New ways of viewing video – VOD, on media tablets and smartphones – will cause tectonic shifts in US pay-TV advertising, according to ABI Research. The shift to new formats will drive pay-TV advertisers to re-allocate some $22 billion (30%) of spending by 2016. Similar shifts will be seen in Western Europe, while they will lag in other regions worldwide, ABI forecasts.

A number of unfamiliar, up and coming companies are leading the change by playing a formative role in the emerging video advertising marketplace. ABI identifies Canoe Ventures (interactive ads), BlackArrow (VOD ads), This Technology (dynamic ad platform), INVIDI and Visible World (targetable or addressable ads) among them.

“A shift is already underway in the television advertising marketplace from linear ads inserted by a 24-hour schedule to advanced technologies that will increase the effectiveness of advertisers’ spending,” says Sam Rosen, senior analyst, digital home.

New technologies are achieving scale within broadcasters’ advertising systems, particularly with regard to audience measurement and tracking, targeted advertising, interactive advertising, VOD and multiscreen advertising, as well as other techniques, such as companion devices, ABI notes.

Numerous technology components are needed to deliver new ad formats, offering opportunities for developers and vendors in the emerging ‘ecosystem’. These include:

  • Advertising-specific hardware and software systems, such as ad servers, ad splicers, ad decision systems, and traffic and billing systems
  • Advertising-specific components of set-top box middleware, such as measurement and reporting tools, interactive stacks, and interactive applications
  • Advertising-specific VOD software

Advertising technology used in television, Internet and OTT video platforms, traditional linear TV, “catch-up” TV, DVR/PVR storage and VOD platforms are all discussed in ABI’s “Advanced Advertising Technologies for Pay-TV Platforms” report, along with coverage of interactive platforms, interactive advertising formats and advanced advertising technologies.

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