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Broadcasters Reaching ‘Tipping Point’ for Multichannel Advertising

  11 July, 2012

Videoplaza LogoVideoplaza, a sell side ad management platform, has published a report stating that broadcasters need to invest more in monetising IP-delivered video content if they’re to keep pace with changing consumer habits. The study, conducted with analyst house IHS Screen Digest, found that while TV remains first choice for reaching audiences at a scale, in future broadcasters will become increasingly dependent on multichannel revenues to drive growth.

Daniel Knapp, Director of Advertising Research, IHS Screen Digest, said “The tipping point is happening now – 8% of online display advertising revenue in 2011 came from video. We expect high growth in the sector to continue in 2012, with a revenue increase of 53% in the big 5 European markets.

He continued: “Media companies realistically have a 12-24 month window of opportunity to get prepared before the audience significantly shifts on to multiple devices. With fewer and fewer barriers to IP-delivered video, the competition from new players in the connected space is also set to intensify. This means that broadcasters should act fast to monetise their content equity.”

The report, titled ‘A Future for TV: IP-delivered video in a connected world’, also contains some interesting (and rare) information on the top five European video advertising markets, which in 2011 totalled around €300 million, excluding YouTube’s revenues:

European Video Advertising Market Graph








The study also found that – with TV advertising growth expected to stagnate over the next five years – content owners will have to increasingly look to IP-delivered channels for growth.

IPTV and TV Advertising Spend






Other Key Findings:

    • Videoplaza’s broadcaster clients have found that ad delivery to connected devices other than the PC grew from under 2% to over 16% in the last year.
    • There are already 124m connected living room devices in Western Europe and North America. By the end of 2014, there will be more connected living room devices than PC or TV households.
    • The growth in connected devices is leading to audience fragmentation due to the increasing number of content options, which in turn drive sup the cost and the competition to reach viewers scattered across platforms and devices.
    • Audience reach needs to be complemented by ad reach as a way to re-unite a widely dispersed audience. The connected device landscape must be forged into a cohesive ecosystem that combines the delivery of content and its monetisation.

You can download the full report here.

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