Local advertising opportunities grow for TV providers

November 27, 2013 - 3:48pm
Targeted ad insertion offers lucrative opportunities for both advertisers and network operators.

As the holiday shopping season kicks into overdrive, advertisers are also ramping up their promotional strategies across different mediums. It's prime time for local advertisers, and they can get the most out of their campaigns if they are able to target the right customers. Opportunities abound in advanced advertising environments, in which network providers have invested in video broadcast system technologies to support local ad insertion. Every advertising dollar is crucial, and network operators that can facilitate this granular, customizable approach to advertising are likely to bolster their relationship with advertisers.

A recent survey by BIA Kelsey projected that local media ad revenues will continue to grow, rising from $132.9 billion in 2013 to $151.5 billion in 2017, which represents a compound annual growth rate of 2.8 percent, TV Technology reported. Of that total, local TV stations are forecast to account for $22.1 billion, or 14.6 percent, of overall 2017 revenues. Location-targeted advertising, on television as well as on mobile devices and through print ads, will be one of the top drivers of this growth. As the digital marketplace and innovations such as big data and analytics make collecting, processing and implementing consumer data into marketing campaigns possible and profitable, localization and personalization stand to pay higher dividends. 

Capitalizing on local ad insertion opportunities
The process of gathering data, selecting targeted ads and actually implementing them in video transport streams sent to customers requires a comprehensive, well-oiled and near-real time system, from information collection all the way to video delivery. Advertising Age contributor Kate Kaye recently took an inside look at some of the tactics that television advertising data analysts utilize in their strategic development. Companies seeing success in this arena are utilizing set top box-based data collection to find programming that might be commonly viewed by an unexpected audience - handymen watching women's college volleyball was Kaye's example - and flesh out viewer profiles to identify the "sweet spot" of the kinds of content and products that would most appeal to their multi-faceted personality and interests.

In order to facilitate the implementation of targeted digital ads, network operators should invest in next-gen technologies such as live streaming transcoders, which are more adaptive and flexible than their transcoding predecessors. They provide support for the seamless integration of any video stream standard delivered to any device, ensuring that ads arrive to the right customer in they way they were intended to appear.

Sencore provides reliable, cost-effective solutions for signal transmission and content delivery. Our Live Streaming Transcoder optimizes digital ad insertion through the power of parallel processing architectures. It's an essential tool in live over-the-top and IP delivery systems and is a top solution for large-scale transcoding applications. Contact us today to learn more.

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