U.S. advertising companies launch new advertising technology, the market is promising

Foreign media author pointed out that the U.S. advertising company Canoe Ventures recently launched a new advertising technology, so that the TV station can be in the shortest 24 hours, VOD (video-on-demand) programs in the replacement of advertising, and now this process will take days or even weeks of time. In addition, it makes it easier for advertisers to lock down specific groups of people, bringing opportunities to increase their income.

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Dynamic Interrupt Ads

A few weeks ago, Travel Channel Television VOD (video-on-demand) service users, began to see the famous SUV brand Land Rover ads. This is actually a great achievement in American television advertising technology, which media companies hope will help them get more advertising revenue.

According to people familiar with the matter, in addition to Travel Channel parent company Scripps NX Interactive, Comcast's NBCUniversal, A+e NX, News Group's Fox television Network and AMC A number of media companies, such as NX, have either launched "dynamic spots" or are preparing to launch such ads.

The new technology, launched by a company owned by a television operator, allows television stations to replace ads in VOD programs within the shortest 24 hours, and now waits for weeks. If the technology is to take off, VOD service may be more attractive to advertisers. In turn, it is easier for television stations to profit from the growing number of subscribers to the subscription service, which tend to be seen only days or weeks after the program is aired.

For those who have recorded their programs in advance in digital video recorders, they can easily skip ads. However, cable operators often disable the fast-forward feature in VOD services, which could be a more attractive tool for television stations that provide time-shift television.

Broad market Prospects

So far, although the VOD to watch the long growth of stability, but advertisers do not have much interest in this form of service. Technical reasons have always been a major obstacle to the problem: Before that, advertising has been implanted in television programs, which appear when VOD broadcasts them, and it often takes weeks to change ads.

If the advertisement is changed, the TV station must edit the whole program and then submit it to the cable TV operator. Advertisers are not interested in this form of advertising because their VOD projects are outdated, especially those that are sensitive to time, such as retail sales or film screenings.

The new technology, provided by Canoe Ventures, is supported by a number of media companies such as Comcast, Time Warner, Cox Communications, Bright House NX, which allows TV stations to quickly replace VOD ads. Scripps NX Interactive Digital ad sales Executive Vice President Bass. "Speed and efficiency are the biggest advantages of this technology, and advertisers ' satisfaction will increase," says Lawrence Lawrence. We view this as a huge opportunity. ”

Last year, U.S. pay-TV users watched free VOD programs for 4.8 hours a month, up from 3.8 hours in 2011, according to Rentrak, a market research institute. Since 2009, the duration of watching free VOD programs has grown at an annual rate of 19%. But VOD's viewing time pales in comparison to the entire TV market. Nielsen's data showed that in the fourth quarter of 2012, average American users watched TV for about 156 hours a month.

Accurate advertising

In addition, the VOD advertising market is relatively small: SNL Kagan, a market research institute, showed that last year TV content makers and pay-TV operators received about $388 million trillion in total revenues from VOD ads, while the US TV advertising market was up to $64.3 billion trillion. Because of the relatively small size of VOD ad market so far, some of the ads continue to broadcast repeatedly, which annoyed many viewers.

Rentrak that the VOD advertising market growth is facing a major obstacle is that in the built-in advertising TV entertainment programs, 70% of the content is in the original program in the television broadcast at least four days after the show on the VOD. But in general, only three days after the show, advertisers start paying TV stations. If the TV station on the VOD put on the same as live TV commercials, then when the VOD users in the program three days before the show, it will also bring many benefits to the television station.

Supporters of the dynamic advertising campaign say that with the advent of the new technology, it is easier for TV stations to make money from later broadcasts and to remove irrelevant ads. In addition to the increased VOD viewing time, the move has also stimulated the interest of some advertisers, who have been looking forward to the maturity of VOD services over the past decade.

Laying the groundwork for income generation

Michael GroupM, head of emerging communications technology at WPP's advertising agency. Borogna (Michael Bologna) said: "Before this, VOD has been a worthless advertising medium." "Borogna and other advertisers believe that the technology also makes it easier for advertisers to target specific users, drawing on the experience of online advertising.

Many advertisers are also changing their previous bad impressions of VOD. VivaKi Innovation Business executive vice President Tracy. Spache Tracey Scheppach said: "Most advertisers are tired of VOD, but only because it's challenging and doesn't mean it can't be changed." We have rekindled our enthusiasm for VOD. "VivaKi is a media company Publicis Groupe's advertising agency, which and GroupM have both purchased dynamic advertising spots.

The advent of new technology also means a shift in the development strategy of Canoe Ventures, which initially focused on developing precision advertising products for live television programmes. Canoe Ventures's services currently cover 28 million families across the United States, including Comcast and Time Warner Cable TV users.

Matt, senior vice president of Comcast Digital and emerging platforms. Matt Strauss said the company had amassed a large audience since the launch of the VOD service 20 ago. Currently, about three-fourths of Comcast users use VOD services. "We've made the basis for generating revenue from this group of users," he said, "and the last piece of the puzzle is to provide programmers with the tools to dynamically insert ads." ”