SHIFTS IN consumer behavior combined with the growing demand for on-line and pay TV video-on-demand services are fueling the market for advanced video advertising, says a new report from In-Stat.
Online video-on-demand services in the U.S. like Hulu, CBS Interactive and ABC.com are already driving growing advanced advertising revenue across their platforms. During the next five years, In-Stat predicts that pay-TV approaches to advanced advertising tied to popular TV shows, videos, movies and music content will come into their own.
“The online VOD industry has the early lead for delivering advanced video advertising, but the pay-TV industry is moving quickly and will surpass broadband VOD by 2012,” said In-Stat analyst Gerry Kaufhold, in a press release. “Because pay-TV services deliver qualified, repeatable audiences, we expect them to be able to negotiate higher cost per thousand (CPM) fees than online services.”
In its report U.S. Advanced Advertising, the market research firm identifies advanced advertising as the next-generation approach that will permit advertisers to dramatically improve their targeting, reporting, and overall return on investment. It predicts the advanced video advertising market will approach US $5 billion by 2013.
Recent research by In-Stat found the following:
– ‘TV Everywhere’ initiatives will extend ad-supported pay-TV VOD services to on-line and mobile users;
– Among the key companies enabling advanced video advertising are Adobe, Arris, Brightcove, Cisco, Motorola, Rovi, Sigma Systems, and thePlatform;
– The U.S. cable TV industry’s Canoe Ventures is working to help pay-TV operators create large, “planable” audiences that can be cost-effectively sold directly to the large national advertisers.
