The Rise Of Interactive Ads & Nine Other Predictions For Online Video For 2018
Ooyala, a leading provider of software and services that simplify the complexity of producing, streaming and monetising video, has revealed its top nine predictions for the competitive digital media and entertainment landscape in 2018.
Expect to see more OTT services launching, merging and even folding but ultimately everyone is going to try to get the consumer onboard.
What will 2018 have in store?
- VR & AR: Is 2018 the year for both technologies?: Augmented Reality (AR) – driven by a significant buy-in from Apple (ARKit), Facebook (Camera Effects platform) and Google (ARCore) – will blossom during the year. The hallmark Virtual Reality (VR) 2018 event will be the Winter Olympics in PyeongChang in February. This global event hopes to enlarge the VR-verse (universe) as companies slowly move away from clunky, 3-D style headgear. In 2018 expect more lightweight, Google Glass-type wearables; and suits that can make you feel temperatures, and even pain!
- OTT continues to grow and the target on Netflix’s back gets bigger: While Netflix continues to generate huge consumption figures and subscriber growth, “other” OTT services quietly grow with it. Niche SVOD services that feature the content Netflix doesn’t have, including local broadcast stations, sports and events (potentially in the form of pay-per-view specials) will grow.
In Australia, the number of Australians with an SVOD subscription is expected to overtake pay TV subscription by mid-2018, with Netflix leading the charge with over 50 per cent share.
- Cord cutting continues: In 2016, global pay TV continued to decline when it lost about two million subscribers; and in 2017, losses in Q2 and Q3 alone neared two million. Losses will be higher in 2018, perhaps as high as five million.
- We’ll see an even more mobile world in 2018: Ooyala saw mobile video plays top 58 per cent of all video consumption in Q3, the sixth quarter of growth in that segment. That share will top 60 per cent in the first half of 2018 as more wireless operators push more OTT content – both SVOD and AVOD – to customers and as mobile data charges decline across the world. There has been similar growth of long-form video on mobile devices: smartphones are catching up to tablets as the viewing device of choice. APAC leads the world in mobile viewing, with 64.4 per cent of video plays over mobile.
- Amazon – Playing new games with sports: Amazon spent a purported US$50 million to stream 11 NFL Thursday Night Football games this year, a drop in the bucket compared to what it may spend in 2018 as it strives to become a next-gen sports streamcaster. Coming up for auction in 2018 are, among others, rights to English Premier League soccer, which carried a price tag of US$1.3 billion for rights to the past three years. Amazon also this year cut a deal for rights to stream 37 live ATP World Tour tennis events to the U.K. and Ireland. The retailer also will have to decide if it wants to keep Thursday Night Football rights – which likely will carry a higher price tag this year. In Australia, Twitter’s live stream of the Melbourne Cup, coverage of the Women’s Big League (WBBL) on Facebook and the addition of Australia’s first dedicated eSports network, eGG, to Fetch’s channels are new avenues for sports leagues to reach new and bigger audiences.
- The cost of content will reach new heights in 2018: Netflix is planning to spend US$8 billion on content in 2018; Amazon will spend nearly US$5 billion, and HBO, US$2 billion. Apple is willing to spend US$1 billion or more, as is Facebook – and, if live sports rights are included, those numbers could grow even more. Content costs will continue to rise, driven by the competition among distributors. Local operators like Foxtel and Stan are also investing in local dramas. The Kettering Incident by Foxtel, for example, costs $1.75 million per episode.
- Traditional advertising’s slow death spiral: The advertising industry is finally learning that the future is interactive ads and more sponsored programming: in short, a true sea change in how advertising is consumed. Look for lighter ad loads on AVOD sites, better targeting and snappier campaigns utilising data and new technology. It’s the same case in Australia, where print, Free-to-air (FTA) TV and traditional advertising are all declining year on year, and mobile and digital are growing.
- Data, Artificial Intelligence (AI) & machine learning will permeate: This year, more devices will use voice inputs to help you find your content. Apple’s Siri, Google Home and Amazon’s Alexa all are leveraging AI and machine learning to help you find what viewers want to watch without having to type in titles, names or genres. AI will help with more than just discovery and recommendation: Companies will begin to harvest the fruit of targeted advertising on mobile devices used at home and beyond.
- More M&E M&A: It’s unlikely that the government will ultimately block AT&T’s proposed US$85 billion acquisition of Time Warner: the key will be the assurances by AT&T that its actions will be fair. That won’t be the only mega-deal: Disney will make its deal for several Fox assets, likely with a 2019 closing. Those deals will likely spawn additional deals to feed consumers’ insatiable content appetites.
Ultimately, those companies which excite consumers with innovations in discovery and content delivery, funded through new monetisation methodologies, may well enjoy the most success in 2018.
Please login with linkedin to comment
OoyalaLatest News
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.
Bumble Reveals New Brand Identity To Usher In New Era Of Dating
It's ironic that all the dating apps market themselves as having no weirdos, freaks or mummy's boys like their rivals.