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Viewing report
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Future Developments in Video Advertising
Inside Digital Media, Inc., July 2009, Pages: 75
TV shows and movies are migrating to the Internet and consumers are learning how to watch them on their TV screen. Eventually they’ll not be satisfied until unlimited Internet access is available at their TVs. Furthermore, they’ll have a decided preference to view the shows for free as opposed to paying a fee for subscriptions, rentals, or purchased downloads. Thus it’s crucial that future video advertising be effective enough to adequately compensate content providers.
Report Objectives: There are six objectives.
First, is to provide a quantitative five-year projection of advertising revenues. Second it to discover how direct access to the Internet as a medium might change sponsor commitments to advertising. Third, is to assess whether Project Canoe is an adequate competitive response to Internet video advertising. Fourth is to examine the relative merits of future video advertising options such as overlays, ad-rolls, hot-spots, branded players, direct media bypass, product placement, and dedicated sponsorships. Fifth is to analyze how transformational effects such as the erosion of historical silo barriers will impact advertising. Sixth is to determine how a video-centric Internet may change the characteristics of Search and other types of advertising.
Highlights:
- Among the major conclusions are:
- The Great Recession of 2009 will cause a drop in aggregate advertising this year, followed by a weak recovery next year and a modestly declining trend for several more years as sponsors radically re-examine long-held assumptions.
- Sponsors will reallocate marketing dollars to increasingly use the Internet as a direct media connection to consumers thereby leaving a smaller share for the advertising industry.
- Internet advertising will rise from 8% of the total in 2008 to 22% in 2013.
- The combined categories of Digital Video and Rich Media shall rise from 10% of Internet advertising in 2008 to 24% in 2013. Together the two sectors will increase at a 40% compounded annual rate.
- Long-form video will ultimately migrate to the Internet. Project Canoe shall fail to meet the challenge of Internet video advertising
- Consumer interaction with video on the TV screen will be triggered by the emergence of comfortable or familiar interface standards.
- The “Search” function will remain important in a video-centric Internet and click-through video commercials will become a Search-ad option.
Who Should Buy:
- Video program providers seeking to understand how they can adapt to a future of ad-supported long-from video on the Net.
- Advertising agencies wanting to learn what types of video advertising will be effective in the future.
- Media buyers desiring to learn the kinds of video ads that are optimal on future media forms.
- Cable TV executives wanting to learn how to adapt to Internet Video and seeking to evaluate the prospects for Project Canoe.
- Television executives seeking ways to monetize their shows on the Internet.
- Chief Marketing Officers desiring to learn how the Internet will change video advertising and create opportunities to connect directly with customers and prospects.
- Internet video websites seeking to understand how to maximize advertising revenues.
- Venture capitalists who want to know how Internet Video is going to be monetized.
- Online merchants seeking to understand how consumers will learn to become comfortable executing transactions directly from their TV.
- TV set makers wanting to know what interface standards consumers will require to make Internet-connected TVs popular and to foster click-through transactions
- Computer manufacturers wanting to know how consumers are going to get Internet connection to their TV and how they are going to use it.
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