The pay-TV industry will start to see success in advanced TV advertising beginning mid-2010, with US revenues topping $130 million by year-end, according to the new Parks Associates report Addressable, Interactive TV Advertising in the U.S.
Consumer demand for time-shifted TV viewing on VOD and DVR service platforms, combined with the broad deployment of Canoe Ventures’ national addressable TV advertising platform, will drive the growth in advanced TV advertising. By 2014, U.S. addressable, interactive TV advertising revenue will exceed $4 billion, accounting for nearly 12 per cent of total cable, DBS, and telco TV ad revenue.
Advanced TV advertising includes traditional linear 30-second ads and non-linear ads that include VOD and DVR advertising and interactive formats, such as overlay, tags, IPG banners, microsites, RFI, showcases, and telescoping.
“Major US cable television operators, direct broadcast satellite (DBS) TV providers, and telcos have identified advanced advertising as a key revenue opportunity moving forward,” said Heather Way, research analyst, Parks Associates. “In the short term, digital TV operators continue to ramp up their investment in advanced advertising solutions as a pre-emptive move to sustain ad revenues. In the long term, the investment serves to grow the advertising business segment.”