VideofyMe Monetizes Independent Videos
Advertising is important for independent bloggers as it is so far one of the biggest revenue sources for them. VideofyMe, a Sweden-based start-up, is trying to serve that need by helping independent bloggers monetize their original video content. With their service bloggers can create videos in browser and on the go with their iPhones (Android app to be launched soon), easily publish those videos to Facebook or Twitter and earn some money from pre-roll ads that VideofyMe provides. The start-up has been working in the Swedish market since 2009 and is now going global.
Since their launch VideofyMe received quite a lot of traction. They boast over 45,000 independent bloggers among their users, the most popular of whom earn as much as $7,000 per month through the service. Unlike bigger players on the market like YouTube, which only shares ad revenue through invites with the most popular contributors, VideofyMe shares half of the ad revenue from each pre-roll with all content-creators.
For advertisers the service offers a reach out to the young audience and the impact of TV advertising in social media. In return VideofyMe charge an average of 15€ CPM in Sweden (rates vary from market to market). Their biggest advertisers in Sweden include telecom companies like Telia, Halebop, Sony Ericsson, Tre and consumer brands like Subway, Gilette and Puma.
The company is now launching internationally to expand their reach and diversify their operations with advertisers. As Oskar Glauser, founder and COO, shared: 'Our global strategy is to work with both sales networks like Smartclip, Specific Media and Brightroll as well as with local partners like blog networks who can sell premium advertising on their own inventory.' Such deal has been finalized in Spain and negotiations are going on with partners in Germany, Italy, Denmark and the US.
VideofyMe is seedfunded by Almi Invest and angel investors like Ulf Sandberg, Christopher Muenchhoff and Patrik Frisk (now CFO at the start-up). The Swedish business side is already making profit but the company is seeking a larger investment round to help enter new markets and grow inventory.
Arguably, going global from a fairly small market like Sweden after two years is pretty late for a startup, though better later than never. The service proved to provide value to a lot of independent bloggers, the tool was improved in many respects since the initial launch and the company received acclaim from advertisers. This should help their international expansion but the road is bound to be long and bumpy.
I really hope you are completly wrong about your last sentence. We have some great stuff coming up.
Otherwise. Really nice article!
Thanks for the article! We would love some feedback on videofyme as we want to build the best video service for social media talents out there and not a Youtube clone. Let us know what you think. http://www.cekmagdurlari.com/