Industry experts herald the beginning of a year with predictions of what's ahead. Will Richmond, president of Broadband Directions, a research firm that focuses on broadband video, announced seven video trends for 2007, which range from the growth of ad supported video to the success of Apple's iTV box, which will allow consumers to play broadband content traditionally seen on their computers on their televisions.
"Ad supported video dominates, at least for now," Richmond said. While many premium content vendors from Apple to AOL have tried the paid route, the ad-supported model "is being embraced most enthusiastically. There is a huge interest from advertisers and their agencies, an easy migration path for media companies to leverage current skills and a disproportionate desire by consumers to get free video versus paying for it," he said.
Richmond predicts that in 2007 "ad volume and usage will increase and targeting will improve. Creative executions will also improve. In 2006, primarily repurposed TV spots were used, but there will be a move to produce more specific creative because content providers want to improve the consumer experience."
Richmond predicts success for Apple's iTV because "TV is still the preferred viewing device for just about everyone. If someone could make an affordable, easy-to-install box that unshackled users from their computers, allowing them to easily bridge the PC/broadband world with the TV, there would be a market for such a product."
But the paid content approach Apple uses for iTunes won't work for iTV, according to Richmond, who said an ad-supported video model should be its "core-value proposition".
Exactly what content should be available through iTV is less clear, he said. "A key selection criterion is video that is either NOT currently available through cable or satellite. Many video content providers would salivate at the opportunity to be accessible on consumers' TVs. Plus broadcast and cable TV networks would love a way to get their broadband-only webisodes and other broadband channels all the way to the TV. But the most tantalizing content deal would be one with Google/YouTube. Consider how many YouTube devotees would love to get convenient access to this content on their TVs."
The introduction of iTV will boost broadband video advertising because it would generate more broadband usage, Richmond said. Pre-roll and post-roll ads would run on iTV, much as they do on the web because "the economics and delivery don't change because the video is displayed on TV," he said.
Richmond also sees 2007 as a year when brand marketers will increase their use of broadband video to play long-form content that "offers an immersive experience that combines information about the product with video. It allows marketers who have used :15s and :30s to blow it open and offer different length segments and any number of segments. They immerse users in broadband and go beyond what traditional TV spots offer them."
Richmond cited examples of recent long-form campaigns, including Nike's JogaTV, Ford's "BoldMoves" and Krups Espresso shorts. He thinks the Super Bowl will present opportunities for brand marketers to execute cross-platform promotions that extend their TV campaigns with long-form broadband. The campaigns will allow advertisers to "expand the impact of their initial $2.5 million 30 second outlay by engaging consumers well after the game-ending whistle blows."
By Ken Liebeskind- Reported in Shoot Magazine January 10, 2007
