Pay-TV providers will start to cash in on advanced addressable advertising campaigns by the middle of next year, according to a report by Parks Associates.
Revenues across the nation for addressable, or targeted, ads will top $130 million by the end of next year. By 2014, U.S. addressable, interactive TV advertising revenue will exceed $4 billion, accounting for nearly 12 percent of total cable, DBS and telco TV ad revenue, according to Parks Associates.
Consumer demand for time-shifted VOD and DVR service platforms, along with a broad deployment by Canoe Ventures’ addressable ad platform, are some of the main drivers for the growth in advanced advertising, according to the report.
Parks Associates said advanced TV advertising includes traditional linear 30-second ads and non-linear ads that include VOD and DVR advertising and interactive formats, such as overlays, tags, IPG banners, microsites, RFI, showcases and telescoping.
"Major U.S. cable television operators, direct broadcast satellite TV providers and telcos have identified advanced advertising as a key revenue opportunity moving forward," said Heather Way, research analyst at Parks Associates. "In the short term, digital TV operators continue to ramp up their investment in advanced advertising solutions as a preemptive move to sustain ad revenues. In the long term, the investment serves to grow the advertising business segment."
Yesterday, BlackArrow and Comcast announced the launch of a small VOD advertising trial in the cable operator’s Jacksonville, Fla., system.
In June, Canoe Ventures, which is backed by Comcast, Time Warner Cable, Cox, Cablevision, Charter and Bright House Networks, announced it was pulling the plug on its first addressable advertising product. Canoe Ventures is instead targeting an interactive campaign based on Enhanced Binary Interchange Format (EBIF) that is slated for the fourth quarter of this year.