According to Strategy Analytics' "Top Ten Digital Media Predictions for 2017," digital disruption will continue to be the rule rather than the exception.
"As a result of the proliferation of broadband and connected devices, consumers have more choices than ever in how, when, and where they connect with music, games and video," said Michael Goodman, director, Digital Media Strategies, at SA. "As consumer adoption of online alternatives grows, the degree of disruption felt by traditional distribution models is accelerating."
The predictions:
- Brands will re-evaluate the importance of reach.
- Beginning with the upfront, TV advertising in the United States will start to be bought and sold based upon Total Audience Ratings.
- Digital video will account for a larger part of ad spend. Global digital video ad spend will surpass $20 billion in 2017, accounting for 18% of global digital ad spend.
- While OTT video will garner the hype, traditional video will reap the rewards. In 2017, TV revenues (subscription + advertising) will account for 88% of the $192.7 billion TV and OTT video market in the United States.
- Twitter will be sold.
- Programmatic advertising will become mainstream in western Europe as digital display programmatic ad spend accounts for nearly half of digital display ad revenue in 2017.
- Live video, especially live video via social networks, will gain a significant audience.
- Driven by the steady growth of SVOD and OTT video ad revenue, global OTT video revenue will surpass $50 billion ($50.33 billion) in 2017.
- Virtual MPVDs will be hot.
- Microsoft's Xbox Project Scorpio will launch with virtual reality (VR) support.
