MUMBAI: As digital TV providers capitalise on demand for Video-on-Demand (VOD) and Digital Video recorders (DVRs), advanced TV ad revenues in the US is likely to touch $4 billion in 2014.

The pay-TV industry will start witnessing success in advanced TV advertising from mid-2010, with US revenues touching $130 million by year-end, according to the new Parks Associates report ‘Addressable, Interactive TV Advertising in the US‘.

Consumer demand for time-shifted TV viewing on VOD and DVR service platforms, combined with the broad deployment of Canoe Ventures’ national addressable TV advertising platform, will drive the growth in advanced TV advertising.

By 2014, addressable, interactive TV advertising revenue in the US will exceed $4 billion thus accounting for nearly 12 per cent of total cable, DBS, and TV ad revenue.

Advanced TV advertising includes traditional linear 30-second ads and non-linear ads that include VOD and DVR advertising and interactive formats, such as overlay, tags, IPG banners, microsites, RFI, showcases and telescoping.

Says Parks Associates research analyst Heather Way, “Major US cable television operators, direct broadcast satellite (DBS) TV providers and telcos have identified advanced advertising as a key revenue opportunity moving forward.

“In the short term, digital TV operators continue to ramp up their investment in advanced advertising solutions as a preemptive move to sustain ad revenues. In the long term, the investment serves to grow the advertising business segment.”