $7.0 30%
$9,99
70%
Producer Aggregator Platform
30

31. 31

32. 32

33. Indieflix is both an aggregator and a plarform
33

34. 34

35. 35

36. 36

37. How the money goes - “New”
$1,295
One time fee
$2,99
$7,0
100% $7.0 30%
$9,99
70%
Producer Aggregator Platform
37

38. 38

39. 39

40. Free Donations are another option
40

41. 41

42. 42

43. The Yes Men who fix the world
2009 documentary film about the culture jamming
exploits of The Yes Men. The movie has been sued by
United States Chamber of Commerce
It documents the following projects:
■ US Chamber of Commerce and climate change
■ Dow Chemical and Bhopal
■ ExxonMobil Vivoleum
■ Halliburton Survivaball
■ HUD and post-Katrina public housing
■ New York Times hopeful future edition
$26,000 collected through VODO. 700,000 views.
$5000 od DVD sales in two months
43

44. Others are following the “donation” model
44

45. It is possible to get awy from platforms and “do it your way”
45

46. 46

47. 47

48. 48

49. 49

50. 50

51. 51

52. 52

53. 53

54. 54

55. 55

56. 56

57. 57

58. 1. Make it easy and obvious. People come to your site because they want to watch
your film, so help them do that
2. Include a Preview. Dynamo lets you add a preview video to the player, so
viewers can watch your trailer before paying.
3. Sell it! In order to take advantage of online distribution, you need to take it just as
seriously as you do any other distribution.
4. Online Sales Require Online Buzz. Find your audience online and engage them!
5. Build a Facebook App! A custom Facebook app lets you promote your film to all
of your followers and fans,
6. Publish Everywhere. Dynamo Player is great for selling your film on your own
site, but it’s also great for selling your film elsewhere.
7. Relationships Beat Affiliates. Reaching out to your fans directly and asking
them to spread the word is far more likely to engage dedicated evangelists.
8. Sales happen on weekends. Every Friday night our sales numbers get a bump
that continues until Monday morning.
9. Bonus Material. Dynamo lets you include all of the video extras you would
normally put on a DVD.
10. Pricing Is Key. The best sales results for feature films have been $1.99 to $4.99,
with a major drop in sales above and below those prices. 99¢ is great for short films,
but at 99¢ your masterpiece feature may appear to be nearly worthless. Meanwhile
anything over $4.99 has a hard time competing with the sea of Hollywood
blockbusters available for rent at much lower prices.
58

59. To be considered (seriously)
70% of something... or 100% of nothing?
59

60. Live Performances at set times...???
60

61. Good Representation for documentaries
61

62. Typical Revenue Share split
from platforms
♣ iTunes 70/30 with 70% going to the filmmaker
and 30% going to iTunes.
♣ Hulu 50% of the advertising revenue goes to the
filmmaker.
♣ Amazon VOD pays the filmmaker 50% of what
they collect.
♣ Netflix purchases a licence for your film for 1 or
2 years and they can play your film as many times
as they like during that period of time. Licensing
fees vary on a film by film basis.
♣ VODO 75% of sponsorships raised (donations)
go to the film maker and 50% of profits from
merchandisingt 62

63. There are several Advertising
funded platforms
63

64. A new Job for the Producer
Designing
Writing
Formatting
Producing
Promoting
Selling
...for online and “mobile” audiences
64

65. Producing for the web
1. Thirty seconds on TV translates to eight seconds of
Web video. That means you have to be succinct—short
beyond short. Make every second count.
2. Producers often don’t understand the impact of file
size and compression algorithms. Shooting busy
backgrounds, pans and zooms increase your file size. By
the time your video is shared, reposted and bounced
around a few times, you’re footage will lose resolution.
3. Web videos play on the tiny screen. What is fine on a
television is too busy for Web video. Use simple shots.
Zooming around and special effects will make your viewer
queasy and confused.
Source: Merriam Associates 65

66. Producing for the web
4. The computer mouse is dramatically faster than
the TV remote. You have to grab attention fast.
5. People are watching your video inches from their
faces, not from across the room. Shoot close up and
create a close feel.
6. Quality content doesn’t mean slick production—
it means engaging and rewarding content. Slick
production can sometimes come across as inauthentic,
especially if you offer more glitz than content.
7. One idea per video. Get to the punch line fast. If
you have three ideas, do three videos. Three focused
sixty-second videos are better than one three-minute
video.
Source: Merriam Associates 66

67. Producing for the web
8. TV is all give and no take. Web video should be
part of the conversation. Allow comments. Let people
share your content. Web video is social.
9. Web video is non-linear—viewers can meander
wherever they want, whenever they want. Produce
video that doesn’t try to fence people in.
10. People accept, even expect low quality video on
the Web. They will not tolerate poor audio. With
high quality earphones on their heads, people will
click away from poor sound.
Source: Merriam Associates 67

68. 68

69. 69

70. The project is told on a variety of platforms
including a TV documentary, a web documentary, a
book, an iPhone app, and an exhibition in Paris.
Viewers of the web documentary are asked to sign
in through Twitter, Facebook, or asked to make an
account on the film’s site in order experience the
story.
The storyline mimics a road trip, as you are
encouraged to take detours and learn more about
the background, news, and other additional
information about prisons in America.
70

71. Online Marketing and
Promotion
It’s key
No need to say more!
71

72. Web Site vs 3rd Party Platform
(Es. You Tube)
Why not both?
72

73. As in retail the secret is:
Location Location Location
73

74. Location Location Location
74

75. There are several possible
platforms, but You Tube is
dominant
75

76. To become Partner
Own Rights Willingness to
monetize
Steady flow of
videos Grow subscriber
base
Comply with the
rules
Increasing views
04/26/11 8

77. ADV Formats are not invasive
Text/ Overlay + Spondored
Image Overlay Banner InStream Video Video
Image Video

78. In-stream (Pre-roll) (short-form)
Format (YouTube) Metrics
• 15 sec video pre-roll • Impressions, clicks
• No skipping • Mid-points, completes
• User sees max 1 pre-roll every 7 minutes
• 300x60 companion
*Not available to advertisers who buy through the AdWords auction

79. InVideo Overlay
Format Metrics
• 480x70 overlay + 300x250 companion • Impressions, clicks
• When overlay is clicked it can:
• Spawn a video within player Pricing
• Click off-site
• 5 - 10 depending on segmentation
• On YouTube, video will run as post-roll, if ad not
clicked*

80. 300x250
Format Metrics
• 300x250 • Impressions, clicks
• Rich media*

81. Other advertising you may see on the watch page
Promoted videos
• Interleaved with text ads
Call To Action
• Advertisers can run a Call To Action on their own Promoted Video
Only appear if no
ads are sold
Click To Buy
directly
• Buy the original music and video at the click of your mouse
Text ads
• AdWords text ads contextually targeted

82. Interest Based Advertising: Categories Available
Pet Lovers Fitness Buffs Mothers
Auto Buyers Beauty & Personal Care Home Buyers
Auto Enthusiasts Green Consumers Job Seekers
Basketball Fans Food & Drinks Brides-To-Be
Parenting Mobile Users University Students
Sports Fans Financial Information Seekers Outdoor Enthusiasts
Golfers Credit Cards Interest Fishermen & Hunters
Motor Sports Enthusiasts Mortgage interest Shopaholics
Racquet Sports Enthusiasts Insurance interest Luxury Goods Consumers
Football Fans Loan Interest Arts & Culture
Winter Sports Enthusiasts Technology Consumers Celebrity
Cricket DIYers Comedy Fans
Rugby News Readers Photo/Video Buffs
Water Sports Political Interest Video Gamers
Entertainment Buffs Travel Enthusiasts Web Developers
Movie Goers Small Business Owners Household Decision Makers
Music Lovers B2B Business Decision Makers
Classical Music Lover IT Decision Makers Extreme Sports Enthusiasts
TV Fans

83. Revenue Equation
Revenue = CPM X Video Views
•Higher prices on “much higher” on You Tube
own portal (?)
•No Rev. Sharing • from 5x to 20x
...no cannibalization so each Euro/$ is incremental

84. Video usage concentrates on first 10 days but
the “tail” is very long

85. How do you get paid?
YouTube AdSense Monthly
Sales Sales Payment

86. Sponsoring Opportunities

87. A success: Simon’s Cat

88. You Tube as “launch pad”
88

89. An Integrated System
89

90. You Tube links back to the web site, website
embeds videos streamed on YouTube
90

91. Simon also published books...
91

92. ...and licensed products
92

93. Facebook is a key tool for promotion
93

94. ...but fans can also be a source
of revenues
“Organic Grow” 2% mese
Click Rate 50%
Each view monetized by
YT @1,5 Euro/CPM
94

95. Economics Fan Base Facebook
160.000
140.000
1 update/day
120.000
Revenues Euro
100.000
, Cumulative
80.000
60.000
40.000
1 update/week
20.000
0
1 2 3 4 5 6 7 8 9 10 11 12 13
Months
1 update/week
1 update/day
95

96. Thumbnail!!!
(if you go and check it...it’s not what it seems)
96

97. Google’s AdSense Referral Partner Program
Google can help you enhance your
value proposition to your bloggers
through Google AdSense
– Google AdSense is a quick and easy way for
website publishers/ bloggers of all sizes to display
contextually relevant, unobtrusive ads on their
blogs and earn money.
– Every time one of your bloggers qualifies as a
completed referral, Google will pay you a bounty.
Google AdSense
at Work
Google Confidential 97

98. Adsense Reaches millions of users as they read content online
Google scans a page,
interprets its content and
serves relevant ads
Relevant ads
Targeted in real-time
Recipe for Roasted
Garlic Pasta Sauce
98

99. Google Content Network
Google Content Network
Google
Advertising Network* • Reaches 548 million worldwide Internet users, more than
any other property or network
• Tens of thousands of advertising auctions occur every
second to select and serve relevant ads
• Hundreds of thousands of worldwide advertisers and
publishers
Google
Content
Network
Hundreds of thousands of worldwide content partners
*Google Advertising Network = Google properties + syndicated search + Google content network
Sources: comScore Media Metrix (August 2007); Google internal analysis

100. Become an AdSense Referral Partner in 3 easy steps
• Fill out an online form - it takes just a couple of minutes
– http://services.google.com/inquiry/referral_apply
• Google will provide you with a special AdSense link for your site
• When your bloggers click on the Google AdSense link, sign up for AdSense and qualify as
a completed referral, you earn $20
For more information
• Visit www.google.com/referral
• Terms and conditions at http://www.google.com/referral/terms.html
• Referral Program FAQs at http://www.google.com/referral/faq.html
• E-mail Jessie Ghai at Jessie.g@google.com
Google Confidential 100

101. Pay Per Action
Set cost-per-action (CPA) Publisher chooses
Ad shows on publisher’s
value for a specific action your PPA ad and
site
on your site places it on his site
User clicks on User completes Pay for completed
ad action action(s)

102. A preliminary “back of the
envelope” calculation
Ricavo Medio Netto da 3 a 15
per Pagina Vista (Euro/1000 pagine)
Pagine Ricavi
1,000 5 Euro
10,000 50 Euro
100,000 500 Euro
1,000,000 5,000 Euro
102

103. So who is your market?
Then Now
A few buyers in Cannes
103

104. Today IPAD, IPhone are a channel of
increasing importance
104

105. Huge installed base and sales growth
760 Million
Devices in 2012
760 Million
Devices in 2016
105

106. The two platforms have
different approaches
106

107. The “Business Model” is pretty
standard
107

108. • Distribution: Native apps are distributed through app stores and
markets controlled by the owners of the platforms. HTML5 is
distributed through the rules of the open web: the link economy.
• Monetization: Native apps come with one-click purchase options
built into mobile platforms. HTML5 apps will tend to be monetized
more through advertising, because payments will be less user-
friendly.
• Platform power and network effects: Developers have to
conform with Apple's rules. Apple's market share, meanwhile,
creates network effects and lock-in. If and when developers can
build excellent iPhone and iPad functionality on the web using
HTML5, developers can cut Apple out of the loop. This will reduce
the network effects of Apple's platform.
108

109. Example of interactive e book
https://www.youtube.com/watch?v=LV-RvzXGH2Y
109

110. 110

111. 111

112. But huge number of apps in
the stores
112

113. Difficult to stand out in the crowd
113

114. Users are again the key to
success
114

115. Affiliate Programs
6% del ricavo
Ricavi
fino al 15%
dipendono dal
valore della
6-8% vendita o ARPU
del cliente
5 Euro/Abbonato procurato
115

116. Earn through affiliate programs
116

117. Licensing&Merchandising
117

118. 118

119. Also other services : es. Zazzle
119

120. You decide how much to charge
for your work (royalty)
120

121. ...but the user always has the final
word: to buy or not to buy
121

122. Basically we sell “traffic”
122

123. “Eyeballs”
123

124. In entertainment success is highly
unpredictable and not easily
reproducible
124

125. Now it’s your turn!
Good Luck!
125

126. Thanks!
126