Parks Associates Blog

Wednesday, October 22, 2008

Perfect Storm for Success: Advanced Cable Advertising

Yesterday, I attended the Advanced Advertising for Cable: Winning Back the Ad Dollar webinar hosted by Light Reading’s Cable Digital News. The event was sponsored by technology providers, ARRIS and Cisco Systems Inc. with the discussion lead by Paul Delzio, Director of Product Strategy at ARRIS and Philip Jacobs, Senior Engineering Manager of Cisco Systems Inc.

The webinar was a call-to-action for the advancement of advanced cable advertising – addressability, interactivity, direct response, and targeted advertising via cable operators’ systems. With the creation of Canoe Ventures LLC, major U.S. MSOs have identified advanced advertising as a key, and essential, revenue opportunity for 2009 and beyond. Currently, cable television advertising is threatened by new and existing ad budget shifts to the Internet and emerging digital media platforms.

The webinar detailed the different types of advanced advertising models currently under development for the cable service provider industry. Advanced advertising categories, such as interactive TV (ITV), advanced linear advertising-network based and via set top box, DVR based, dynamic VOD advertising (Ad VOD), request for information (RFI), and interactive overlays were identified as strategic market opportunities for cable service providers nationwide. Delzio predicted such advanced ad types will be deployed within the next 12 months. The webinar also discussed the technical standards and specifications including SCTE 130, tru2way, and EBIF as emerging solutions for advanced CATV advertising.

The presentation was informative and timely. As standardization efforts and specifications emerge addressing advanced CATV advertising, new revenue opportunities are created for major cable television providers. Therefore, the cable industry must act now and without delay. As suggested in the presentation, “CATV advertising is under assault.” The question is: “Will MSOs embrace advanced cable advertising?” As Canoe Ventures LLC leads the way toward the development and employment of advanced CATV advertising and based on a poll conducted during the webinar (see results below), I would conclude that the answer to the question is an unequivocal, “Yes!” The investment in advanced advertising by cable service providers is an essential business strategy moving forward in the digital age.

Advanced Advertising for Cable: Winning Back the Ad Dollar Webinar Poll:
“For operators and vendors, how are advanced advertising budget line items expected to evolve from this year and into 2009?”

68.7% of respondents said advanced ad-related budgets are expected to increase
23.4% suggested that advanced ad-related budgets are expected to decrease
7.8% stated that no change is expected

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