HD Spots Grab 20% Of TV Ad Inventory

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HD commercials now comprise almost 20% of all TV commercials -- about double the share they had a year ago.

For the second quarter of 2011, a new study from Extreme Reach says the reason for the spike is lower distribution costs, more local TV adoption of HD commercials and a simpler execution of HD spots in overall campaigns.

Extreme Research says these factors are important, considering a slower growth in HD advertising in 2010.

Low-cost, cloud-based services have driven down costs for some business segments by 30%. The company says 94% of local TV stations that can take HD commercials use cloud-based services. Overall, 44% of local TV stations and 63% of cable operators can take HD commercials -- versus a 27% number for TV stations and 50% by cable operators.

The boost has been pushed by different levels of advertisers.

Where only major big brand advertisers had used HD commercials, now regional and smaller markers -- grocery stores and regional auto dealerships -- are incorporating HD messaging into their campaigns.

Says John Roland, CEO of Extreme Reach: "Advertisers had been in a holding pattern for a while when it came to HD. The Q2 numbers reaffirm what we've heard from advertisers for a while: When key industry hurdles to adoption become less pronounced, you'll see more and more HD ads on TV."

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