Experience is the word that marketers swear by. The other word is ‘Video’ – if you watch or breathe in this space then no surprises here. Brands want a video for everything; agencies don’t have a choice but to create another viral video. Such is the state of digital today that brands are at the mercy of business decisions taken by social networks (to be read as Facebook).
Video led the Indian digital industry in 2017 and it not going anywhere. Data also supports the growth of video – last week DAN’s report on Indian Digital Advertising reported, “Digital video has seen a tremendous growth of around 49 percent. The penetration of digital video among Internet users has increased from a mere 40% in 2016 to 54% this year. Growth of this magnitude will impact advertising spends on video across all platforms.”
The report further informed that spends on video will increase. Industries like Auto, BFSI and FMCG are leading the bandwagon – “Spends on digital video is expected to see the highest CAGR of 38 percent from 2016 – 2020. Its share of spends is expected to increase from current 19 percent to 22 percent by 2020.”
But what would be the video of tomorrow?
Ram Seshadri (Director – Solution Consulting, India, Adobe) made a genuine attempt at decoding it, late last week before a room full of marketers, agencies and content producers. The occasion was the second edition of Vdonxt Asia – a conference discussing the state of video with the eco-system players and the future.
According to Ram, the video of tomorrow will be defined by ‘Experience’. Taking it one step further: personalized experience will define the future of video. Later in the day Ekta Kapoor (Joint MD at Balaji Teleflims), dressed in complete black, in her keynote emphasized that personalized video experience is where the opportunity and the future lies in. “ Video on digital is personal so personalized experience is the future.”
Not just content but tech is going to play a huge role in delivering personalized experience. A simple example would be showing content based on my viewing experience seamlessly across all screens. Talking in the panel about innovation in digital video, a spokesperson from Hotstar added that digital video today is about very lean and personal relationship. “Video personalization is already being done but it is also one of the challenges when it has to be done seamlessly for 100 million users.”
Along with opportunities video has its own unique challenges too. Monetization in one of the biggest challenge but according to Vanita Kohli Khandekar – “Indians pay for content and will pay when they will find value.” The consulting editor at Business Standard shared a data driven presentation highlighting how Indians are paying for content. Though the move will be slow and painful payment mechanism will make the process more dreadful.
According to latest reports Whatsapp (the most popular messaging app in India) is testing payments in India, beta rolling out this quarter. Hopefully, these developments will lead to solve the painful payment mechanism and initiate confidence in consumers.
Speaking at the event OTT player VOOT informed that it is using the block chain method for peer-to-peer distribution of video and monetize it. “We want to incentivize an Amway of content and monetize it.”
Challenges are roads to new opportunities. Fall in data prices and a flurry of new consumers drove consumption of video on mobile devices through the roof (thanks to Reliance Jio). According to last year report: “When it comes to watch time among the premium video providers in November, Hotstar users watched close to 15 billion minutes of content on the platform, followed by Jio TV (8.8 billion minutes), Voot (7.5 billion), Amazon Prime Video (3.5 billion) and Netflix, which was consumed for close to 2 billion minutes, according to App Annie.”
Indians love video and on mobile – November 2017: close to 350 million mobile Internet subscribers used an average of 4 GB of data per month. This surge in data consumption is expected to continue and as per industry estimates, may reach 11GB per month by 2020.
Video is the present but the future would be led by smarter personalized experiences. Indian marketers need to understand that the consumer is smarter and is being served by international players like Netflix and Amazon Prime that are investing huge dollars not only in content but also tech.
Image source: Resize