HD Advertising Picking Up Steam Amid Lower Costs, Complexity
Consumers throughout the world are adopting High Definition in their homes at a record pace. The latest consensus estimates say one-third of all worldwide homes will select a full HD television in 2011.
A recent research report by Extreme Reach, says advertisers are taking heed and increasingly shifting their promotional content to HD. Advertisers haven’t just been simply waiting for consumer adoption to produce and deliver HD ads. Previously distribution, formatting and acceptance have slowed adoption in the advertising world.
The report for the second quarter 2011 reports states a 50 percent increase in the number of HD ads placed in the first half of the year. Despite that significant growth in HD advertisements, still only 20 percent of all television ads are now in HD. In that same time, the move to HD ads in local television is starting to gain traction. 94 percent of local stations had received an HD ad, delivered digitally, in the same period.
There are three reasons, the report asserts, why the increase in HD ads was so dramatic the first half of 2011: lower HD distribution costs, more local media now accepting HD ads, and a more straight-forward approach to producing HD ads by brand advertisers.
Lower Distribution Costs a Key
Ever since the push to HD began officially in 2006, the biggest hurdle for national and local advertisers was the high costs of distribution. Brand advertisers simply could not justify the extra cost to distribute HD versions of their spots, and consumer adoption was not as high.
According to the report, “The introduction of lower cost cloud-based digital distribution capabilities has broken a long-standing price barrier,” Extreme Reach stated. “This more evolved approach has driven distribution costs down by an average of 30% for a large segment of the market. The cloud-based model has a significantly lower cost structure than the older satellite distribution model.”Continued on the next page