Advanced Video Advertising Report
Quarterly Technology & Content Report - Janaury 2009
Published by MRG, Inc.
January 2009, 86 pages
Hard Copy Print Edition $2495 USD
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Executive Summary
This report covers global
developments in “Advanced Video Advertising" (AVA), which refers to forms of advertising beyond traditional insert advertising, with the end device being the TV set. This report compares traditional and interactive TV advertising techniques; and provides an ROI calculation for each of the six AVA methods being trialed in the global advertising markets in both Cable and Telco TV operations. It also examines Internet video advertising to help determine models that can work in Advanced Video Advertising applications for both Cable and IPTV Operators.
Table 1-2
shows global growth in ad spending negative for Newspapers, Magazines, and Radio in 2009, with slight increases for TV, Cinema, Outdoor and Internet.
Table 1-2: Global Ad Spending By Medium ($US, Billions)
| |
2007a |
2008e |
2009e |
TV |
$180 |
$184 |
$185 |
Newspapers |
$130 |
$123 |
$115 |
Magazines |
$58 |
$56 |
$54 |
Internet |
$41 |
$50 |
$59 |
Radio |
$38 |
$37 |
$34 |
Outdoor |
$31 |
$33 |
$34 |
Cinema |
$2.3 |
$2.5 |
$2.6 |
Source:
ZenithOptimedia
Table 1-2 also shows global ad spending for all media. TV and Newspapers are still the largest forms by twice as much as the next closest form of advertising. Newspaper ads are declining but at a slow rate so they will still be a dominant form for some time. Internet advertising is rising and will overtake radio advertising next year.
Table 1-3 from a 2008 forecast, shows a decline in ad revenue for 2008 for the U.S. and Western Europe, while the rest of the world experiences increases. 2009 has a steeper decline for the U.S. with a slight decline for Western Europe producing an overall decline for 2009, despite increases for all other regions in 2009.
Table 1-3: Global Ad Spending By Region, 2008-2009
Media, US Dollars (millions) |
2006 |
2007 |
2008f |
2009f |
North America |
$167,327 |
$188,000 |
$182,000 |
$175,000 |
USA |
$158,067 |
$162,000 |
$152,000 |
$145,000 |
Latin America |
$16,314 |
$18,166 |
$19,972 |
$21,597 |
Western Europe |
$109,650 |
$120,000 |
$119,000 |
$118,000 |
Emerging Europe |
$16,318 |
$19,606 |
$35,000 |
$21,259 |
Asia-Pacific (all) |
$102,994 |
$103,000 |
$106,000 |
$109,000 |
North Asia |
$34,690 |
$39,761 |
$46,192 |
$51,164 |
ASEAN |
$7,968 |
$8,722 |
$9,493 |
$9,929 |
Middle East, Africa, ROW |
$12,000 |
$17,000 |
$18,000 |
$21,000 |
World |
$424,603 |
$468,772 |
$479,972 |
$477,856 |
Source:
Copyright © 2008 MRG,Inc., ZenithOptimedia, GroupM "This Year, Next Year" Report, 2008
(Regions in italics are sub-sets of the larger region they are in; USA is a sub-set of North America, for example.)
This report is part of the IPTV Tracking Service published by the Multimedia Research Group, Inc.
Table of Contents
| 1 |
Executive Summary |
| |
|
| 2 |
Background on the Ad Industry |
| 2.1 |
Overview |
| 2.2 |
TV Centric Advertising – Background |
| 2.3 |
Internet Centric Advertising – Background |
| 2.3.1 |
Linear Video Ads (Online Video) |
| 2.3.2 |
Non-Linear Video Ads (Online Video) |
| 2.3.3 |
Companion Ads (Online Video) |
| 2.3.4 |
The Google Effect – Background |
| 2.4 |
Background of Targeted Video Advertising |
| |
|
| 3 |
Top Business Models for Advanced (Interactive) Video Advertising |
| 3.1 |
Overview |
| 3.2 |
VOD (FOD) |
| 3.3 |
RFI |
| 3.4 |
Voting/Polling |
| 3.5 |
DVR |
| 3.6 |
Recommendations |
| |
|
| 4 |
Issues Around Targeting |
| 4.1 |
General Comments |
| 4.1.1 |
Agencies Need to Think More Holistically |
| 4.1.2 |
Advertisers Need to Think Differently |
| 4.1.3 |
Privacy |
| 4.1.4 |
Advanced Platforms Need Greater Numbers |
| 4.1.5 |
The System is Technically Fragmented |
| 4.1.6 |
Operators Need to Commit to Advanced Advertising |
| 4.1.7 |
Children, as a Demographic, Require Additional Security and Privacy |
| 4.1.8 |
Children Also Have a Short Attention Span |
| 4.2 |
Technical Issues |
| 4.3 |
Business Issues |
| |
|
| 5 |
Ad Type Ratings and Criteria |
| 5.1 |
Ad Type Ratings |
| 5.2 |
Important Criteria for Each Ad Type |
| 5.2.1 |
General Comments |
| 5.2.2 |
VOD Ads |
| 5.2.3 |
Banner Ads |
| 5.2.4 |
DVR Ads |
| 5.2.5 |
Telescoping Ads |
| 5.2.6 |
Voting/Polling |
| 5.2.7 |
Social Ads |
| |
|
| 6 |
Global Market Growth Projection 2009-2012 |
| |
|
| 7 |
Vendor Profiles |
| 7.1 |
Active Video Networks (formerly ICTV) |
| 7.1.1 |
Overview |
| 7.1.2 |
Product/Service Offering |
| 7.1.3 |
AVA Types Supported |
| 7.1.4 |
Customer's Current Strategy |
| 7.1.5 |
Current Usage |
| 7.2 |
APRICO (Philips) |
| 7.2.1 |
Overview |
| 7.2.2 |
Product/Service Offering |
| 7.2.3 |
AVA Types Supported |
| 7.2.4 |
Customer's Current Strategy |
| 7.2.5 |
Current Usage |
| 7.3 |
Alcatel-Lucent |
| 7.3.1 |
Overview |
| 7.3.2 |
Product/Service Offering |
| 7.3.3 |
AVA Types Supported |
| 7.3.4 |
Customer's Current Strategy |
| 7.3.5 |
Current Usage |
| 7.4 |
ARRIS |
| 7.4.1 |
Overview |
| 7.4.2 |
Product/Service Offering |
| 7.4.3 |
AVA Types Supported |
| 7.4.4 |
Customer's Current Strategy |
| 7.4.5 |
Current Usage |
| 7.5 |
Black Arrow |
| 7.5.1 |
Overview |
| 7.5.2 |
Product/Service Offering |
| 7.5.3 |
AVA Types Supported |
| 7.5.4 |
Customer's Current Strategy |
| 7.5.5 |
Current Usage |
| 7.6 |
Canoe Ventures, LLC |
| 7.6.1 |
Overview |
| 7.6.2 |
Service Offering |
| 7.6.3 |
AVA Types Supported |
| 7.6.4 |
Customer's Current Strategy |
| 7.6.5 |
Current Usage |
| 7.7 |
Cisco |
| 7.7.1 |
Overview |
| 7.7.2 |
Product/Service Offering |
| 7.7.3 |
AVA Types Supported |
| 7.7.4 |
Customer's Current Strategy |
| 7.7.5 |
Current Usage |
| 7.8 |
Harmonic Incorporated |
| 7.8.1 |
Overview |
| 7.8.2 |
Product/Service Offering |
| 7.8.3 |
AVA Types Supported |
| 7.8.4 |
Customer's Current Strategy |
| 7.8.5 |
Current Usage |
| 7.9 |
INVIDI Technology Corporation |
| 7.9.1 |
Overview |
| 7.9.2 |
Service Offering |
| 7.9.3 |
AVA Types Supported |
| 7.9.4 |
Customer's Current Strategy |
| 7.9.5 |
Current Usage |
| 7.10 |
Microsoft |
| 7.10.1 |
Overview |
| 7.10.2 |
Service Offering |
| 7.10.3 |
AVA Types Supported |
| 7.10.4 |
Customer's Current Strategy |
| 7.10.5 |
Current Usage |
| 7.11 |
Motorola |
| 7.11.1 |
Overview |
| 7.11.2 |
Product/Service Offering |
| 7.11.3 |
AVA Types Supported |
| 7.11.4 |
Customer's Current Strategy |
| 7.11.5 |
Current Usage |
| 7.12 |
Opera Software ASA |
| 7.12.1 |
Overview |
| 7.12.2 |
Service Offering |
| 7.12.3 |
AVA Types Supported |
| 7.12.4 |
Customer's Current Strategy |
| 7.12.5 |
Current Usage |
| 7.13 |
Packet Vision |
| 7.13.1 |
Overview |
| 7.13.2 |
Product/Service Offering |
| 7.13.3 |
AVA Types Supported |
| 7.13.4 |
Customer's Current Strategy |
| 7.13.5 |
Current Usage |
| 7.14 |
Rentrak |
| 7.14.1 |
Overview |
| 7.14.2 |
Service Offering |
| 7.14.3 |
AVA Types Supported |
| 7.14.4 |
Current Strategy |
| 7.14.5 |
Current Usage |
| 7.15 |
SeaChange International |
| 7.15.1 |
Overview |
| 7.15.2 |
Product/Service Offering |
| 7.15.3 |
AVA Types Supported |
| 7.15.4 |
Customer's Current Strategy |
| 7.15.5 |
Current Usage |
| 7.16 |
TANDBERG Television |
| 7.16.1 |
Overview |
| 7.16.2 |
Product/Service Offering |
| 7.16.3 |
AVA Types Supported |
| 7.16.4 |
Customer's Current Strategy |
| 7.16.5 |
Current Usage |
| 7.17 |
Overview of All Vendors - Ad Types Supported |
| |
|
| 8 |
Service/Content Provider Profiles |
| 8.1 |
Comcast |
| 8.1.1 |
Overview |
| 8.1.2 |
Service Offering |
| 8.1.3 |
AVA Types Supported |
| 8.1.4 |
Current Strategy |
| 8.1.5 |
Current Usage |
| 8.2 |
Kabillion |
| 8.2.1 |
Overview |
| 8.2.2 |
Service Offering |
| 8.2.3 |
AVA Types Supported |
| 8.2.4 |
Current Strategy |
| 8.2.5 |
Current Usage |
| 8.3 |
Time Warner Cable |
| 8.3.1 |
Overview |
| 8.3.2 |
Service Offering |
| 8.3.3 |
AVA Types Supported |
| 8.3.4 |
Current Strategy |
| 8.3.5 |
Current Usage |
| 8.4 |
TiVo |
| 8.4.1 |
Overview |
| 8.4.2 |
Service Offering |
| 8.4.3 |
AVA Types Supported |
| 8.4.4 |
Current Strategy |
| 8.4.5 |
Current Usage |
| |
|
| 9 |
Advertiser Profiles |
| 9.1 |
Disney |
| 9.2 |
Domino's Pizza |
| 9.3 |
Virgin Media TV |
| |
|
| 10 |
Conclusion |
| |
|
| 11 |
Recommendations |
| |
|
| 12 |
Glossary of Terms |
| |
|
| 13 |
Appendix 1: EBIF Standard |
| |
|
| 14 |
Appendix 2: SCTE 130 Standard |
| |
|
| 15 |
Index of Companies |
Table of Figures
| Figure 1-1: |
Share of Ad Spending by Medium - U.S. |
| Figure 1-2: |
Online (Internet) Video Ad CPMs vs. Broadcast Ad CPMs |
| Figure 2-1: |
2008 – 2009 (projected) U.S. Advertising Industry |
| Figure 2-2: |
Google Revenue, 2001- 2007 (in $millions) |
| Figure 2-3: |
Ferrari Car Ad |
| Figure 2-4: |
Toyota Prius Car Ad |
| Figure 5-1: |
Ad Type Responses |
| Figure 7-1: |
Active Video’s System Overview |
| Figure 7-2: |
Active Video Screen Shot – CNN #1 |
| Figure 7-3: |
Active Video Screen Shot – CNN #2 |
| Figure 7-4: |
APRICO Screen Shot – My Series |
| Figure 7-5: |
APRICO Screen Shot – Mercedes Benz.tv |
| Figure 7-6: |
Harmonic's Ad System Diagram |
| Figure 7-7: |
INVIDI System Diagram |
| Figure 7-8: |
Atlas System Overview |
| Figure 7-9: |
Navic’s Targeting Diagram (Telescoping) |
| Figure 7-10: |
Navic Screen Shot – Targeted Overlay Ad |
| Figure 7-11: |
Navic Screen Shot – RFI |
| Figure 7-12: |
SeaChange's AdPulse System Overview |
| Figure 7-13: |
TANDBERG TV's AdPoint System Flow |
| Figure 8-1: |
TiVo Screen Shot – Program Placement |
| Figure 8-2: |
TiVo Screen Shot – RFI |
| Figure 8-3: |
TiVo Screen Shot – Survey |
| Figure 8-4: |
TiVo Screen Shot – Interactive Tag |
| Figure 9-1: |
Domino's Ad on TiVo |
| Figure 10-1: |
Averages of Ad Type Ratings |
| Figure 10-2: |
Standard Deviation of Ad Type Ratings |
Table of Tables
| Table 1-1: |
Global Advertising Spending Growth |
| Table 1-2: |
Global Ad Spending by Medium ($US, Billions) |
| Table 1-3: |
Global Ad Spending by Region, 2008 - 2009 |
| Table 3-1: |
Cost and Time to Deploy AVA Ad Types |
| Table 6-1: |
Global Ad Spending by Medium, 2006 – 2010 ($Millions) |
| Table 7-1: |
Active Video Networks – AVA Types Supported |
| Table 7-2: |
APRICO – AVA Types Supported |
| Table 7-3: |
Alcatel-Lucent – AVA Types Supported |
| Table 7-4: |
ARRIS – AVA Types Supported |
| Table 7-5: |
Black Arrow – AVA Types Supported |
| Table 7-6: |
Canoe Ventures – AVA Types Supported |
| Table 7-7: |
Cisco – AVA Types Supported |
| Table 7-8: |
Harmonic – AVA Types Supported |
| Table 7-9: |
INVIDI – AVA Types Supported |
| Table 7-10: |
Microsoft – AVA Types Supported |
| Table 7-11: |
Motorola – AVA Types Supported |
| Table 7-12: |
Opera Software – AVA Types Supported |
| Table 7-13: |
Packet Vision – AVA Types Supported |
| Table 7-14: |
Rentrak - AVA Types Supported |
| Table 7-15: |
SeaChange– AVA Types Supported |
| Table 7-16: |
TANDBERG TV – AVA Types Supported |
| Table 7-17: |
All Vendors – Comparison of AVA Types Supported |
| Table 7-18: |
Vendor Product Capabilities |
| Table 8-1: |
Comcast Spotlight – AVA Types Supported |
| Table 8-2: |
Kabillion – AVA Types Supported |
| Table 8-3: |
Time Warner – AVA Types Supported |
| Table 8-4: |
TiVo – AVA Types Supported |
| Table 8-5: |
Operators – Comparison of AVA Types Supported |
| Table 11-1: |
All Vendors – Comparison of AVA Types Supported |
| Table 11-2: |
Vendor Product Capabilities |
Index of Companies
| Active Video Networks |
Microsoft |
| Ad Age |
Motorola |
| Alcatel-Lucent |
MySpace |
| Amino |
|
| APRICO |
Navic Networks |
| aQuative |
NDS |
| ARRIS |
NewTeeVee |
| Ascent Media |
Nielsen |
| Atlas |
|
| Axel Springer |
Oceanic Cable |
| |
Opera Software |
| Black Arrow |
Overture |
| Bright House Networks |
|
| |
Packet Vision |
| CableLabs |
Panasonic |
| Cablevision |
Philips |
| Canoe Ventures |
|
| Charter Communications |
Rapt |
| Cisco |
Rentrak |
| Comcast |
Rhozet |
| Cox Communications |
Royal Philips Electronics |
| |
|
| DirecTV |
Sagem |
| |
SCTE |
| Ericsson |
SeaChange International |
| |
Starcom USA |
| Facebook |
Sunflower Broadband |
| |
|
| Google |
Tamblin |
| |
TANDBERG Television |
| Harmonic |
Telenor |
| HP |
Tilgin |
| |
Time Warner Cable |
| IBM |
TiVo |
| INVIDI |
|
| |
Virgin Media |
| Kabillion |
Visible World |
| |
|
| |
Westell |
Advanced Video Advertising Report — January 2009 is 86 pages and is available in a printed English language edition for $2495 USD, a PDF single-departmental license for $2995 USD, and is available free as part of MRG's IPTV Tracking Service.
For more information or to order the report, contact Rob Smith at 1-408-453-5553
or rsmith@mrgco.com.
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