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12 predictions for online video advertising in 2012

12 predictions for online video advertising in 2012

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Published by: Crowdsourcing.org on Dec 25, 2011
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02/03/2013

 
By Alex Rowland and Nic de Castro on December 23, 2011
As we near the end of 2011, it’s only natural to make predictions in
anticipation of the new year and what might be in store in the world of online video. During the past year, we saw unprecedented growth inadvertisers creating content-driven video in ways that elegantly put their
 brands to the top of their audience’s mind in a nontraditional advertising
format. We think 2011 was a mere glimpse of what online videoadvertising will become during the next few years.These 12 trends are our predictions for what lies in store for online videofor content producers and consumers, as well as for brands andpublishers.1.
 
The merger of Web and TV talent:
We see YouTube producerstaking on even greater impact and influence. While the emergenceof Internet fame on television will come in fits and starts
 — 
 
remember “$#* My Dad Says”? — 
TV stars will be looking to usetheir name and reputation to move across the digital transom andgain more significance in social video, while YouTube and Twittercelebrities start to make more waves on TV.2.
 
User-selected ads:
Look for more choices in video advertisingemerging across ad networks and direct-sold pre-roll inventory.While efforts around user-selected advertising have largely beenrelegated to Hulu Ad Selector, as inventory becomescommoditized and brands focus on user initiation as a metric of engagement, this type of advertising is going to grow.
 
3.
 
Branded-content production:
This is a trend that has been goingon for some time, but we will continue to see more marketers getinto original-content production. Where once only automotive andlarge consumer-packaged goods providers dared play, we will seeeducation, finance, credit, insurance, telecom and several otherscreating branded integration that not only makes the industry morerobust but also introduces challenges and standards for successfulcampaigns.4.
 
Pre-roll and broadcast interstitial inventories merge:
Foragencies, the distinction between online video content andtelevision content
will become less pronounced. With Nielsen’s
announcement of measurement service Extended Screen, whichcreates a single C3 rating across TV and online channels, expectbudgets to start flowing much more freely towards pre-roll.Unfortunately, it also means ad loads are going to increasedramatically
 — 
the other requirement of the merged measurementstandard.5.
 
Dramatically increased ad load:
With video-ad viewershipgrowing faster than video viewership
 — 
128% versus 97% year-over-year, according to FreeWheel
 — 
and budgets increasing at a
similar rate from a larger base, we’ll see an increased ad load on
sites such as Hulu, CBS, NBC and other television-centric onlineproperties. However, even YouTube will begin to see significantlyincreased ad loads as it shifts focus more toward prosumer contentchannels (see below).6.
 
Publishers are going to finally focus on video:
Even today, mosttraditional online publishers are still focused on expanding displayinventory over video inventory. As pre-roll demand grows andsales commission for direct-sold video inventory increases in
 
lockstep, expect to see much more video on publisher sites, even if it starts in display.7.
 
Pre-roll prices will continue to stratify but will level out:
Formedia buyers, pre-roll pricing will continue to see downwardpressure on the network side, as networks fight harder to gainaccess to premium avails. Large publishers are going toincreasingly look to acquire inventory through direct sales, cuttingoff some critical audiences. However, prices have generally foundtheir stasis point as network transparency has increased. Upwardpricing pressure for premium direct-sold inventory will bemitigated by a dramatic increase in video availability, as publishersbecome more effective at building a video audience
 — 
even giventhe explosion of demand on the agency side.8.
 
YouTube pre-roll explosion:
There will be a dramatic increase inpre-roll ad load on YouTube. Gone are the days in which YouTubewas viewed as a risky environment for brands. Advertisers aregoing to continue to flee to high-quality, well-lit environments, andYouTube fits the bill. Google goes to great lengths to ensureauthentic user engagement. It is building relationships withpremium channels, and it has the brand relationships to movemountains of budget quickly; Premium content is a relative term;
the audience is what’s important.
 9.
 
Crowdsourced video production is set to grow:
Crowdsourcedproduction of video, in terms of creation and dissemination as wellas consumption and sharing, will be a big deal in 2012. As brandslook for better engagement for their videos, they will increasinglyrely on influencers to sell their story. With social platforms, ham-handed efforts at viral marketing can backfire quickly. Expectbrands to bring authenticity to the table by loosening control overthe creative process.

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