The future of streaming video – four predictions for 2013. Last week’s multi-year licensing agreement bombshell between Disney and Netflix was a capper to an already dynamic year for streaming media. Clearly we’re at an exciting crossroads, fueled by “make-ups and break-ups” that constantly reshape the industry. Given the activity of the last four quarters, here are a few things to look for in 2013. Globalization of professional content The act of taking premium content across borders to reach new audiences has proven to be a boon: It generates meaningful incremental digital dollars through subscription services; it legitimizes a content experience that previously had been dominated by online piracy; and it builds momentum for content and brand equity for the coming years.
Ironically, it is the home market that sometimes moves the slowest. Monetization via subscription Subscription will continue to be the dominant business model. What hasn’t changed is the demand for professionally produced content, which still costs just as much to create. In-Stream Video Ad CTR Far Higher Than Banners, Rich Media in H1. An August 2012 MediaMind study found the same 0.1% CTR for standard banner ads in the US, but, a much higher 0.87% for mobile banners. Meanwhile, according to the latest report, rich media with video (0.26%) performed better than rich media without video (0.21%).
In examining the CTR differences between VAST and VPAID, the report concludes that VAST ads more actively call for click-throughs and interactions. VPAID is less focused on direct response, and also enables and captures in-stream interactions, not necessarily requiring a click-through. Viewers may also be dissuaded from interrupting their video experience by clicking on such an ad during long-form content and being taken to a separate page or site. Worldwide, as the September 2012 report details, the VAST CTR has climbed significantly over the past 5 quarters, from 0.77% in Q1 2011 to 3.05% in Q2 2012, with a peak of 3.09% in Q1 2012. In-Stream VPAID Interaction Rate Higher Than CTR Completion Rates Highest For In-Stream VPAID.
Global Smart TV Market 2011-2015. YouTube Creator Blog. VAN | Video and Connected TV Advertising News & Insights.