HD TV advertising outstrips standard definition

Michelle Clancy | 13-08-2012

High-definition (HD) television advertising is now more common in the United States than standard-definition marketing for national broadcast networks, with HD ad distribution seeing a 150% increase in two years.
According to new research on advertising trends from Extreme Reach, HD ads made up about 10% of all TV ads distributed by advertisers to broadcast and cable media outlets in 2010. Today, 25% of ads delivered to TV media outlets are in high definition.
Financial services firms are far and away the biggest fans of HD, with 76% of ads in the vertical being aired in HD. Political advertisers like HD too, with 51% of them delivering HD ads.
There are three industry factors that may be driving the quickening shift: lower HD distribution costs; the fact that more local media outlets now accept HD ads; and simpler execution of ad campaigns that include HD ads. A lot of that has to do with digitisation.
"HD TV advertising has seen tremendous growth since 2010, and I think the rise of cloud computing has really helped move the industry forward into high definition," said Dan Brackett, CTO of Extreme Reach. "By taking advantage of advanced cloud-based solutions, advertisers have been able to leverage higher performance/lower cost workflows, and those efficiencies have helped fuel the rapid growth in HD advertising." This shift has enabled TV advertisers who use the cloud for ad distribution to deliver an average of 98.5% of their SD and HD ads digitally, Brackett noted.
Another notable trend is the embrace of regional and local advertisers to the mix. HD advertisers have typically been large national brands. The removal of key HD advertising hurdles is broadening that profile to include more local and regional advertisers too, Extreme Reach noted.
For example, in the last nine months, many of the nation's largest grocery store chains
have begun advertising in HD on local TV stations. Regional automotive dealer groups
have also ramped up local HD advertising. Previously, neither had the time, budget or
ability to run local HD spots.