2012 Online Video Advertising Forecast – Industry Experts’ Predictions

2012 Online Video Advertising Forecast – Industry Experts’ Predictions

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At the same time I sent out my questions about how 2011 went down for online video advertising I also asked the industry luminaries what they thought would be big in 2012. Across the board in both video and ads I think that politics will be a major factor, after all, it’s a quick, easy way to reach the masses and with more people watching video online than voting in the last presidential election, it might be the best way to get those people out to the polling stations.

Some other things I think that will continue to be major drivers include contextual targeting of content for placement on complimentary videos and… connected TV advertising. It sounds crazy but let’s face it, connected TV is probably the way that many will start to head whether through set top boxes, OTT solutions or just plain connected TVs. At least four major TV makers have Google TV options coming (LG, Samsung, Sony and Vizio).

With it will come a whole new facet of video advertising because it may allow for interactive advertising often seen on the Internet, and usually touted as a major benefit of online video advertising, but specifically designed for TV viewers and interfaces. TV will become a lean forward experience thanks to all of this new interactivity and Internet video will be prevalent in the living room so the video ads will be as well.

But this isn’t about what I think, this is about what others think and so the question was:

2012 Video Ads Forecast: What do you see as being major trends, factors or drivers of video advertising in 2012?

Mike Shehan, founder and CEO of SpotXchange:

As an RTB leader, we feel that RTB will remain a major trend in 2012 as RTB for video will grow faster as a percentage of the overall online advertising spend.  The infrastructure for RTB in video already exists, and both buyers and sellers are realizing the massive efficiencies that can be gained as a result, let alone the benefits of real-time optimization.  RTB is already exploding within the world of online advertising.

Another trend is that private exchanges in video will become more mainstream.  Publishers that set up private exchanges for video inventory benefit from their existing brand power and direct relationships with advertisers, while enjoying all the market efficiencies that a real-time exchange provides.  And they can maintain control over inventory availability and pricing.   SpotXchange is seeing faster adoption of private exchanges in Europe, but we anticipate faster adoption in the US toward the middle of 2012.

David Burch, Communications Director, Tubemogul

Trading desks quietly raised their internal clout this year, but a good portion of overall media buying is still not centralized and is being done by teams of planners and phone calls. Expect this to shake out in the next year.

Walter Harp,  Vice President, Product Marketing, Mixpo

I believe the use of online video advertising by political campaigns in 2012 will be greater than the amount spent cumulatively between 2008 and 2011.  I also think this year will be the year of the tablet.  More and more advertisers will make specific consideration for in-app video ad placements given growing consumption of app-based content on tablets.

Jayant Kadambi, Co-Founder and CEO for YuMe

Over the next year we will continue to see an increase in companies’ use of interactive ads to engage customers and increase brand awareness. With the increased adoption of mobile devices, consumers are avidly viewing more online video than ever before, so brands will have to be more innovative and adventurous in order to capture consumer attention across multiple screens. I predict that in 2012 brands will seek ways to capture consumer intent through interactive ad campaigns that really leverage the platforms of mobile, online, and connected TV.

Skip Brand, CEO at Martini Media

I had stated that I’d take video responses because I thought it would be cool if we could pull together a montage of responses. Alas, only Skip Brand found enough time to get me a video response. I applaud you sir!


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