ACCORDING to latest studies on the ever-evolving internet industry, profits from theonline video market are seen to grow four-fold by 2020.
Advertisers and marketers in the United Kingdom’s television and broadcast business were surveyed by MTM on how they view the online market in the next 8 years.
More than 77 percent, or three-quarters, expect solid growth in revenues and are optimistic about their overall financial performance.
Presented at the Guardian Changing Media Summit, the results also showed that businesses predict revenues from online ads to grow more than 300 percent by 2020.
On top of this, a study conducted by the Red Bee Media revealed that nearly 60 percent of respondents forecast brand placement advertising-funded programs to emerge as a very important source of profits.
Chief executive officer Bill Patricio said that if the last decade has witnessed the convergence of broadcast networks with broadband, it is possible that the remnants of the coming years will experience a rivalry between changing patterns of consumption and business models steered by consumer demand.
The study also found that more than 70 percent of the respondents are certain that the competition for quality online video content will rise intensely in the coming years.
Patricio emphasized that online media firms will need to put up a good fight and find more innovative ways in the rapidly changing online landscape if they are to take advantage of the market and succeed.
Online empires like YouTube and Google may be among the firms that have the most chance of benefiting in the online video war.
Based on a separate review conducted by eMarketer, online video advertising will have a bigger share of web marketing spending.
The firm predicts the medium to double its revenue share in ad spending to 16 percent in 2016. Online video remains to be the fastest growing advertising format on the internet, with budget allocation increasing by over 50 percent this year.
Meanwhile, a scarcity of quality ads inventory will be the main challenge for online video, but the issue can be easily resolved, if not turned into a benefit.
This was the viewpoint of Video Hub general manager Anthony Risicato, who was special guest during the Bee.TV Executive Forum in Vieques this week.
Risicato said that while online video inventory for premium and quality online ads is limited, television is hounded with the same problem and has turned the issue into an advantage.