New multimedia spend to achieve US$12.6 billion by 2012
By Erina Lin, Tuesday 19 February 2008 at 22:35 :: World Digital Media Trends :: #1282 :: rss
According to Parks Associates, the spending on "new multimedia" platforms will increase to US$12.6 billion over the next five years, which includes broadband multimedia advertising, estimated to be more than $6 billion, and embedded video advertising, which will account for over one-third of the total.
Mobile news and entertainment will achieve $5 billion in 2012, dominated by display and search, while on-linear TV services, such as video-on-demand and digital video recorders, will generate revenue of less than $1 billion, most of which are interactive ad spots.
Harry Wang, senior analyst and author of the report "New Advertising Platforms and Technologies," pointed out the key selling points of new multimedia are “the ability to target the audience and the accountability provided by digital measurement.”
Indeed, all the penetration figures and consumer polls are backing up this idea. For instance, DVR penetration was up 18 percent to 40 percent between the 4Q of 2006 and the 3Q of 2007. Last year, over half of U.S. households watched short videos online, and 64 percent of consumers say they would watch ads in exchange for free mobile Internet service.
From a corporate perspective, consolidations and acquisitions by big Internet players indicates a larger advertising scale, a greater variety of digital platforms, and more cross-platform integration opportunities, according to Media Post.
The report came out during the strike by the Writers Guild of America, which was finally resolved last week. Wang, noting that the dispute mainly focused on dividing the spoils from these new ad revenue streams, warned that "there must be interest alignment among major stakeholders to avoid frictions like the Writers Guild strike that hinder content flow to these new platforms" in the future, Media Post reported.
In addition, this report seems to imply that the multimedia growth will be hardly affected by any economic slowdown, while other observers say digital media could even profit from a slowdown, due to the fact that their targetability and measurability make them even more attractive to the budgeted advertisers.







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