Advanced TV Ad Revenues to Top $4 Billion

DALLAS: In 2014, advanced TV advertising revenues in the U.S.—including VOD and DVR advertising, plus interactive formats such as microsites and overlays—will top $4 billion, according to new data from Parks Associates.

By the end of this year, the report notes, interactive ad revenues in the U.S. will reach $130 million and will continue to grow thanks to consumer demand for time-shifted TV viewing on VOD and DVR service platforms as well as the widespread deployment of addressable TV advertising platforms. By 2014, U.S. addressable, interactive TV advertising revenue will exceed $4 billion, accounting for nearly 12 percent of total cable, DTH 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.

"Major U.S. cable television operators, direct broadcast satellite (DBS) TV providers, and telcos have identified advanced advertising as a key revenue opportunity moving forward," said Heather Way, a research analyst at Parks Associates. "In the short term, digital TV operators continue to ramp up their investment in advanced advertising solutions as a preemptive move to sustain ad revenues. In the long term, the investment serves to grow the advertising business segment."