On-demand and mobile device video to offer up to $22 billion in US Pay-TV advertising

Customers’ adoption of new viewing formats, including VOD
and viewing on media tablets and smartphones, will cause up to $22 billion (30
percent) of the US pay-TV advertising market to shift to new formats by 2016.

Western Europe will see similar shifts, while the rest of
world will lag in its transition of advertising dollars to new formats.

A shift is already underway in the television
advertising marketplace from linear ads inserted by a 24-hour schedule to
advanced technologies that will increase the effectiveness of advertisers’
spending,” said
Sam Rosen, senior analyst, digital home, ABI Research.

New technologies are achieving scale within broadcasters’
advertising systems, notably audience measurement and tracking, targeted
advertising, interactive advertising, VOD and multiscreen advertising, and
other techniques, including companion devices.

Many of the companies leading the charge in the advanced
advertising ecosystem are yet to become household names, rather they are
specialists as new ad formats develop, including: Canoe Ventures (interactive
ads), BlackArrow (VOD ads), This Technology (dynamic ad platform), INVIDI, and
Visible World (targeted or addressable ads).

Numerous technology components are required to deliver
new ad formats.

The vendor ecosystem will rapidly expand to addresses
these opportunities, including: advertising-specific hardware and software
systems, such as ad servers, ad splicers, ad decision systems, and traffic and
billing systems; advertising-specific components of set-top box middleware,
such as measurement and reporting tools, interactive stacks, and interactive
applications; and advertising-specific VOD software.


Recently, ABI Research said
that the global pay-TV market will grow to generate service revenues of $236
billion by the end of next year. Cable TV operators continue to face increasing
competition from IPTV and over-the-top (OTT) services. Increasing broadband
penetration and the growing number of people using Internet-connected devices
are supporting subscriber growth in IPTV and OTT services.

By Telecomlead.com Team
[email protected]


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