VOD, mobile TV will garner $22B for US pay-TV advertising

Michelle Clancy ©RapidTVNews | 06-01-2012

Rapid adoption of new viewing formats, including VOD and viewing on media tablets and smartphones, will likley cause up to $22 billion (30%) of the US pay-TV advertising market to shift to new formats by 2016.
And according to the ABI Research report Advanced Advertising Technologies for Pay-TV Platforms, Western Europe will see similar shifts while the rest of world will lag in its transition of advertising dollars to new formats.

“A shift is already underway in the television advertising marketplace from linear ads inserted by a 24-hour schedule to advanced technologies that will increase the effectiveness of advertisers’ spending,” says Sam Rosen, ABI senior analyst, digital home. New technologies are achieving scale within broadcasters’ advertising systems, notably audience measurement and tracking, targeted advertising, interactive advertising, VOD and multiscreen advertising, and other techniques, including companion devices."
Many of the companies leading the charge in the advanced advertising ecosystem are yet to become household names, he added. Rather, they are specialists in new ad formats, including: Canoe Ventures (interactive ads), BlackArrow (VOD ads), This Technology (dynamic ad platform), INVIDI, and Visible World (targeted or addressable ads). And they are due for some revenue-generation given that numerous technology components are required to deliver new ad formats.
ABI added that the vendor ecosystem will rapidly expand to addresses these opportunities, including advertising-specific hardware and software systems, such as ad servers, ad splicers, ad decision systems, and traffic and billing systems. Advertising-specific components will need to be built into set-top box middleware, such as measurement and reporting tools, interactive stacks and interactive applications, and providers will also need advertising-specific VOD software.