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Viewing report
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US Advanced Advertising
In-Stat/MDR, Dec 2009, Pages: 64
Advertising is undergoing fundamental changes. Traditional TV programming delivers a repeatable audience that advertisers can plan their ad campaigns around. But consumers are consuming more content as Ad-supported Video-on-Demand (VOD). The current growth of Ad-supported online video services has drawn great interest. However, audiences on the Internet may not be repeatable. The Pay-TV industry has developed a comprehensive approach for VOD that accesses subscriber information and can deliver ads to very specific, and repeatable, demographic groups. During the next five years the Pay-TV approaches, tied to popular TV shows, videos, movies and music content, will come into their own, and eventually represent a larger advertising opportunity than the online VOD services. The Pay-TV services will then extend what they’ve learned to online TV Everywhere services. Because the Pay-TV services deliver qualified audiences, we expect them to be able to negotiate higher Cost per Thousand (CPM) fees than the online services.
All Ad-supported Video-on-Demand services will experience revenue growth. By 2013, we expect that the advertising value for online video services will be US$1.9 Billion, and value of the Pay-TV services will be nearly US$2.9 Billion.
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