If you read our 2012 State of Online Video Report, then you are familiar with our 2013 prediction that CMOs will enhance customer experience and engagement strategies with smarter applications of personalized video. But let me give you a deeper dive into additional predictions for online video technologies that are sure to prosper in the coming 12 months…
#1: Tablet is Top Dog
2012 was the year of tablets (both full size and mini), and they are here to stay for 2013. Tablet market share will increase, and so too will video view rates on these devices. In fact, e-reader sales shrunk in 2012 by 28% proving the device that’s taking over allows consumers to not just read, but to watch, listen, share and socialize all media forms. Call it mobile video or video-on-the-go, more people are consuming video on their tablets and the share of online video being consumed on a mobile device is on the rise, too.
#2: Connected TVs Are Not Far Behind
Online video anywhere and everywhere will start to occur in the original domain of video – the TV. As interactive and connected TVs increase in the home, online video will start to be consumed via these devices, too. This trend will grow in 2013 as the industry expects the launch of Microsoft’s new Xbox 720, and other advancements in connected TVs that we can expect to see at CES this week.
#3: Big Data to Power Video Strategies
Online video brings out the best of its parts: the data and personalization characteristics of ‘online’ and the creativity and engaging experience traits of ‘video.’ This convergence will accelerate in 2013, making smarter video decisions that are based on data rather than intuition. Deep analysis of trends, segments and performance will drive strategies for customer engagement and loyalty programs, resulting in an even more powerful form of online video than we saw in 2012. Alignment around measurement of online video is key to its success and will hopefully be achieved in 2013, as it was a constant struggle for marketers last year.
#4: Contextualization Will Be Crowned King
“Reach the right person with the right message at the right time on the right device.” I’m willing to bet you’ve heard this mantra repeatedly, if not live by it. Well this is the year to step it up, and deliver with truly relevant experiences to meet your customer’s needs. The recent Forrester “Contextualization” report shared great insight and takeaways on the topic, and fuels my favorite video technology prediction for this year – customers’ digital experiences, especially video, will be seamlessly optimized with contextualization. I’ve seen leading brands are already using some of the following contextual attributes to deliver optimum customer experiences:
- Profile data on who the customer is (e.g. demographic, purchase frequency, one-click buyer, number of products, dollars / miles / stays until next threshold)
- Historical data about what the customer has done (e.g. products previously viewed, abandoned carts, related items to purchase history, recommendations and loyalty rewards summary)
- Situational data about what’s happening in the customer’s life now (e.g. event recognition such as birthday or life milestone, device / browser, time of day, nearest physical location or store)
#5: YouTube’s Original Content to Take Primetime Stage
YouTube’s decision to invest a heavy $100 million on original content over a year ago is starting to pay off. In addition to international channels added this past October, the top 25 original channels are averaging more than 1 million views per week and about 800 million people watching 4 billion hours of content monthly. And with more connected TVs added to homes in 2013, no doubt we expect to see more YouTube original content consumed over primetime TV. Justin Bieber and PSY were only the first generation of stars born on YouTube, in fact, we predict more stardust ahead from the video channel giant and anticipate seeing top-notch web content move to TV.
#6: HTML5 on the Horizon
Is the long awaited HTML5 finally here? Not yet, but it’s coming. The language was “feature complete” at the end of 2012, and will become an official Web standard in 2014. In 2013, HTML5 environments with H264 video will achieve critical mass while Flash video disappears into the horizon. Adobe has already given up on mobile, and as mobile devices take bigger shares of video views, HTML5 will become the default choice for many.