Video ad growth offers opportunities for networks, service providers

January 2, 2014 - 5:15pm
Opportunities for personalized, targeted video advertising will rise over the next few years.

Video advertising will continue to be a dominant form of content promotion in 2014, supported by opportunities provided by multichannel distribution. As the new year dawns, it's a good time for network operators and service providers to invest in infrastructure solutions that can facilitate advanced advertising techniques such as real-time digital ad insertion. Video ads are expected to increase substantially in the next few years as integration techniques and cross-platform opportunities improve. Overall, 2014 should see the continued evolution of a more nuanced, personalized form of digital advertising that continues to provide opportunities for network and service providers to produce revenue.

Banking advisory firm Evercore Partners forecasted that the U.S. online video advertising market will rise to $8.1 billion by 2016, representing a compound annual growth rate of 37 percent between 2014 and 2016, according to Street Insider. Digital advertising on both on-demand and traditional video transport options will be driven by the increased use of data for an "unprecedented" level of targeting and personalization, Evercore analyst Ken Sena told the source. 

"Video content is becoming more about immediacy and on-demand, the seconds-long clip formats of Vine and Instagram have unleashed a new wave of [user generated content], and YouTube steamrolls on for most everything video (with notable professional exceptions)," stated Sena.

The technology behind the video transport
Devices such as live streaming transcoders will be essential to creating sufficient video transport architecture for content delivery on this level. Network operators will need to splice commercials into live television as well as on-demand content sent to any device, wrote Light Reading contributor Alan Breznick. These next-gen devices come with software that enables adaptive bitrate video streaming, which is integral for the type of granular, multiscreen video delivery that can drive the incentivization of video advertising content. Sencore's live streaming transcoder offers ABR support for Adobe HDS, Apple HLS, MPEG-DASH, RTMP and other protocols. It also offers robust workflow integration and allows for organizations to reduce their hardware footprint while optimizing their current technologies for the advertising revenue opportunities ahead.

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.

Video Transcoding