IT’S TAKEN THE TV INDUSTRY decades to grasp the complexities of advertising, as a result online and mobile industries are still playing catch-up claims one industry market research firm.
In-Stat claims that online and mobile industries still lack an understanding of how traditional TV works. The research firm says that those who buy advertising space will require more “time, effort and education” to better understand how to transfer their existing knowledge about the media delivery industry from TV to the Internet and wireless services. In the meantime TV program services will continue to control how advertising dollars are spent says the research firm.
“Advertising buyers understand the current complex nature of the U.S. media delivery industry, and it will take them time, effort, and education to learn how to adapt what they already do to the new hardware-based opportunities that seem so promising,” says Gerry Kaufhold, In-Stat analyst. “Customer-specific advertising that targets identifiable ethnic, cultural, language, or special interest audiences will see above-average growth rates through 2012.Geographic and Hardware-based advertising from Cable TV operators will surge forward beginning in 2010.”
TV advertising will continue to impacted by the Internet and by mobile services that provide highly personalized content delivery says In-Stat. No longer does "one ad fit all" viewers and the one big trend is for all advertising to become more relevant to the people who see it. The firm adds that new technologies promise to achieve that via set-top box, PC and mobile device addressability.
In its research In-Stat also found the following :
• Traditional TV advertising that is attached to popular content is still the best way to obtain repeatable audiences during the flight of an ad campaign.
• Specialized program services focused on ethnicity, language, sports and communities will continue to increase the number of customer-based TV advertising outlets.
• Geographic-Based Addressable Advertising will see the fastest growth.
• Hardware-Based Addressable Advertising will dramatically expand during 2010.
• Hardware-Based Addressable Advertising solutions already exist on the Internet, and solutions based on Set Top Box addressability will be growing on a market-by-market basis as Cable TV and TelcoTV services implement emerging advertising insertion technologies in their headends.
• Key problems still to be solved include transcoding, metadata definitions, media management, and creating integrated selling and purchasing solutions that work across all the possible delivery platforms.
• Companies to watch include MediaBank, DG FastChannel, and Run Digital Media.
The research, "US Addressable TV Advertising" covers the U.S. market for addressable TV advertising via traditional and new technologies. It includes analysis of the means broadcasters can employ to provide addressable TV advertising. It also analyzes the strategies broadcasters and advertisers can use to reach highly targeted groups of consumers. Forecasts of U.S. addressable advertising by category through 2012 are included.
