JibJab Doing a Million Transactions a Year

jibjab

JibJab, the online video pioneer, said today it completed more than a million transactions over the past 12 months. The milestone was reached as JibJab increasingly moves to sell personalized videos, pictures and other services directly to consumers; its business used to be primarily driven by advertising.

JibJab’s most popular offering is its “Starring You” line, which enable users to upload pictures of themselves and friends to create personalized interactive video and pictures. Since its launch, JibJab says more than 150 million heads have been uploaded to its platform, with personalized videos and images viewed more than 400 million times.

JibJab created its direct-to-consumer model, which it rolled out in the fourth quarter of 2007, after the ad market failed to be as robust as it needed to support its business. In a video interview with CinemaTech blogger Scott Kirsner earlier this year, the co-founders said that advertising doesn’t work for online video. Instead, over the past several years JibJab has shifted to selling annual subscriptions that give its user unlimited access to its e-cards and “Starring You” products, while also accepting micropayments for individual digital downloads on iPhone and other devices.

While JibJab still does a number of sponsored projects, such as its annual ElfYourself campaign with OfficeMax or a recent partnership with LucasFilms to promote the 30th anniversary of Empire Strikes Back, the direct-to-consumer business is booming.

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