Ninemsn have launched a new video sharing site that they are hoping will rival the popularity of YouTube. The site, YourCut differentiates by offering video owners the opportunity to make money when people view their video (and an accompanying placed video ad) online. The catch is that it sounds like no money is actually made until a viewer clicks on the ad (meaning that MSN are probably selling the ad on a CPM model and then sharing profit on a CPC model). Video owners must make also make US$20 before they get paid.
A few of my personal comments on the site:
- This is an Australian site (and URL), why have payment in US Dollars?
- The design of the site looks very low budget and plain. I think perhaps that they are have taken the minimalist look too far in an attempt to be cool (look at the Make Money page for example).
- The focus of this site is on the “making money” part however I think perhaps there is too much focus on this given the presumably low likelihood of individuals making high revenues from the site. The problem with this model is that web users haven’t yet been trained to click on video ads and unless the ad has been created specifically for online and has a strong call to action they will treat it like any other TVC. In this model it would be great if the video ad was supported by online display advertising or a secondary way to encourage the click, sadly this opportunity has been missed.
- Lastly, despite my somewhat negative comments, I think it is good that people are trying new ways to incentivise interaction and explore video advertising further. Ultimately this will be where we all need to head and the models need to be tested.