US advanced TV advertising to generate modest growth in 2010
Advanced TV advertising in the United States is poised to generate modest growth starting in 2010, according to a new report from Magna.
It said that, with such a wide variety of approaches, advanced TV is similar to mobile advertising in that it reflects a collection of widely varying media types all centred around one key consumer device.
Magna expects virtually flat growth in 2009 that may lead to double digit gains as infrastructure and inventory come together through 2010, by which point it expects $168 million in total advanced TV advertising.
VOD is still the largest component of advanced TV advertising, accounting for about half of the total, said Magna, although VOD advertising fell in 2008 and may do so again in 2009.
Magna said that this is partially due to broader economic issues, but also because of advertiser frustration around the lack of dynamic ad insertion, lead times to buy in excess of one month and limited availability of premium content assets.
In an earlier report, Magna forecast that VOD will reach 67.2 million households by 2014, compared with 41.7 million VOD households at the end of 2008 (see US DVR subscriber households to hit 51.1m by end of 2014).
Elsewhere, BIA Advisory Services predicted that revenue in the US television industry will fall below the $20 billion mark this year (see US TV ad revenue to fall below $20bn mark this year).
After six years with US TV revenue hovering between $20-22 billion, BIA expects 2009 to end at $17 billion in revenues, a 21.2% drop from 2007’s $21.5 billion.