Streaming video is a market that, though still in its infancy, appears poised to grow up fast. According to the January 2012 Accenture report "Always On, Always Connected" that analyzes online services used by worldwide Internet users, 36 percent of consumers aged 18 to 34 stream movies and shows, along with just 20 percent of those aged 35 and up. And yet, digital streaming services seem to be raking in the dough. In the past year, Hulu grew by 60 percent to reach $420 million in revenue. And even though it lost hundreds of thousands of customers due to an increase in prices, Netflix still boasts 20 million weekly streaming customers who watch an average of over 33 hours of content per month.
The recent news that Verizon and video rental service Redbox will partner this year to create a new digital streaming service is, therefore, worth paying attention to. Verizon and Coinstar, Inc., parent company of Redbox, are reporting that their new service will include DVD and Blu-ray rentals along with on-demand streaming media services. Just as Netflix and Hulu users are able to stream movies and TV shows to TVs, computers, and mobile devices, so too will consumers who subscribe to the new Verizon-Redbox service.
This has some significant implications for advertisers. It's still unclear to what degree the new service will be ad-supported. Netflix has shied away from advertising to date, but streaming media giant Hulu offers :15 and :30 video spots, companion banners, overlays, and plenty more. If Verizon and Redbox want to introduce advertising into the streaming portion of their service, they'll merely need to take a look at Hulu's victories and mistakes.
Funnily enough, it turns out that its successes are, in fact, attainable to any advertiser. The best practices that have evolved from streaming media advertising are essential to virtually all marketers reliant on video content to promote their services and products.
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With Streaming Video, Ad Strategies Come Streaming In
- Written by ClickZ - Tessa Wegert