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How video will change in 2013
In November more than 180 million US adults tuned in to online video, consuming about 40 billion clips and more than 10 billion advertising clips. Those numbers have more brands looking at online video as a way to offer more content for less cost. But online video is changing almost as quickly as the traditional television remote. Here's what you need to know:
Kristina: What will change in the online video landscape in 2013? Will YouTube still rule the roost?
Jay Miletsky, CEO, MyPod Studios: Predicting that YouTube won't rule the roost would be like predicting that Coke or Pepsi won't be on top of the cola market in the coming year. Of course they'll still be on top, at least in retain categories. Clearly, when it comes to amateur videography, they'll remain on top, and maybe most importantly, they'll be the leader in brand recognition - when the average Web user thinks of online video, YouTube will still be the first site they think of.
The changes that will most likely happen will probably be somewhat invisible to the average viewer. We'll start to see a shakeout, where some of the less profitable video networks begin to fold (even in a growth industry, investment dollars are bound to be harder to come by this year), while at the same time, we'll see marketers becoming more sophisticated in how they manage, produce and distribute their content, improving the overall online video landscape.
Kristina: Do you see online video advertising increasing or decreasing in 2013? Why?
Jay: From the perspective of advertising, this is going to be a good and bad year, and it's all related to politics. So for now, the "fiscal cliff" deal is done, although its hardly complete. But there's a looming debt ceiling battle, and then the battle over how to reduce entitlement spending...all of which will ultimately result in higher taxes and continued uncertainty. When that happens, brands will end up slashing their budgets, starting with marketing (which is usually among the first to be cut).
Believe it or not, this will end up being a good thing for the online video industry: with less money to spend, marketing directors will cut out the more expensive media, such as TV and print, and divert those funds into online campaigns, which is arguably more affordable and cost effective, and brings along the benefit of immediate results via clicks. We'll end up seeing a large increase in the ad supply.
More from Jay and MyPod Studios on Monday, including the types of content he believes will take 2013 by storm.
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