Advanced TV ad revenues to top US$ 4bn in 2014

The pay-TV industry will start to see success in advanced TV advertising from mid-2010, according to a new report from Parks Associates, with US revenues topping US$ 130mn by the end of 2010 and going on to reach US$ 4bn by 2014.

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, according to the report. By 2014, interactive TV advertising revenues are expected to account for nearly 12% of total cable, DBS and IPTV ad revenues.

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, EPG 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 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.”