Revenues from advertising on interactive television will increase by an average annual rate of 114% in the US over the next three years, according to TRACE strategies, a Boston-based research firm.
In a report issued this week, TRACE projects that interactive TV advertising will be worth $2.1 billion in 2005, equivalent to 6.3% of total TV adspend. Interactive program guides will be the main earner, bringing in over $794 million while Video On Demand, Walled Gardens and Enhanced/Interactive Video will also see revenues jump.
“Television advertising is going through a paradigm shift where agencies and media buyers are focused on creating more compelling ad campaigns over interactive TV programs and applications,” said the report.
Increased take-up will drive the rapid growth in adspend with TRACE predicting that 122 million US homes will have interactive TV by 2005.
