HD advertisers now outnumber SD advertisers on network TV
NEEDHAM, Mass. – Extreme Reach, Inc., the leading platform for video ad distribution and ad serving solutions, released its Q2 2012 HD Advertising Trends Report today showing a 150 percent increase in HD ad distribution since Q2 2010. This growth represents a significant shift towards high definition TV advertising with SD advertisers on network broadcasts outnumbered for the first time by HD advertisers. The report analyzes trends across TV media types in the past two years with a focus on five verticals: Financial Services, Automotive, Entertainment, Retail and Political. Providing the most up-to-date and relevant HD information for the advertising industry, this report, now in its’ eighth quarterly edition, examines:
- Changes in HD advertising trends over the past two years.
- HD advertising trends related to sporting arenas that underscore the opportunity around preseason football and summer sports.
- Opportunities for advertisers nationally and locally.
Two years ago, HD ads made up about 10 percent of all TV ads distributed by advertisers to broadcast and cable media outlets. Today, that number has grown an impressive 150 percent. In Q2 of this year, 25 percent of ads delivered to TV media outlets were in high definition. An additional trend outlined in the report is the movement of TV advertisers to advanced Cloud-based solutions for ad distribution. This shift has enabled TV advertisers who use the Cloud for ad distribution to deliver an average of 98.5 percent of their SD and HD ads digitally.
“HD TV advertising has seen tremendous growth since 2010, and I think the rise of cloud computing has really helped move the industry forward into high definition,” said Dan Brackett, Chief Technology Officer of Extreme Reach. “By taking advantage of advanced Cloud-based solutions, advertisers have been able to leverage higher performance/lower cost workflows, and those efficiencies have helped fuel the rapid growth in HD advertising.”
New to this edition of the HD Trends Report is a feature related to sports venues—where televisions of every size are prominently featured around the game in lounges, concession areas, jumbotrons and seemingly every place in between. Extreme Reach data has found widespread acceptance of high-definition advertising around sports venues. Compared to local TV broadcasters, sports venues have higher HD adoption and distribution rates, presenting an HD-ready audience and a clear opportunity for advertisers, no matter the size of the game.
About the HD Advertising Trends Report and the HD Advertising Indices
The HD Advertising Trends Report is a quarterly report produced by the Extreme Reach Research Group, aimed at providing advertisers and media companies with the most up-to-date and relevant HD advertising insights.
The HD Distribution Index and the HD Media Index provide the industry’s quarterly metrics for HD ad distribution by advertisers and HD adoption by TV media outlets. Visit the HD Trends page on the Extreme Reach website for the Q2 report and past editions: extremereach.com/hd-trends.
Methodology
The HD Advertising Trends Report analyzes detailed trends and insights related to HD TV advertising. For this study, the Extreme Reach Research Group analyzed and referenced data from a sample of 1,900 active television advertisers across 28 verticals, 615 active video production studios and content providers, and nearly every commercial television and cable broadcast outlet in the United States and Canada, including all major broadcast networks.
The analysis in the 2012 Q2 edition of the HD Trends Report draws from a sample of 270,000 SD and HD commercial deliveries completed over the three-month period between April 1 and June 30, 2012.
About Extreme Reach
Extreme Reach is the leading provider of video advertising distribution, ad serving and talent & rights management solutions that span all video media. The company’s network seamlessly connects over 2,500 advertisers and agencies with more than 1,000 commercial production houses and 18,000 media destinations across the U.S. and Canada, including every major broadcast network and all of the top websites. The Extreme Reach video platform simplifies the execution of ad campaigns across video media and is the industry’s only platform that integrates both TV and online video advertising. The company is headquartered in Needham, Mass., with offices in New York, Chicago, Burbank, Detroit, Dallas, Seattle and Louisville.
For more information and a copy of the report, visit the Extreme Reach website: extremereach.com.
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