The Ever Changing World of Online Video
Over the last several years, the Internet has begun to drastically change the world of video content. More and more people are ditching their traditional cable packages for cheaper, user-friendlier, online streaming programming. According to comScore,181 million U.S. Internet users watched an astounding 37 billion online videos in March 2012 alone. What’s more, according to Cisco, by the end of 2015 Internet videos will account for 65 percent of consumer Internet traffic. With such trends, online streaming programmers are seeing an opportunity to capitalize. Netflix, Amazon, Hulu, Google/YouTube, Yahoo, Microsoft and AOL, among many others, are developing their own original content rather than just re-broadcasting traditional television content. Although this is not necessarily a new trend, it has been picking up quite a bit of steam and advertisers are beginning to take note.
Last week marked the debut of Digital Content NewFronts 2012 (DCNF), a two-week series of events that will showcase online programmer’s original content to advertisers. Hulu, Microsoft, AOL, Yahoo, Digitas and Google/YouTube have joined together to bring order to the once chaotic world of online ad buys. Each partner, along with a handful of other online streaming programmers, will host their own event over the next several weeks to showcase their original content.
Online video advertisement was approximately a $2 billion business in 2011 according to eMarketer. With the emergence of DCNF, it will be interesting to see if these digital programmers can tap into the $60.7 billion spent on television advertisement, especially, considering they are holding their event three weeks prior to the television upfronts.
While traditional television is certainly becoming more interactive, as we discussed in our post from last year, ‘When TV and the Web Truly Merge’, we’re still in the early stages of this shift. From a marketing perspective, it’s crucial that we’re at least aware of these trends and boldly willing to experiment with newer models when appropriate.
How frequently do you watch online videos? Would you ever discontinue traditional cable to replace it with online streaming content?