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. 
From The Founder
Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
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 Level 3's Jack Waters

2|8|16   |   26:15   |   (1) comment


Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
LRTV Custom TV
The Composable Telco

2|8|16   |   24:46   |   (0) comments


Heavy Reading's Principal Analyst Caroline Chappell presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
LRTV Custom TV
Join Us at the Digital Operations Transformation Summit

2|4|16   |   03:52   |   (0) comments


The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
LRTV Custom TV
Making the Test: ADVA Ensemble Connector vs. Open vSwitch

2|4|16   |   01:28   |   (0) comments


Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
LRTV Custom TV
Bridging the Gap Between PoCs & Deployment in NFV

2|4|16   |   31:50   |   (0) comments


Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
Between the CEOs
CEO Chat With Mike Aquino

2|3|16   |   17:34   |   (0) comments


The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Shades of Ray
MWC: Buckle Up for 5G & the IIoT

2|2|16   |   02:28   |   (0) comments


This year's Mobile World Congress looks set to be a 5G land grab and a chance to get down and dirty with the Industrial Internet of Things (IIoT) – but what will the 5G discussions actually be about?
LRTV Custom TV
Case Study: Building China's Next-Gen TV Networks

2|2|16   |   5:01   |   (0) comments


With over 2 billion viewers worldwide, Shenzhen Media Group is one of China's largest content producers. By partnering with Huawei and Sobey, SZMG was able to modernize media operations with the Converged News Center, a production studio that is a model for next-generation workflows.
LRTV Custom TV
Quad Channel Modulator Driver with 46 Gbaud Capability from MACOM

1|28|16   |     |   (0) comments


MACOM's MAOM-003427 is the industry's first surface-mount modulator driver with 46 Gbaud capability to support next generation 200G and 400G applications.
LRTV Custom TV
Video Infographic: Validating Cisco's NFV Infrastructure

1|26|16   |   02:24   |   (1) comment


We all know that the network of the future will be virtual, but when will virtual become a reality? This video infographic covers the four key areas in which Light Reading, in partnership with EANTC, tested Cisco's NFV infrastructure: performance, reliability, multi-service capabilities and single pane of glass management.

For the full report, see

Between the CEOs
CEO Chat With Phil McKinney, CableLabs

1|22|16   |   13:36   |   (1) comment


At CES in Las Vegas, we met with Phil McKinney, CEO of CableLabs. Phil provides an update on the rollout of DOCSIS 3.1, his views on the future of open source and how consumer interest in virtual reality could affect network traffic.
Between the CEOs
Ericsson CTO on the Changing Telecom Market

1|21|16   |   10:26   |   (0) comments


At CES 2015, CTO of Ericsson, Ulf Ewaldsson, sits down with CEO of Light Reading, Steve Saunders, to discuss the changing telecom market, the new partnership with Cisco and the future of the telecom industry.
Upcoming Live Events
March 10, 2016, The Cable Center, Denver, CO
April 5, 2016, The Ritz Carlton, Charlotte, NC
May 23, 2016, Austin, TX
May 24-25, 2016, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Google's 5G Radio Ambitions Are Expanding
Dan Jones, Mobile Editor, 2/5/2016
Cincinnati Bell Joins Weight Watchers Club
Alan Breznick, Cable/Video Practice Leader, 2/5/2016
Vodafone: Flexible Work Policies Boost Profits
Sarah Thomas, Editorial Operations Director, 2/8/2016
It's Time to Integrate OTT Video
Alan Breznick, Cable/Video Practice Leader, 2/8/2016
Yahoo & Verizon Sitting in a Tree...
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 2/8/2016
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Animals with Phones
Retro Is the Way to Be Click Here
Some animals are too cute for smartphones.
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.