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Advanced Video Advertising Report

Quarterly Technology & Content Report - Janaury 2009


Published by MRG, Inc.
January 2009, 86 pages

Hard Copy Print Edition $2495 USD
PDF Single-Departmental License $2995 USD
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The report is available free as part of MRG's IPTV Tracking Service
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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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