Light Reading

Bright House Launches VOD Ad Insertion

Alan Breznick
7/29/2014
50%
50%

Plunging into a potentially lucrative market for cable operators, Bright House Networks has become the latest major North American MSO to start inserting ads dynamically into video-on-demand (VoD) programming.

Bright House Networks , the sixth biggest US MSO with more than 2 million video subscribers, has started rolling out dynamic ad insertion (DAI) on VoD in its Indianapolis market. Although Bright House hasn't said where it might go next, it is expected to expand the DAI deployment nationally. Besides Indianapolis, the MSO's other big markets include Orlando and Tampa, Fla., Birmingham, Ala., and Detroit.

Like three of its large counterparts, Bright House is relying on [complink 10912|BlackArrow Inc.}'s ad insertion solution to manage the VOD DAI deployment. BlackArrow, which has carved out a nice niche for itself in this category, offers a centralized, real-time ad solution designed to unify campaign management, advertising reports, and ad executive across all TV platforms.

BlackArrow is also working with the other three major MSOs -- Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), and Rogers Communications Inc. (Toronto: RCI). Comcast, TW Cable, and Bright House are also all members of Canoe Ventures LLC , the four-MSO consortium driving VOD advertising in the US. The other large MSO participating in Canoe is Cox Communications Inc. , which has not yet rolled out DAI but is expected to do so later this year.

"We started out with VOD as low-hanging fruit for the large operators," Chris Hock, SVP of marketing and partnerships for BlackArrow, told Light Reading. "This is a sign that the market is moving away from early adopters." With the addition of Bright House, BlackArrow will extend its VOD ad deployment base to nearly 32 million cable homes.

The move by Bright House comes as the VOD ad business finally appears to be taking off after years of stumbling. In May, for example, the participating cable operators and 40 programming networks teamed up to conduct an average of 230 VOD DAI campaigns per week, according to the latest statistics from Canoe. Further, Canoe notes, more than 3 billion ads have been inserted in free cable VOD programming through May, already more than the 2 billion ads inserted through all of 2013.


For more of Light Reading's coverage of the emerging VOD ad business, visit our video services content channel.


With a fourth major North American MSO now under its belt, BlackArrow is seeking to extend its VOD ad reach across the Atlantic to Western Europe. Hock said the firm is also eyeing other pay-TV providers, such as telco video operators.

In addition, BlackArrow is looking to sign up more cable operators and other pay-TV providers for its ad solution for live, linear TV programming delivered over IP. So far, one major MSO, TW Cable, has started making use of that product, known as BlackArrow Linear. (See BlackArrow Targets Live TV Ads.)

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
8/4/2014 | 3:26:30 AM
Re: Show me the money
Yes, we ignor most of it, but I think much of it is just passive, as long as its there in front of someone its having some impact. 
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
7/31/2014 | 11:30:12 PM
Re: Show me the money
Ahh -- but if the user is going to ignore the ads, then the person paying for the advertising is just wasting the money.  It used to be the saying that "I know half my advertising is wasted, but I don't know which half" -- since we're advertising more than ever, I think the wasted number is much higher since the audience is being trained to ignore the ads.

It depends on what's being advertised of course, but in my experience I see a lot of marketers just using the "Alcohol and guessing" approach, and it doesn't really pay off.  I've done work crunching the numbers for a few businesses.  Unless the advertising techniques advance all the new tech available to it won't help.
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
7/31/2014 | 2:56:12 PM
Re: Show me the money
That might be the best time for the user, but most likely not the best time for the person paying for the advertising. 
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
7/31/2014 | 1:30:06 PM
Re: Show me the money
Those ads are terrible because they're stuck in the same tired "interruptive" method that advertising's been using for ages.  All it does is train people to ignore it, and if they get clicked it's by accident.  

Timing and context is everything.  The best time to insert an ad is when the person hits PAUSE.  At that point, the viewer is saying "I need to stop and do something" and in which case they're already interrupting their own viewing.  Then when they come back, the ad is the first thing they see and since they weren't watching at the time it's not like the ad did the interrupting.
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
7/30/2014 | 3:15:38 PM
Re: Show me the money
Personally I think ad insertion would be great if it worked the say YouTube does the overlay ads. That would probably be the best model for cable to go with. 
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
7/30/2014 | 2:37:23 PM
Re: Show me the money
I don't see much change happening personally; it's the same thing that always happen.  New advertising technology used the with the same old, tired, uninteresting and poorly targeted interruptive ads.

 
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
7/29/2014 | 1:39:58 PM
Show me the money
No doubt this is revenue that cable companies want, and I am sure they will find even more ways to insert ads, some we may not even relize we are being shown. For me the key to VOD ad insertion has aways been to make it seemless, I think the MSOs are trying to make that the case. 
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?