John Malec is probably best known as the founder of Information Resources, Inc. (“IRIC”), the data collector upstart that grew to $600 million in sales while disrupting AC Nielsen’s 40 years of dominance in data tracking within the U.S. Now Malec is back as CEO of Visible Spectrum Inc. (VSI), a firm determined to bring video to the middle-market masses. MME recently spoke to Malec about the opportunity he now sees emerging in video marketing and customization.
Malec: Cisco reports that by 2017 almost 70 percent of the total bandwidth of the Internet will be video traffic. It’s clearly an important part of where marketing is headed. We view the opportunity in three segments: the first is the programming area, which is movies and TV sitcoms; next comes social, so in other words, YouTube, Facebook, etc.; and then there’s custom messages, which are all of the advertisements that are put together. These are by their nature generally custom, and this is where our technology can create any kind of short-form video content. We are particularly good at creating video that is 2 minutes or less in length. We become less advantageous when you get into long-form messages.
MME: Why should businesses find this approach to video content creation useful?
Malec: There are a number of general market problems that we solve. For instance, take a Walmart or a Best Buy and imagine stores outfitted with 1,000 screens. Imagine that all of the screens are using the same content loop, and that the loop is 10 minutes in length and a new one is created each week. We have to create 520 minutes of content each year to run the network. Now, let’s say that 10 percent of the time we want to target at the individual screen level. Well, the total number of minutes of content we have to produce is the number of screens — 1,000 — multiplied by 52, which equals 52,000 minutes of content, so there is a massive increase due to targeting — and “targeting” is of course the buzzword in marketing these days. There’s a massive increase in the amount of content that needs to be created because of targeting. The other issue that is somewhat similar to targeting is local customization.
MME: Can you give us an example of local customization?
Malec: Let’s take a car maker. It asks, “How can I customize ads for my dealers?” Well, dealers don’t want ads just about the cars. They want to advertise their inventory, an event, etc. With Visible Spectrum, the dealership can easily customize their message for as little as $125.
MME: We’ve been discussing store solutions, but you must also be watching the video opportunity escalating on the Web, and how video can be used to drive inbound marketing strategies …
Malec: We’re not only watching it, we’re counting on it. Forrester says that you are 53 times more likely to be on the first page of search results if you have video on your home page. The basic business prop is that we can beat the price point of rich media and we can do it with television-like quality. It’s entirely Web-based, so you don’t need to download any software or have a special computer. Anywhere in the world you have an Internet connection, you can work with it. Anyone with general Windows-level knowledge can use the platform to create a video message.
The samples I’ve provided cost about $150 each including the cost of the third party stock. You may want to include them with the article.
MME: We’ll see what we can do. (See below.)