Amazon Takes On YouTube With User Generated Video Platform
Recently amazon announced plans to release a user generated video platform called Amazon Video Direct. Amazon have offered a video service for some time with Amazon prime, however the online e-commerce retailer looks set to diversify its online video offering by allowing user generated video market to generate additional revenue. The new service will allow users to upload their own videos to Amazon’s Prime Video Platform and generate advertising royalties. Users will have a number of options available to monetize their videos including rent, own or free-ad supported distribution rights.
Several other publishers including Google, Facebook and Twitter have seen huge increases in revenue from increases in video advertising in recent years. Video ad spend in the UK was over £711 million last year (IAB 2016) an increase of 50.7% YOY.
This is expected to grow further with the increase in online traffic from mobile increasing. 55% of people watch video online every day and 57% of all consumer online traffic is from video. this is expected to rise to 79% in 2018 (Hubspot 2015).
Many in the advertising community are watching this update by Amazon with a close eye. For many advertisers video is primarily used as a branding tool however this is also seen as a key point in the conversion process. 64% of shoppers say that YouTube influences their purchase decisions and 21% of users are more likely to buy a product if they see a video ad online. (Google, 2014).