According to Nielsen’s Broadcast Season Universe Estimates, the number of television households in the US has grown from 111.4 million in 2007 to an estimated of $114.9 million by the end of 2010. The fact is that more people watching television than ever before.

Of course the growth of online video views has been explosive. According to July data from comScore, 178 million U.S. Internet users viewed online video content during the month and averaged 14.7 hours per viewer.

Content is still king when it comes to this convergence. The biggest difference is that much of what is being viewed is user generated content. YouTube has millions of channels, some with high production quality and with very low production quality. The millions of views generated by low budget content may surprise some. The one channel that comes to mind is Fred (aka Fred Figglehorn). This kid has been on YouTube for years. He gets millions of views for every video that he puts out and monetizes these views through the YouTube partnership program. I believe he’s now making a movie for Nickelodeon. We have already seen TV show start to increase distribution of content through sites like Hulu. You will start to a significant increase in web based user generated content being formatted and produced for TV.  Fred’s TV movie and shows TV shows like Web soup are just the beginning.

From a business perspective it just makes sense. If your self produced show/videos generate million of views online while drawing a certain demographic, then the TV folks already have an audience.

One of the advantages that web video has over TV is all of the real time metrics/interaction that can be tracked with advertisements.  There are several companies that are developing the same type of tracking capabilities for TV.

I’ m writing this blog entry while looking at my 32inch Apple monitor. I still prefer my 42 inch plasma for TV.  The biggest part of this E-volution will be when I’m writing my blog entry on the same screen that I watch the NFL.  In other words when TV/web surfers start using the same monitor for both that will be the biggest difference.

If you have any doubts about this convergence just think back the 1990′s. Remember dial up? Remember trying to watch a video using dial up? The very fastest modem at that time was 56kb. You often would have to wait at 20 to 30 minutes for a video to download. Things have changed at a rapid pace and unless of course the Mayan Calendar is correct, I have no doubt this convergence will happen in a big way.

So, your co-worker coaxes you to watch the trailer for Twilight when you came in for work this morning and it convinced you to be Team Edward all the way. Well, you’ll probably see the preview again in the theater a couple of times and wonder all along why you weren’t Team Jacob in the first place?  Regardless, you’ve seen the trailer twice as many times as you would’ve seen it ten years ago and you’ve invited all your friends to the midnight showing – now that’s how advertising works!

It’s almost impossible to go about your day online and not see an advertisement for an upcoming feature film.  The ad may be a banner across your e-mail server, or a pop up ad on your favorite news page.  It may even be free ticket dancing across your screen or a contest that entices you to check out the trailer.  What ever it is – online advertising for movies has become more and more aggressive since the first preview showed up on our laptops.

Take the movie Paranormal Activity.  This film was made for a dime in 2007 and sat on the shelves at Paramount for two years.  Needing to close out its fiscal year with a bang,  Paramount dusted off a copy and brought in the ad wizards.  With few dollars for marketing, a specific approach was taken: the movie would NOT carry a wide release unless 1 million votes were received on their official website, trailer included of course. And even though the indie hit was slowly making money already, the online approach to getting this film out and about was simply genius.  Once people heard about the scary flick on sites like Twitter who aggressively helped pushed the outcome by telling folks to “tweet the scream.”  People everywhere logged on to the site, watched the preview and made their choice.  When someone tells me I can’t watch a film – you better believe I will see it. And for online ad companies, this was a unique way to track what sites people were surfing, what advertisements linked them to the film’s website, how many people participated and how financially effective the campaign was. To date, Paranormal Activity has grossed $183 million worldwide so, you tell me.

Wikipedia claims that ten billion online videos including movie trailers are watched annually; while previews at movie theaters trail this number by thousands. Over 15 million people viewed the trailer for Paranormal Activity on YouTube, and that’s how online advertising has proved to be changing the film industry one click at a time.

The funny looking box you see above is a not new technology; however the QR Code is pretty foreign to us in the U.S. QR stands for Quick Response. In the next decade, I believe QR codes will start popping up in U.S. media providing our culture with what we love best; content delivery that is easy and FAST.

The QR Code is a kind of 2D barcode that contains a plethora of personalized digital data. It is primarily used to send links to your mobile device. A simple snapshot with your camera phone and the QR Code sends the necessary information to open your web browser to a specific URL site or text message. 2D barcodes allow advertisers and publishers to push relevant digital content directly to consumers? mobile phones when they are most interested in a product or service. This technology bypasses the search engine stage, allowing advertisers and publishers to give people more information at the moment of awareness.

What are QR codes and what are they already doing?
Currently, QR codes are being used as a tool to get more information. You see a code in a magazine, snap a pic, and it directs you to the product site on your mobile phone. Japan and some European countries have taken this technology to a new level. They do use it for informational purposes; however it has opened the door to deeper consumer engagement and interactivity. QR codes are proving that they have the potential to do even more for advertisers and consumers alike.

Some innovative ideas:

• URLs/Coupons – Dick’s Sporting Goods announced its new mobile site with QR coding at the new Cowboys Stadium during the University of Oklahoma vs. Brigham Young University bowl game. This was the first marketing campaign to place a QR code on a jumbo-tron during a sporting event. University of Oklahoma vs. Brigham Young University fans were encouraged to take a picture of the QR code and were directed to a coupon for the store. If your phone didn’t have QR technology, no problem. The website URL and an email address were clearly displayed as other ways to acquire the coveted coupon. A deeper explanation of the campaign and the results can be found online.
• E-tickets – Imagine not having to wait in line for your Austin City Limits Music Festival wristband a week before the show starts or the three hour line on the day of. QR codes can completely eliminate the need for wristbands and tickets. After purchasing your ticket online you receive a QR codes to your mobile phone. A simple scan of your phone will show that you have purchased a three-day or one-day only pass. Once you have checked in, your ticket is marked as used. Also, imagine after you have checked in, your phone directs you to the ACL site, where you are able to view weather, time changes, band line-up, vendor maps, and more. QR codes could even eventually tell you exactly what song your favorite band is playing on what stage in real time. Most importantly, no lost ACL tickets and no need to be worried they won’t scan.
• Business cards & Resumes – An awesome way to set you apart from the crowd. Why not include your LinkedIn QR code on your resume? Or your company’s website on your business cards?
• Tattoos – I would grab some temporary ones for the office party. Or, if you want to go permanent that’s cool too. Just make sure it’s something to last a lifetime!
• Billboards – Disney in Tokyo has Mickey Mouse QR codes that send you to the Disneyland website. Billboards in subway stations allow for easy point and shoot.
• Branded QR codes- include a picture within the code and in color – These QR codes from BeQRious can have color or pictures imbeded in the code! Why not include your face on that resume? Or, put your company logo inside the QR code on that business card?
• Swag and self-branding – Additional information is gained by using QR codes. Therefore, the potential use for them is limitless. The code can contain anything from your information, to your likes and dislikes, to what you like in a guy, to what your plans are for that night. Why not create a coffee mug, a hat, a scarf, even a baby bib. You can create your own patches. Instead of bumping on your iPhone, why not scan someone’s QR code to learn more about them? Hosting a charity event? Raise funds on location with QR coding.
• Geography based tours and reviews – City Search and Antenna Audio launched a test run of geography based QR coding in the spring of 2008. QR codes were distributed around San Francisco in restaurants and at popular destinations. The codes included restaurant reviews, as well as audio tours and historical facts allowing tourists access to distinct decision making information.
• Loyalty points system – In Japan, Coca Cola uses QR codes to reward loyal customers. Vending machines have QR codes imprinted on them, and consumers are invited to earn as many as they can, ultimately redeeming them to get prizes.
• Secrets and acts of defiance – The Pet Shop Boys released a single in 2007 on which they denounced the idea of a British national identity card. On the CD cover, there was a QR code that directed to their attack on the system. Also, the entire music video sports different QR codes that link to civil liberties websites. Pretty cool that QR coding is being used to spawn political debate and protesting!
• Alternative paintballing – No more immediate bruising from the paintballs flying at you at speeds approximately 60mph (at least that’s what it feels like). Players wear t-shirts with their own individualized QR code. A player snaps your QR code from afar and a text message is sent to you informing you of your demise, allowing for a high quality game sans the pain!
• Intelligent advertising – changing the site location to match the weather. Dynamic QR codes are special codes can be updated in real time for businesses that sell products that might potentially have a need to change advertising in response to say, the weather. What if Gap had a billboard in the NYC subway station and the QR code directed the consumer to the GAP mobile homepage featuring a new line of flip-flops? Well, on Tuesday New York has a forecast of heavy rain. No, problem. Just switch out that QR code to direct consumers to the part of the website that highlights Gap’s new swanky umbrellas!
• A great idea by DDB Brazil for Editoras Online – DDB Brazil in a campaign for Online, a Brazilian online bookstore, incorporated almost every valuable player in the media arena. QR codes are the single piece that molded the dynamic parts of the campaign together. This YouTube video explains the intricacies of the campaign far better than I could here. By far my favorite in terms of innovation and success! 33 Interactions has a great post by Jenine Wong that gives an extensive description of the campaign as well.
• Tim Burton’s film “9″ used QR codes that allowed fans to view sneak peaks and hear commentary from the director.
• Green Day‘s album, 21st Century Breakdown featured QR codes in posters, promo items, and ads directing you to a site with exclusive downloads and images of the band.
• L.A. Candy, the newest book by Lauren Conrad sports a QR code on the back cover.

So, will QR codes be the “URL Killer“, as Garrick Schmitt and others have described it? In his article Schmitt says, “QR codes will become the primary bridge connecting real and virtual worlds.” As you can see from the aforementioned examples, these codes are one step in the direction of the inevitable merging and graying of media. One builds on the other builds on the next. The mobile revolution and the saturation of the online space have created a need for simpler URLs and innovative connections. And of course, as I mentioned in one of my previous blog entries, Mobile Marketing Prowess, the mobile consumer wants conversation. QR codes have opened the door to a broader and deeper range of personal targeting and communication, and they have the potential to become a value exchange of relevant, individualized, useful, and interesting information.

Don’t be fooled. Yes, the snake oil hucksters that schlep keyword stuffing and link spamming are doomed, but their future was never very bright to begin with. If this is your strategy you’ll get nowhere, and if you’re paying for this then you’re wasting your money. If you’re charging someone for this, shame on you.

The core aspects of SEO, however, are needed more than ever. Google alone averages more than 200 million searches per day. With that much daily traffic, their view of your website matters. Do you really want to completely ignore the potential to earn traffic from them? Or worse, leave it entirely to chance? If you get one ten-thousandth of one percent of that (that’s 0.0001%), 200 people per day will see your site. Do that many people cross your doorstep each day? Does your phone ring that many times each day? Clearly there is an upside to paying attention to Google.

The traffic that your website receives can provide keen insight into what your target market thinks about your company. Whatever the goals of your company, your website can help you get there. Increasing sales, improving customer retention, reaching a new customer base, improving the return that you get on your AdWords spend… these are all achievable. As long as you are measuring your website’s traffic and can recognize trends, you can reach your goals.

Don’t misread the data. Yes search is changing, it has been since it started. It would be a mistake to infer that this makes SEO irrelevant. Quite the contrary, the changes that Google is making strengthen their search results, which gives people greater confidence in the answers they find through Google, which means that more people will be searching.

Optimizing your website for search is more important now than ever. Frankly, it’s irresponsible to think otherwise.

Check it out, WAV Group Releases Localism Whitepaper.