Viral Ads: How Much Is a YouTube Click Worth?

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Aug. 28 (Bloomberg) –- Thinkmodo Co-Founder Michael Kravicka discusses the art of the viral video and digital marketing for movies. He speaks on "Bloomberg West." (Source: Bloomberg)

Youtube campaigns.

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Michael, this video, i remember it when it came out.

It is astounding.

Have big an impact did the video have on the marketing of the movie?

There were other marketing done.

But when it comes to digital marketing and youtube, it was extremely effective.

We are in the business of sharing content that promotes the movie.

We reached about dixie million people on youtube alone are the way we measure success is not by the view count on the video but the free media we can generate with it.

News morning stows -- shows talk about it.

It created huge was for the movie and did really well.

I had to go back and look it up.

I did not watch the movie but i did see this video.

How much does that matter?

Are the views converting into customers?

A good question.

It matters a lot.

Especially reaching the target audience for the movie, people watching it and tweeting about it on twitter, they are plugging in the message, check out this amazing promo for the movie.

It starts out as a video, but hey, this is a clever ad for the movie.

It is done in an engaging way and that is what we do.

We create high-quality content and people do not realize their sharing and add.

New york city, the time square iphone hack.

What goes into creating one of these things?

Is there a formula?

A lot of people try to make a science out of it and create a formula out of it and replicate it and modify it.

What it really comes down to essentially is a great idea and a great execution that comes with it.

There is a right way and a wrong way.

We do it with highly original ideas and without buying any media.

Everything is organic.

We do not pay for placement revenue and we do not buy views.

Everything is organic and it is designed to go viral.

It has the right ingredients and recipe.

Your last two videos, hundred million views.

Tv is still getting 67 billion dollars worth of advertising.

How much will that change and how fast?

We would like to have a chunk of that, i will tell you that.

We are seeing a big shift in the field.

The digital marketing field is being taken seriously more and more urine more people are recognizing agencies and movie studios where there is great value in doing this.

Also, it is different.

It is something shareable and it did not exist before youtube was created in 2005. it is the way to go.

I cannot help but laughing at some of these videos you produce.


How much does a viral ad campaign like the one with kerry, how much does something like this cost?

It is based on the complexity of the project.

Usually, in our price range, things start at $500,000 and go up to $1 million.

We like to do things for real.

One of the signatures of our videos is that we do not do cgi.

We actually do it for real.

We create a real stunt, the real thing, and it really flies.

That differentiates us from others.

People like to see the setup.

It does really well.

How long does it take?

It sounds intensive.

A great question.

Sometimes we kind of have to step in and save the day and then we have a limited amount of time to pull something off.

In most cases, we prefer a 12 week turnaround time.

We are fast production wise and post production wise, we do everything in-house.

We use a pool of talented people to help us create these things.

We are pretty quick.

I cannot wait to see the next viral video.

Thank you for joining us.

Now for a look at what is coming up at the top of the hour, mark

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