Advanced TV Seen as a Slow Market Disruptor

In one of yesterday’s posts, I described how major advertiser are relying more on TV to reach their audiences. Many marketers believe that new technology advances for the TV platform will improve the effectiveness of their messaging and that a significant disruption is right around the corner. These technologies, such as over-​the-​top  (OTT) viewing, was the subject of a new Deloitte study which hints that the TV revolution may take a while to arrive.

Deloitte analysts studied the trend of non-​linear TV viewing to determine whether advanced advertising techniques will lead to the death of the 30-​second TV spot in the immediate future. Advanced advertising is defined as ‘targeted, addressable and interactive’ methods used via TV. The analysts say that OTT viewing currently comprises 3% of the TV ad market and this is mostly online video. While consumers may be interested in TV everywhere, the various vendors involved in the TV transformation are still struggling to deliver content reliably through IP.

While advanced advertising in TV is expanding, it has not yet reached the $500 million mark. This development appears to be on the 5–10 year horizon. The Deloitte suggests that technology vendors still have to convince media companies and marketers that they can make money incorporating these changes. And consumers have to be convinced to exchange their personal to receive the benefits of advanced TV. As a result, marketers may increase their investment in the mobile or tablet platforms more quickly than in advanced TV.

[Source: Future of TV Advertising. Slow start of advanced technologies. Deloitte​.com. 2011. Web. 6 Mar. 2012] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.