In This Update

  • Addressable TV Advertising Slowly Arrives
  • Addressable Advertising Appears on the Near Horizon
    • Estimates for the Annual Value of US Advertising Spending by Category
    • Addressable Advertising Fills the Need for Personalization
    • Subscription TV Networks Provide the FIRST WAVE of Personalization
    • High Definition Programming Creates Momentum for Traditional TV
    • The Internet is the SECOND WAVE of Personalization
    • Local Ad Insertion is the THIRD WAVE of Personalization
  • Infrastructure for Addressable Advertising
    • Consumers Have Multiple Ways to Receive Content
    • Content Flows Through Multiple Gate Keepers on its Way to Consumers
  • Content, and Addressable Ads, Flow Through a Complex Infrastructure With Overlap, Duplication, and Exclusivity
    • High Definition, Standard Definition, Internet, and Mobile Versions of Content and Advertising Make Everything Much More Complicated
  • National Broadcast TV Networks (ABC, CBS, etc.)
    • National Networks Work Through Local Affiliates
    • Local Affiliate Agreements Are in a State of Flux
    • Nationwide Advertising Staging and Clearinghouse
    • DG FastChannel
    • Run Digital Media
    • National Networks and Local Affiliates Also Support Internet Services
    • Internet Content is Repurposed for In-Band Cellular Phone Applications
    • Local TV Stations May Also Air Syndicated Programming That Does Not Come From a National Broadcast Network
    • Local Affiliates May Share Local Content With the National Network
  • Local TV Stations Present Their Own Ecosystem
    • Retransmission Consent Opens New Doors for Local TV
    • Local TV Stations Interface to Local Cable TV Systems
    • Local TV Stations Also Interconnect to National Satellite TV Services
    • Local TV Stations Also Connecting to Local TelcoTV Services
  • Subscription TV Networks Similar to National Broadcast Networks
  • Local Cable TV and TelcoTV Services Provide a More Extensive Ecosystem That Distributes TV Networks and Adds VOD
    • Cable TV and TelcoTV Can Insert Advertising in Their Local Headends
    • Local Cable TV and TelcoTV Services Also Producing Their Own Content
  • Internet Services Also Delivering Broadcast, and Other, TV Programming Supported by Addressable Advertising
    • Transcoding of Content and Ads for Delivery Platforms Creates a Problem
    • Metadata Definitions, Media Management Services, and Hand-Off Protocols
    • Reporting Systems that Monitor Delivery and Keep Track of Results
    • The Final Frontier—Creating a Workable Selling Interface
    • Real Time, or Near-Real-Time, Selling Is on the Event Horizon
    • MediaBank
    • A Comprehensive Media Buying Control Panel across All Infrastructures
  • Economics of Addressable Advertising—So Many Choices, So Little Time
    • Content-Based Addressable Advertising
    • Customer-Based Addressable Advertising
    • Geographic-Based Addressable Advertising
    • Hardware-Based Addressable Advertising
  • How Addressable Advertising Flows Out to End Users
    • US TV Programming Services
    • National Broadcast Networks
    • National Broadcast Networks Present Multiple Advertising Opportunities
    • Local TV
    • Subscription TV Networks (CNN, ESPN, Fox Networks, TBS, etc.)
    • Regional Networks
    • Local Productions by Cable TV, TelcoTV (IPTV), and Local Internet Service Providers
  • US Addressable TV Advertising Forecast
    • Where Addressable Advertising Can Get To by Category
    • Household Coverage of Various Content Delivery Infrastructures
    • The Race to Provide Video-on-Demand and High Definition VOD
    • Household Coverage of Various Programming Services
    • Forecast for US Addressable TV Advertising by Category
  • Methodology
  • Related In-Stat Reports

List of Tables

  • Table 1. Estimate for Annual Value of US Advertising Spend, by Category (US$ Billions)
  • Table 2. Percentage of Annual Value of US Advertising Spend, by Category (Percent of Total)
  • Table 3. Addressable Advertising Categories Delivered by Digital Infrastructures
  • Table 4. Household Penetration of Content Delivery Infrastructure by Category
  • Table 5. Household Coverage of Various TV Programming Services (Percentage Penetration of All US TV Households)
  • Table 6. Estimates for Annual Value of US Addressable TV Advertising Spend, By Category (Annual Value in US$ Billions, Annual Growth Rate, Percent of Total)

List of Figures

  • Figure 1. Percentage of Total US Addressable TV Advertising Value by Category
  • Figure 2. Percentage of Annual Value of US Advertising Spend, by Category (Percent of Total)
  • Figure 3. Percentage of Annual Value of Non-Print US Advertising Spend, by Category (Percent of Total)
  • Figure 4. Infrastructure That Delivers Content to Consumers
  • Figure 5. National Broadcast Networks Connect to Local Affiliates
  • Figure 6. Advertising Distributed From Multiple Data Centers
  • Figure 7. National Networks and Local TV Stations Also Connect to the Internet
  • Figure 8. Internet Services Provide Branded Web Sites for TV Content
  • Figure 9. Web Content is Repurposed for In-Band Cellphone Services
  • Figure 10. Local TV Stations Add Syndicated Programming Into the Mix
  • Figure 11. Local Stations Also Add Locally-Produced Content Into the Mix
  • Figure 12. Local Stations Share Locally-Produced Content With National Network
  • Figure 13. Local TV Stations Interface to Local Cable TV Systems
  • Figure 14. Local TV Stations Interface With Direct-to-Home Satellite Services
  • Figure 15. Local TV Stations Interconnect to TelcoTV Services
  • Figure 16. Subscription TV Services Similar to National Broadcast Networks
  • Figure 17. Subscription TV Services Provide Localized Versions for Cable TV Services
  • Figure 18. Local Cable or TelcoTV Services Will Provide Local Wireless Versions, as Well
  • Figure 19. Local Headends Deliver Subscription-TV Networks, Plus On Demand Content
  • Figure 20. Cable TV and TelcoTV Support Local Ad Insertion
  • Figure 21. Cable TV and TelcoTV Producing Their Own Local Content
  • Figure 22. Broadcast TV, and Other TV, Delivered via Internet Services
  • Figure 23. Household Penetration of Content Delivery Infrastructure by Category
  • Figure 24. US TV Households With 5Mb/s Broadband, VOD, or HD-VOD Capabilities
  • Figure 25. Household Coverage of Various TV Programming Services (Percentage Penetration of All US TV Households)
  • Figure 26. Estimates for Annual Value of US Addressable TV Advertising Spend, By Category (Annual Value in US$ Billions)
  • Figure 27. Trend Lines Showing Relative Growth of Each Category of Addressable Advertising