Consumer viewing habits have changed dramatically over the years as more and more viewers have begun to embrace the time-shifted viewing experience. Live television consumption of high-profile primetime programming is declining in part due to time-shifted viewing. Video on Demand (VOD), along with DVR recording and online streaming services are growing components of the time-shifting experience. VOD allows consumers to view shows or movies through a single platform from cable or satellite providers at their leisure, without the need for any additional hardware other than their set-top box. As the quality and quantity of content accessible to viewers expands, consumers have begun to embrace the VOD platform as another option for content consumption.
Video on Demand has also become a popular platform not only for consumers but also among television networks, advertisers and cable service providers for its ability to be measured and therefore monetized. It has created the atmosphere for new advertising opportunities in the non-traditional television world. An example is Dynamic Ad Insertion (DAI). DAI expands advanced advertising opportunities by allowing cable providers to target ads that can be swapped in and out of VOD content. Ads can be 15, 30 or 60 seconds in length. The 30 second ads are the most popular in the VOD platform. Ads can be inserted into VOD content through pre-roll, mid-roll and post-roll formats.
Dynamic Ad Insertion has created opportunities for all parties involved to gain more value out of this form of advertising. Technology providers like Canoe Ventures, who power VOD ad insertion for major broadcast and cable networks, have now expanded their VOD DAI platform across 130 DMAs and have already begun to see an increase in the amount of ad insertions. In the 2014 year-end report issued by Canoe Ventures, viewed ad impressions increased by 215% from the first to the fourth quarter of 2014. One of the major advantages for VOD advertising is that most ads are non-skippable by the viewer; however, that function is determined by individual network programming providers. Harmelin Media VP of Research & Consumer Insight Bernie Shimkus recently noted, “After a few technological missteps early in the process, DAI/VOD is coming into its own and is now offering advertisers and agencies another viable option to reach target consumers using video ads placed within a high-profile, premium programming environment.” The continued incorporation of DAI should allow advertisers more opportunities to re-capture lost ‘live’ TV viewing and increase the reach of key demographics as time-shifted viewing through VOD continues to grow.