starting up the selling of advertising via video-on-demand programming through “dynamic ad insertion” to marketers.
Through dynamic ad insertion, TV commercials on VOD services
can be swapped out and new TV commercials inserted into programming after a three-day time period -- thus significantly adding new advertising revenue for the network.
all national TV advertising revenue comes from traditional linear TV programming deals pegged to the C3 metric -- average commercial ratings plus three days of time-shifted viewing. Networks have been
pushing for advertisers to pay for all TV viewing beyond the three-day period -- including that of TV programming delivered via its linear TV network.
For its VOD efforts, CBS is working
with Canoe Ventures and its partners -- which include Comcast, Time Warner, Cox Communications and Bright House Networks.
Network TV advertising sellers have been touting the revenue
generated by dynamic ad insertion for some time. One estimate says revenue from dynamic ad insertion amounted to $150 million in 2013. Projections indicate that the business could grow quickly to
around $1 billion a few years.
Jo Ann Ross, president of advertising sales at the CBS Television Network, stated: “Our advertisers recognize the value of delayed viewing both in terms
of sheer volume and the quality of the audience it delivers. Having the ability to switch creative copy in a significant portion of this footprint makes VOD an even more attractive option for clients
“With the launch of dynamic ad insertion we are unlocking new and valuable on-demand inventory for our advertisers with added reach and flexibility,” said
Marc DeBevoise, executive vice president/general manager of entertainment, sports and news of CBS Interactive.
With this effort, CBS looks to grab not just new advertising dollars but
younger TV viewers whose behavior increasingly leans to time-shifted programming