Fast-forward the calendar three years from now and you’ll see cable/telco companies firmly entrenched in a data-rich video advertising marketplace where the inventory pool has widened dramatically thanks to new on-demand ad availabilities in prime time TV shows ordered up nightly by viewers.
The question is: In this new world, what do local cable advertising organizations do with the new inventory at their command?
The answer: Umm, stay tuned. Actually, nobody for the moment seems exactly sure how they’ll exploit the new advertising features of a video on demand world where it becomes relatively easy to dynamically insert commercials into available pre-, mid- and post-roll positions within VOD programs. What they do know is that it will almost certainly involve a mix of current local advertisers and new-to-the-market clients.
That much was apparent at a Cable Show 2013 panel session where cable industry ad executives talked about the role of dynamic VOD advertising.
Cox Media SVP Billy Farina was among the panelists talking about how his company will integrate DAI inventory into its selling environment. Although Farina’s optimistic about the overall possibilities of local dynamic ad insertion (or DAI) into VOD streams, he says there are no rigid rules being formulated for how Cox Media blends the new medium into its existing ad sales portfolio, which is heavy on traditional linear TV advertising but also includes web and mobile media products. And he’s also sensitive about how a new inventory pool might upset the supply-and-demand balance.
Already, Farina pointed out, Cox Media has a certain amount of live inventory that’s sold at a deep discount, sometimes by third-party agents such as AT&T AdWorks, which represents Cox Media and other television advertising providers to outside-the-market clients. “And now we’re going to increase…