Increasing online viewership intensifies competition

As U.S. video viewers increase their multiplatform viewing habits, advertising firms’ demand for an integrated tool to measure both TV and online video viewing will intensify over the next year. A new report, Cross-Platform Ad Metrics & Reporting, shows 71 percent of U.S. broadband households access videos online, compared to 87% who watch traditional TV content. Younger audiences, ages 18-34, are even more inclined to watch online video, with 88% watching online compared to 90% who watch traditional TV.

Online video viewing is approaching parity with traditional TV, especially in key audience segments, which is increasing pressure on the top firms to develop a comprehensive tool to quantify and evaluate the impact of online video content. Right now, Nielsen, Kantar Media, TiVo, Arbitron, and Rentrak are the primary cross-platform digital video audience measurement firms in the U.S.

Mixed media are increasingly important to a key and growing segment of consumers, and companies need to get ahead of this trend with cross-platform metrics in order to assess, assign, and evaluate the overall media mix. Nielsen plans to release an integrated TV and online video product in 2011, but it is unclear how the industry will receive the combined video metric and, more importantly, if the firm will meet its expected deliverable goal. In Cross-Platform Ad Metrics & Reporting, Parks Associates lists universal metric definitions, standards, and data collection methods as necessary to ensure industry-wide adoption of a new metric.

Cross-Platform Ad Metrics & Reporting provides a competitive analysis of the leading digital TV and online video audience measurement firms in the U.S. The study employs a competitor analysis framework, using competitor profiling, to determine which digital video audience measurement firms are strategically positioned to provide an industry-recognized, cross-platform digital video audience metric standard. In addition to the competitor analysis, the report examines multiplatform video usage trends based on key audience demographics.

Bye, Bye IMMI. Hello, New and Improved PPM.

As I finalize a new Parks Associates report assessing the digital video ad metrics market, I’m reminded of a blog I posted two years ago, New Audience Measurement System? What about the PPM?

In the blog, I compared Integrated Media Measurement Inc’s (IMMI) mobile phone-based digital monitoring technology to Arbitron’s Portable People Meter (PPM). At the time I questioned, “What does IMMI’s product mean for Arbitron’s PPM?” and “Do these two services compete for the same market?”

I made the point that IMMI was a potential threat to Arbitron’s business. I argued IMMI’s technology was superior to the PPM and until the PPM measures media across multiple platforms as it is was designed to do then strategic opportunities will be created for companies like IMMI.

While I realize its old news, I think it’s safe to say Arbitron shared this point-of-view. In June, Arbitron announced the acquisition of IMMI’s technology portfolio, patents, and trade name. Immediately following the announcement, Arbitron rolled out a new version of the PPM, the PPM 360. The PPM 360 extends the original technology to the mobile wireless platform.

Hmmm…looks like Arbitron hasn't quite given up on its initial goal to track audiences across multiple media platforms.

*Effective October 2010, IMMI’s CEO, Bill McKenna was named SVP of New Media Ventures at Arbitron. Per IMMI’s press contact on November 9, 2010, the company has been officially absorbed by Arbitron.

U.S. online video advertising revenue will exceed $1.3 billion in 2010

Steady growth in online video viewership, combined with the ability to target specific viewers based on preferences and viewing history, will push U.S. revenues for online video advertising over $1.3 billion in 2010.

Online Video Advertising: Strategies & Results, finds large percentages of consumers, especially younger consumers, have yet to form a strong opinion regarding targeted advertising. These advertisements include commercials shown before an online video or overlays displayed during the show, with the content based on the user’s Internet, TV, and mobile usage and viewing habits.

Among U.S. broadband households, almost 50% of heads-of-household aged 18-34 are indifferent to targeted advertising, while 42% aged 25-54 and 25% aged 55 or older are similarly neutral. The younger age groups are more receptive to the concept of targeted advertising, and advertisers place a premium on the ability to reach these demographics.

While online video does not yet have the same audience reach as traditional broadcast and cable TV, the medium continues to grow its user base, and increased content offerings via TV Everywhere initiatives will bring in more viewers and boost advertising revenues. Currently over 50% of heads-of-household 25-54 watch online video at least weekly, and the percentage jumps to 75% for ages 18-34.

Advanced Advertising Session addresses new content distribution models, ad solutions, and revenue opportunities

Parks Associates is hosting a special research presentation, “Advanced Advertising: Engaging the Digitally Connected Generation,” sponsored by Chase Paymentech, on Wednesday, May 5, at Digital Hollywood in Santa Monica, Calif.

Parks Associates estimates revenue from addressable, interactive TV advertising will reach $133 million in 2010 and will increase to $4.3 billion by 2014. Digital media technologies (DVR, advanced TV, Internet, and mobile) have changed the game for service providers, technologists, content owners, and advertisers, creating new content distribution models, ad delivery solutions, audience measurement capabilities, and revenue opportunities.

Join Heather Way, Research Analyst, Parks Associates, as she will discuss strategies for industry players and investors to capitalize on digital media platforms and services in order to build revenues and increase consumer engagement.

Parks Associates will be in Booth #2 during Digital Hollywood, May 3-6.

Request your complimentary pass to attend the research presentation by completing this online form.

Addressable, interactive TV advertising revenue will reach $133 million in 2010

Sixty seven percent of all U.S. TV households (HHs) subscribe to a digital TV service. Digital cable and satellite television cumulatively account for over 65% of the pay TV market in the U.S. At the end of 2008, there were approximately 2.9 million Telco/IPTV subscribers. Parks Associates estimates addressable, interactive TV advertising revenue will reach $133 million in 2010. By 2014, U.S. addressable, interactive TV advertising revenue will reach approximately $4.3 billion.

Register today for the webcast on March 25 and learn more about advanced TV advertising.

Advertising dollars shifting from traditional formats to addressable advertising

Ad budgets and consumer video viewing are shifting to the Internet, and emerging digital media platforms are threatening the traditional television advertising business. In 2010, 40% of ad or media agency buyers will shift 11 to 15% of total traditional or cable TV budgets to addressable advertising campaigns while 16% will move more than 20% of total TV ad budgets.

Register today for the webcast on March 25 and learn more about changes in the TV advertising industry.

Parks Associates hosting Advances in Television Advertising Webcast

Parks Associates is hosting a Advances in Television Advertising on Thursday, March 25th at 1 PM Central.

Major pay TV service providers have identified advanced TV advertising as a key revenue opportunity for 2010 and beyond. Ad budgets and consumer video viewing are shifting to the Internet, and emerging digital media platforms are threatening the traditional television advertising business. Even so, cable TV operators continue to ramp up their investment in advanced advertising solutions as a preemptive move to sustain ad revenues in the short term. In the long term, the investment serves to grow the advertising business segment.

This webcast features analysis and forecasts from Parks Associates examining the following questions:

- What key players and technologies will further industry growth?
- Will pay TV providers successfully integrate advanced TV advertising into their existing infrastructures?
- What is the main focus of Canoe Ventures?
- What are the existing and proposed business and pricing models?

For more information, visit
www.parksassociates.com/events/webcasts.htm

Parks Associates forecasts advanced TV, mobile advertising, and social networking to lead long-term recovery in U.S. ad spending

Targeted and interactive TV advertising will lay the foundation for the long-term recovery of U.S. ad spending, while spending on broadcast network TV will return to pre-recession levels in 2010, leading the more immediate recovery, according to Advertising Outlook: Shifting Dollars.

This new report from international research firm Parks Associates features a survey of U.S. advertising and media executives and found this group optimistic about 2010 ad spending as well as the long-term impact of advanced advertising formats. A majority would pay a premium for addressable TV ads, with almost 40% willing to pay upwards of 20% more over traditional TV ads.

Addressable TV ads, defined as TV commercials delivered via set-top box to viewers targeted by demographic information, viewing interests, or geography, represent a small portion of current ad budgets but will command higher premiums as more digital TV service operators add addressability within their offerings.

Advertising Outlook: Shifting Dollars also found almost 60% of media decision makers expect spending increases in broadcast network TV in 2010 and over three-fourths expect a budget increase for social networking advertising. Spending on all major mobile advertising formats will likewise increase, with branded microsites, mobile video, and text messaging expected to reap the largest year-over-year percentage gains.

For the full press release, click here.

Parks Associates is Supporting Digital Hollywood at CES

Parks Associates is supporting Digital Hollywood at CES from January 6-9, 2010 in Las Vegas, NV.

Heather Way, Research Analyst, Parks Associates will be moderating the session, "Internet Video, Advertising & Marketing: The Next Generation of Consumer Reach" on Saturday, January 9 from 10:30 AM - 11:30 AM.

Video on the Internet has finally passed the critical threshold of acceptance by the advertising and marketing communities as a more than viable alternative to traditional media. Internet delivered video has not only entered the advertising space, it has invaded it and in a very short number of years, Internet delivered video will be a dominant entertainment and communications consumer medium. The scary part for traditional media, Internet delivered video may end up on a PC, a mobile device or on a TV and for the advertising and marketing industries, an emerging and maturing delivery system to an ever elusive audience is exactly what they are looking for.

For more information, please click here.

CONNECTIONS™ Summit and other speaking engagements focus on home entertainment and Web connectivity

Parks Associates market analysts will present new research and provide insight and commentary about new business strategies, new technologies, and consumer demand for connected CE and services at multiple speaking events during the 2010 International CES (Consumer Electronics Show).

Parks Associates will host the fourth-annual CONNECTIONS™ Summit: Monetizing Connectivity in the Home on January 7, the first day of CES. The analysts will also participate at Digital Media Insider, Digital Health Summit, and Digital Hollywood on January 8 and 9.

CONNECTIONS™ Summit will kick off CES on Thursday, January 7. The Summit will feature interactive panels with over 20 leading technology companies including IBM, Yahoo!, and Sony. Executives will discuss business strategies for service providers, status of energy management deployment and adoption, and the changing CE purchase patterns for consumers.

Parks Associates will also participate in the following CES events:

- Kurt Scherf, VP & Principal Analyst, will speak at an Analyst and Press Roundtable “What’s the Scoop at CES?” at Digital Media Insider @ CES on Friday, January 8, 3:15-3:55 P.M. at The Venetian, Las Vegas, Ballrooms 3204-05/3304-05.

- Harry Wang, Director, Health & Mobile Product Research, will participate on the panel “Consumers Driving Healthcare: Capitalizing on the Opportunities” at Digital Health Summit at CES on Saturday, January 9, 9:00-9:45 A.M. in LVCC, North Hall, Ballroom N253.

- Heather Way, Research Analyst, will moderate the panel “Internet Video, Advertising & Marketing: The Next Generation of Consumer Reach” at Digital Hollywood @ CES on Saturday, January 9, 10:30-11:30 A.M. in the LVCC, North Hall N261.

Advanced TV ad revenues to top $4 billion in 2014, as digital TV providers capitalize on demand for VOD and DVRs

The pay-TV industry will start to see success in advanced TV advertising beginning mid-2010, with U.S. revenues topping $130 million by year-end, according to the new Parks Associates report Addressable, Interactive TV Advertising in the U.S.

Consumer demand for time-shifted TV viewing on VOD and DVR service platforms, combined with the broad deployment of Canoe Ventures’ national addressable TV advertising platform, will drive the growth in advanced TV advertising. By 2014, U.S. addressable, interactive TV advertising revenue will exceed $4 billion, accounting for nearly 12% of total cable, DBS, and telco TV ad revenue.

Advanced TV advertising includes traditional linear 30-second ads and non-linear ads that include VOD and DVR advertising and interactive formats, such as overlay, tags, IPG banners, microsites, RFI, showcases, and telescoping.

Addressable, Interactive TV Advertising in the U.S. highlights the key advanced TV advertising industry players and examines the business and technology drivers shaping the advanced television services segment. In addition, the report studies the existing business models and discusses how the models will change to accommodate addressable and interactive TV advertising solutions. The report concludes with advertising revenue forecasts, implications, and recommendations for industry investors.

Smartphones, Data Plans, New Apps to drive Mobile Advertising Revenues to $1.5 billion in 2013

Revenues for mobile advertising in the U.S. and Canada will grow from $208 million in 2009 to approximately $1.5 billion by 2013, according to the new Parks Associates report Mobile Advertising: Analysis and Forecasts. Adoption of smartphones, 3G network data plans (or newer wireless services), and downloadable applications will spur this growth in ad revenues, with significant increases beginning in 2010.

Parks Associates estimates there were 62 million smartphone users in North America in 2008, with user penetration to reach 239 million in 2013. Parks Associates projects U.S. 3G network data plans will reach 95% penetration by 2013, with Canada achieving 70% penetration.

Mobile advertising is poised to take advantage of opportunities presented by the diffusion of 3G networks and devices such as the smartphone. Advertisers will begin to incorporate mobile into their media campaigns as this medium matures into a viable marketing space.

Way cautions that advertisers could encounter early resistance from consumers. Parks Associates’ Mobile Entertainment (Second Edition) found 38% of respondents do not want to receive mobile ads, while 37% remain neutral to the idea of ads on their mobile phone.

However, teens and young adults are more receptive to ad-supported mobile content, particularly in entertainment genres. Advertisers need to develop innovative ways to reach these consumers.

Mobile Advertising: Analysis and Forecasts examines the current mobile advertising market. It includes a market overview and analyzes effective mobile ad formats and current pricing models. The report examines opportunities driving overall growth and inhibitors threatening continued expansion and includes mobile advertising revenue forecasts through 2013.

For the full press release, click here.