HD TV advertising doubles in 2011

Michelle Clancy ©RapidTVNews | 12-12-2011

HD advertising saw big growth in 2011: reduced distribution costs, better penetration of local HD broadcasters across the US and better campaign execution are all to be credited says Extreme Reach.
Since the beginning of the year, the percentage of commercials delivered in HD has increased by roughly 50%—a significant shift from the second half of 2010, when HD growth among advertisers remained relatively flat. The research firm found that one year ago, HD ads made up about 10% of all ads distributed by advertisers to broadcast and cable media outlets. Today, that number has doubled.

Last quarter’s HD Trends Report from the firm outlined the key issues advertisers identified as hurdles to HD adoption. Cost, coverage and complexity were the three most significant. Most of those advertisers had already adopted HD to some degree, but cited these hurdles standing in the way of HD expansion. Of them, cost has been the biggest concern.
"The vast majority of the study’s participants cited distribution cost as the most insurmountable hurdle," Extreme researchers wrote. "They simply couldn’t justify the additional cost to deliver HD advertising to a larger number of media outlets."
The introduction of lower-cost, cloud-based digital distribution capabilities has broken a long-standing price barrier. This more evolved approach has driven distribution costs down by an average of 30% for a large segment of the market, since a cloud-based model has a significantly lower cost structure than the older satellite distribution model.