TV Advertising is being impacted by the Internet and by mobile services that provide highly personalized content delivery. Traditional TV programs deliver the most repeatable audiences. Subscription TV Networks are adding new, more finely targeted TV channels.

 

　　Some of the findings in this report are:

 

　　-Traditional TV programming provides an excellent mechanism for delivering Addressable Advertising.

 

　　-The infrastructures for TV program delivery are complex, and intertwined. They present advertisers with a wide range of choices that overlap, duplicate, or have exclusivity.

 

　　-Advertising buyers understand the complex nature of the US media delivery industry. It will take them time to adapt to new hardware-based opportunities that seem so promising.

 

　　-Nationwide Broadcast Networks and Subscription TV Networks will continue to be the best delivery vehicles for mass market TV advertising.

 

　　-Advertising that targets identifiable ethnic, cultural, language or special-interest audiences will see above-average growth rates through 2012.

 

　　-Geographic advertising is expected to grow to about 30% of US TV ad spending. The Cable TV industry's Project Canoe initiative will help drive this trend forward.

 

　　-Hardware-Based Addressable Advertising solutions already exist on the Internet, and solutions based on Set Top Box addressability will be growing on a market-by-market basis.

•     Addressable TV Advertising Slowly Arrives

•     Addressable Advertising Appears on the Near Horizon

o     Estimates for the Annual Value of US Advertising Spending by Category

o     Addressable Advertising Fills the Need for Personalization

o     Subscription TV Networks Provide the FIRST WAVE of Personalization

o     High Definition Programming Creates Momentum for Traditional TV

o     The Internet is the SECOND WAVE of Personalization

o     Local Ad Insertion is the THIRD WAVE of Personalization

•     Infrastructure for Addressable Advertising

o     Consumers Have Multiple Ways to Receive Content

o     Content Flows Through Multiple Gate Keepers on its Way to Consumers

•     Content, and Addressable Ads, Flow Through a Complex Infrastructure With Overlap, Duplication, and Exclusivity

o     High Definition, Standard Definition, Internet, and Mobile Versions of Content and Advertising Make Everything Much More Complicated

•     National Broadcast TV Networks (ABC, CBS, etc.)

o     National Networks Work Through Local Affiliates

o     Local Affiliate Agreements Are in a State of Flux

o     Nationwide Advertising Staging and Clearinghouse

o     DG FastChannel

o     Run Digital Media

o     National Networks and Local Affiliates Also Support Internet Services

o     Internet Content is Repurposed for In-Band Cellular Phone Applications

o     Local TV Stations May Also Air Syndicated Programming That Does Not Come From a National Broadcast Network

o     Local Affiliates May Share Local Content With the National Network

•     Local TV Stations Present Their Own Ecosystem

o     Retransmission Consent Opens New Doors for Local TV

o     Local TV Stations Interface to Local Cable TV Systems

o     Local TV Stations Also Interconnect to National Satellite TV Services

o     Local TV Stations Also Connecting to Local TelcoTV Services

•     Subscription TV Networks Similar to National Broadcast Networks

•     Local Cable TV and TelcoTV Services Provide a More Extensive Ecosystem That Distributes TV Networks and Adds VOD

o     Cable TV and TelcoTV Can Insert Advertising in Their Local Headends

o     Local Cable TV and TelcoTV Services Also Producing Their Own Content

•     Internet Services Also Delivering Broadcast, and Other, TV Programming Supported by Addressable Advertising

o     Transcoding of Content and Ads for Delivery Platforms Creates a Problem

o     Metadata Definitions, Media Management Services, and Hand-Off Protocols

o     Reporting Systems that Monitor Delivery and Keep Track of Results

o     The Final Frontier—Creating a Workable Selling Interface

o     Real Time, or Near-Real-Time, Selling Is on the Event Horizon

o     MediaBank

o     A Comprehensive Media Buying Control Panel across All Infrastructures

•     Economics of Addressable Advertising—So Many Choices, So Little Time

o     Content-Based Addressable Advertising

o     Customer-Based Addressable Advertising

o     Geographic-Based Addressable Advertising

o     Hardware-Based Addressable Advertising

•     How Addressable Advertising Flows Out to End Users

o     US TV Programming Services

o     National Broadcast Networks

o     National Broadcast Networks Present Multiple Advertising Opportunities

o     Local TV

o     Subscription TV Networks (CNN, ESPN, Fox Networks, TBS, etc.)

o     Regional Networks

o     Local Productions by Cable TV, TelcoTV (IPTV), and Local Internet Service Providers

•     US Addressable TV Advertising Forecast

o     Where Addressable Advertising Can Get To by Category

o     Household Coverage of Various Content Delivery Infrastructures

o     The Race to Provide Video-on-Demand and High Definition VOD

o     Household Coverage of Various Programming Services

o     Forecast for US Addressable TV Advertising by Category

•     Methodology

•     Related In-Stat Reports

 

•     Table 1. Estimate for Annual Value of US Advertising Spend, by Category (US$ Billions)

•     Table 2. Percentage of Annual Value of US Advertising Spend, by Category (Percent of Total)

•     Table 3. Addressable Advertising Categories Delivered by Digital Infrastructures

•     Table 4. Household Penetration of Content Delivery Infrastructure by Category

•     Table 5. Household Coverage of Various TV Programming Services (Percentage Penetration of All US TV Households)

•     Table 6. Estimates for Annual Value of US Addressable TV Advertising Spend, By Category (Annual Value in US$ Billions, Annual Growth Rate, Percent of Total)

List of Figures

•     Figure 1. Percentage of Total US Addressable TV Advertising Value by Category

•     Figure 2. Percentage of Annual Value of US Advertising Spend, by Category (Percent of Total)

•     Figure 3. Percentage of Annual Value of Non-Print US Advertising Spend, by Category (Percent of Total)

•     Figure 4. Infrastructure That Delivers Content to Consumers

•     Figure 5. National Broadcast Networks Connect to Local Affiliates

•     Figure 6. Advertising Distributed From Multiple Data Centers

•     Figure 7. National Networks and Local TV Stations Also Connect to the Internet

•     Figure 8. Internet Services Provide Branded Web Sites for TV Content

•     Figure 9. Web Content is Repurposed for In-Band Cellphone Services

•     Figure 10. Local TV Stations Add Syndicated Programming Into the Mix

•     Figure 11. Local Stations Also Add Locally-Produced Content Into the Mix

•     Figure 12. Local Stations Share Locally-Produced Content With National Network

•     Figure 13. Local TV Stations Interface to Local Cable TV Systems

•     Figure 14. Local TV Stations Interface With Direct-to-Home Satellite Services

•     Figure 15. Local TV Stations Interconnect to TelcoTV Services

•     Figure 16. Subscription TV Services Similar to National Broadcast Networks

•     Figure 17. Subscription TV Services Provide Localized Versions for Cable TV Services

•     Figure 18. Local Cable or TelcoTV Services Will Provide Local Wireless Versions, as Well

•     Figure 19. Local Headends Deliver Subscription-TV Networks, Plus On Demand Content

•     Figure 20. Cable TV and TelcoTV Support Local Ad Insertion

•     Figure 21. Cable TV and TelcoTV Producing Their Own Local Content

•     Figure 22. Broadcast TV, and Other TV, Delivered via Internet Services

•     Figure 23. Household Penetration of Content Delivery Infrastructure by Category

•     Figure 24. US TV Households With 5Mb/s Broadband, VOD, or HD-VOD Capabilities

•     Figure 25. Household Coverage of Various TV Programming Services (Percentage Penetration of All US TV Households)

•     Figure 26. Estimates for Annual Value of US Addressable TV Advertising Spend, By Category (Annual Value in US$ Billions)

•     Figure 27. Trend Lines Showing Relative Growth of Each Category of Addressable Advertising