Advanced Ad: Ready To Grow Beyond 'Crawl' Phase

Tech exec says ad networks that boosted online video will take hold on TV, too

Advertising targeted to collections of individually addressed homes, rather than by timeslot or program, is in the "crawl" stage now but should grow following a pattern established by online video ads, a technology vendor in the field said.

Satellite TV providers DirecTV and Dish Network are doing some addressable campaigns on linear broadcasts, and Comcast is doing some ad insertions into on-demand video, BlackArrow president Nick Troiano said during an afternoon panel session at the Advanced Advertising event Tuesday. As those efforts increase, ad networks will emerge to package the inventory and accelerate the sales growth, which is how online digital ads took off, Troiano said.

There are disadvantages to that approach – losing control over valuable assets and selling them as a commodity – and even on the online end of the business the ad networks took 12 years to establish themselves, Troiano said. But he expects to see "significant uplift" on addressable-ad buys in 2014.

He also offered some context for the emergence of IP video streaming of TV shows over readily measurable devices like tablets. Citing Comcast executive Marcien Jenkes, he said 97% of television is viewed on a TV set, and 99% of TV is viewed in the home. And he said technology is far less of a concern than other aspects of the business model. Multichannel providers have to learn how to sell addressable ads, agencies have to understand the benefits and then must sell networks on those benefits.

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