Wednesday, July 11, 2012, 8:50 AM ET|Posted by Will Richmond
A new report being released today from London-based video ad technology provider Videoplaza, and research firm IHS Screen Digest adds to the case that broadcasters must diversify into IP-based delivery of their content to multiple devices in order to achieve continued growth. The report, "A Future for TV: IP-delivered Video Advertising in a Connected World" presents new data on adoption of connected devices by TV and PC households in North America and Western Europe, share of ads now being delivered by non-PC devices and video ad loads by device, among other data.
The report notes that while TV advertising will continue to dominate, it is projected to be relatively flat (1.4% growth in Western Europe and 2.5% in the U.S. for the next 5 years), thereby requiring broadcasters seeking growth to aggressively deploy content to connected devices and pursue related advertising opportunities. With an influx of new IP-centric content providers vying for audience and ad spending, Videoplaza's founder and CEO Sorosh Tavakoli told me last week he sees "TV budgets being up for grabs" in the coming years.
To compete effectively, the report advocates for broadcasters adopting what it calls a "device-agnostic and device-committed" strategy, where advertising can flow seamlessly to multiple devices, while still being optimized for the context of each. Sorosh concedes that none of this is easy for broadcasters, and that we're in the early phase of a very chaotic period.
The full report is available for complimentary download here.
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