Advanced Video Advertising Grows Online and On Next Gen Pay-TV Services

The world of advertising is changing dramatically with shifts in consumer behavior and growing online and pay TV video-on-demand (VOD) services, reports In-Stat (  These shifts among others are creating a growing market for advanced video advertising, which In-Stat projects will approach $5 billion by 2013.

Online VoD services, such as Hulu, CBS Interactive and, are already driving growing advanced advertising revenue across their platforms.  During the next five years, Pay-TV approaches to advanced advertising tied to popular TV shows, videos, movies and music content will come into their own.

The online VoD industry has the early lead for delivering Advanced Video Advertising, but the Pay-TV industry is moving quickly and will surpass broadband VOD by 2012t. Because Pay-TV services deliver qualified, repeatable audiences, we expect them to be able to negotiate higher Cost per Thousand (CPM) fees than online services.

Advanced Advertising is the next-generation approach that permits advertisers to dramatically improve their targeting, reporting, and overall return on investment (ROI.)

Recent research by In-Stat found the following:

  • TV Everywhere initiatives will extend ad-supported Pay-TV VOD services to online and mobile users.

  • Among the key companies enabling advanced video advertising are Adobe, Arris, Brightcove,  Cisco, Motorola, Rovi,  Sigma Systems, and thePlatform.

  • The Cable TV industry's Canoe Ventures is working to help Pay-TV operators create large, plan-able audiences that can be cost-effectively sold directly to the large national advertisers.

This Market Alert is drawn from the In-Stat research,  US Advanced Advertising (#IN0904467MBI), which covers the US market for the value of Advanced Advertising services. It includes:

  • Examination of the next-generation approach to advertising.
  • Analysis of how this approach impacts new and old media outlets.
  • Descriptions of how advanced advertising works.
  • Forecasts for US households using ad-supported VOD, broken down by broadband and Pay-TV access, through 2013.
For a free sample of the report and more information, please contact a sales representative:

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This research is part of In-Stat's Multimedia Broadband Infrastructure service. By 2012, 92% of US households will be connected to Broadband, making the Internet the single most-widely available Content distribution system. Telephone companies, wireless carriers, TV networks, Internet Service Providers (ISPs) and Subscription-TV (Pay-TV) operators are making major investments to support Personalized Content services that use broadband. What happens on the Internet is shaping TV, and mobility is now a key growth area. The twin concepts of “the mobile Internet” and “computing in the cloud” are going to disrupt current business models because networks absolutely must inter-operate to be more efficient. Asset Management and Transcoding will be vital to move Content across an ever-growing range of devices that connect to a multitude of networks.

In-Stat's MBI service provides vital insights about how competing service providers are extending their delivery capabilities across over-the-air, wired and wireless “final mile” networks to make Personalized Content the killer application. MBI sets up side-by-side comparisons among competing market segments and provides our opinions about how companies can succeed. MBI covers all geographic regions, keeping subscribers abreast of new developments or trends occurring anywhere in the world that may have an impact on their business.

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Global Interactive Program Guides and Content Discovery

Web-To-TV Video Changes Everything

CDNs and Data Centers to Usurp Video-on-Demand

2Q09 PayTV Subscribers

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