Clash of the Digital Media Titans
The digital media battleground will continue to heat up this year as major players like Amazon, Apple, Microsoft and Google roll out advanced online video products and services.
Quoting from a recent GigaOm article:
The delivery of digital media has become an ever-hotter battleground as more users demand that their music, video, photos etc. be delivered not only to their PCs, but their TVs and mobile devices of choice. Clearly, tech giants Apple, Google, Microsoft and Amazon see this an increasingly high-stakes game and are duking it out accordingly.
The tech press loves a hardscrabble, sock-em-up narrative, but expect the gloves to come off for real in 2012.
This trend made our year end list in 2011 and still deserves a top spot in 2012.
A recent Deloitte survey “found that 9 percent of people have already cut the cord and 11 percent are considering doing so because they can watch almost all of their favorite shows online.” Additional research from SNL Kagan posits that 10% of all U.S. households will cut the cord by 2015. While there is a lot of hype on both sides of the cord cutting debate, it is clear that this trend is real and will continue to impact cable operators and multichannel providers in the years to come.
Big Data Is A Big Deal
The Wall Street Journal recently looked at how Big Data is impacting businesses. “These [new] systems can now chew through billions of bits of data, analyze them via self-learning algorithms, and package the insights for immediate use.” Just as the tablet and smartphone explosion led to an increase in online video consumption in 2011, the arrival of intelligent analytics will deliver content more effectively in 2012.
Online video analytics will help publishers stop guessing at monetization strategies and start measuring and refining results in 2012.
Online Advertising Continues To Grow
Overall Internet advertising should continue to increase in 2012.
According to Ofcom, online advertising in the UK “is almost on a par with television advertising, representing 29% of total advertising spend compared to 30% for television advertising.” Online video advertising will also continue to expand. Break Media found that “in the coming year, 68% of advertisers will increase the share of online display advertising devoted to video ads—from 27% to 35% of their online display budgets.”
2012 will see more targeted and more profitable video advertising, with more ways to monetize online video ads.
This Time It’s Personal
As publishers, advertisers, devices and consumers collect, process and analyze massive amounts of data, blind broadcasting gives way to informed, one on one micro-casting.
2012 will be the year that viewers interact with ads that they actually want to watch and social EPGs and content recommendation engines will serve up programming that matches individual tastes. This year the confluence of mobile broadband, easily accessible content, big data, social media, and smart mobile computing means that television will deliver on the promise of personalized video content.