Tuesday, December 20, 2011, 9:25 AM ET|Posted by Will RichmondFollowing are 3 video predictions for 2012 from Raj Amin, CEO of HealthiNation, a leading producer and syndicator of health and lifestyle video.
1. Online Video CPMs overall will continue to rise and truly be considered part of the TV buy, and demand outpaces supply for quality viewership.
Better understanding of online view metrics and brand awareness/intent lift will continue to drive CPMs up for premium content against premium online video experiences where impact is the highest. Measurement will support this and bigger portions of TV budget will shift as reach and scale are now at levels that move the needle for consumer brands. Agencies that align this way will see greatest value for their clients as viewers continue to consume video across all screens.
2. Consolidation continues as bundled services rise in importance.
Ad networks and online content companies will begin to be acquired into larger traditional media companies. See Babble by Disney as an example acquiring digital savvy content and experience. WPP's purchase of 24/7 was an example of this on the agency side, but nothing big has yet happened in video which is now starting to take a significant amount of the value from internet advertising as display continues to erode as a branding medium. Big media needs to have a significant digital component in the bundle, and so do large destination driven publishers like AOL that need more scale to play against networks (e.g. purchase of 5min's video syndication network). More deals will happen as online video companies continue to post strong growth numbers.
3. Facebook will become much more dominant in video, and other social networks will emerge to support new needs.
Companies like LinkedIn come in from the top and others like Path come in from the bottom to begin to squeeze some of Facebook's value to different user classes (e.g. personal vs. business). For video, Facebook will be as dominant or more so than YouTube as they construct models that are more content owner friendly and move to become a true media company.