Recent advances in digital advertising insertion technology and the corresponding adoption of the gear by cable operators is leading the industry into the unexplored territory of digital-to-digital, addressable and interactive advertising models--which some believe could spark a revolution of sorts in the massive video advertising market.
Until 1993, analog-to-analog commercial ad insertions were the norm. That all changed when a handful of cable systems and equipment vendors began tinkering with digital ad insertion gear. What followed was a momentous shift by the cable industry toward digital networks, and the birthing of the digital ad insertion process.
And why not? With the local spot ad market climbing above $5 billion, the national cable ad market above $10 billion, and with cable getting just 15 percent of the $60 billion TV ad market (according to Universal McCann Futures), inserting commercials over expanding digital networks was bound to attract attention.
Embedded triggering systems (a specification known as DVS 253) are now being deployed that allow systems to automatically respond to ad insertion opportunities and maximize high value inventory. Tighter targeted ads, higher reliability, greater use of bandwidth and better cost efficiencies are additional upsides to digital ad insertion technology and the DVS 253 specs. In addition, experts maintain, advanced digital-to-digital technology will allow streaming and grooming into MPEG bit streams (DPI), now considered the next generation of ad insertion technology.
"In the early 1990s, cable ad sales were all analog-to-analog and used tape machines to insert local ad spots. That was the beginning of a business for cable because it was with local advertisers. That's when the business became real," said John Boland, VP and GM …
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