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Interactive, VOD Ads On Rise

In 2010, three key areas will start to show critical momentum: interactive ads that let viewers request more information, coupons or product samples; video-on-demand ads that can be served on the fly; and wider availability and use of set-top box metrics for measuring TV viewing.

According to Parks Associates projections, advanced advertising revenue for the pay-TV industry will grow from $130 million in 2010, or 0.5% of their total ad revenue, to more than $4 billion by 2014, representing 12% share of the total. "Traditional TV ad dollars will quickly shift, at rates we've never seen before, to interactive and addressable formats," Parks Associates research analyst Heather Way said. Marketers allocated 41% of their media budgets to TV in 2009, compared with 58% in 2008, per a Forrester/ANA survey. And so TV's share of the pie has dwindled.

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