The usage of online video for marketing purposes is rising and media companies and advertisers are enthusiastic about it. According to a December 2013 study by Forrester Consulting, the majority of publishers predicting higher CPMs for the future. Advertisers, agencies, and media companies differ on the benefits of online video and exactly how the medium will evolve over the next few years. Will the shift to streaming video continue ?
For example, respondents from media companies and agencies are optimistic about TV viewers’ interacting with supplemental content on a second screen whereas advertisers are skeptical about this. Besides, advertisers say they are attracted by the promise of targeting and better communication, whereas their agencies see a greater benefit in the medium’s interactivity and improved audience attention rates.
Overall, large majorities of respondents across all three groups say video viewing will continue to shift to streaming sources. Media companies and agencies see a major move to Web-based viewing whereas advertisers are more optimistic about on-demand services from cable and satellite providers.
The article on Marketingprofs, which reviews the research, states that there are some challenges for online video in the future as well. According to the advertisers, the top two challenges with online video are measuring audience across a range of devices and understanding cross-platform behavior. Where Media companies worry about these issues too, they also fret over managing a myriad of technologies and building capabilities to target individual viewers.
What do you think is the biggest challenge for the online video future?