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What to expect on the video front in 2014
The video space has been a hot ticket throughout 2013 - pre-roll inventories have regularly sold out and more consumers are tuning in each month. But, viewers are also demanding more creative and personalized content and that goes for advertising as well as entertainment. Our experts weigh in on how they believe video will change - and possibly improve - 2014.
To date online video advertising has relied on cookie-based technology and pulled-from-television models. But the online video space is changing fast because of consumer demand.
"The fact is, video ad models in their current format are no longer relevant. In fact, the future of video advertising is contextual, not personal," said Irfon Watkins, Coull CEO. "In 2014, publishers will start to mine their vast repositories of inert content and turn it into a dynamic source of ongoing revenue. Archived video content becomes new inventory, creating an entirely new revenue stream at no extra cost to the publisher. Meanwhile, advertisers benefit from a completely new approach to the way in which their message is delivered. Sophisticated targeting and segmentation allows brands to direct consumers to useful products and services that are contextually related to what they are viewing, rather than things they have viewed in the past."
Meanwhile, an expert with DG suggests there will be a significant increase in original programming hitting the online space in the New Year, but not from networks. In 2014, the programming will come from the likes of Amazon and Netflix as they work to bring more content to hungry viewers.
"This is going to have a dramatic impact on what we all consider "premium programming." Even though SVOD is commercial free, you can expect Hulu and others to front similar sized budgets for ad-supported channels as the growth of mobile and the continued demand for tablets lead to increasing rates of viewership off-TV," said John Douglas, Sr Product Marketing Manager, DG. "But don't assume this means digitally-sourced original programming won't be viewed on TV. Expect Xbox, Roku, Hulu, Google, Apple and maybe even your cable provider, to make this programming available on your TV. Today we still draw a line between theatrical television and Digital entertainment - Tomorrow we won't."
Expect this new crop of programming to push all video providers to tell better stories - both in programming and in the advertising supporting the programming. Douglas believes as the video space evolves into an experience-based medium, the winners will be those providing top-line programming and a better viewing experience.
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