The rise of VOD consumption across connected devices fails to result in revenue
Recent research from Videoplaza and IHS Screen Digest suggests that despite the popularity and growth of video consumption across numerous devices, advertisers are failing to effectively turn this in to revenue.
The report, A Future for TV; IP-delivered video advertising in a connected world, points out that while consumers have been embracing IP-delivered content, the TV ad market is not growing. There appears to be a lack of a clear strategy from broadcasters in order to fully exploit the current trend. The report goes on to say that we’re currently at a tipping point, broadcasters need to act fast in order to keep or expand current market share.
- Whilst TV still provides superior reach the Broadcast TV ad market is not growing – TV ad spend is flat in W Europe and the USA
- There are already 124m connected living room devices in Western Europe and North America
- IP-delivered video advertising is not following the upward trend of video consumption on connected devices at the same rate, although it’s growing faster than TV. In 2012 revenues will reach €460m (or around 2% of global TV ad spend), a growth rate of 53% from 2011
- Media owners risk missing out on growth, at the current rate of adoption, by not monetising services that address a full range of connected devices
- Ad delivery to non-PC connected devices grew from under 2% to over 16% in the last year, based on data from Videoplaza’s broadcaster clients
A full version of the report can be downloaded here.