How IPTV Is Changing Advertising: Industry Report

How IPTV Is Changing Advertising

Product Type: Market Research Report
Published by: Yankee Group
Published: September 2007
Product Code: R388-2505

Description

Local Ads Go Interactive Thanks to IPTV Tired of watching the same old commercials from your local car salesman or furniture store dealer? Those days are on their way out with the new advertising promise that IPTV has brought to the forefront. Instead of sitting and being force-fed the 15- to 30- second questionably produced ad, it will be an interactive experience. See what cars are available on the lot, the dealer locations, or—if the audience is lucky—a banner ad that just requires consumers to click if they want to see more about Big Larry’s Auto Lot.

Advertising is no longer about static one-way communication with the audience. The internet has revolutionized targeted advertisements, with the likes of Google and Yahoo! at the forefront of the viewing experience. Although traditional television advertising revenue has slowed down significantly in the past few years, recent investments (along with future advancements) will require additional revenue streams generated by new ad-supported business model dollars. Video service providers—whether MSO, satellite or telco—must improve relationships with content providers and advertisers while ensuring the network can handle interactive applications, providing an internet-type experience for the viewing audience.

It’s advantageous to be an MSO right now because advertisers are looking for new and innovative means to reach an audience. Unlike their telco competition, MSOs have a well-established base of subscribers and can implement new technologies, such as switched digital video (SDV), which will enable targeted information for advertisers and more relevant content for customers. Although telcos have the greenfield infrastructure advantage, deployment delays and low subscriber counts will prevent any significant contracts for targeted or interactive advertising in the next 2 to 3 years.

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