DirecTV Looks at Local Ads
The WSJ is reporting that DirecTV will have the capability to target ads by location by 2011. Once the domain of only cable companies, and more recently telco TV providers, local ad insertion is a desirable revenue source for any multichannel video operator. While the total market for local ad revenue (all forms) is declining, it’s still north of $90 billion year. Satellite providers have been unable to participate in the practice due to technology constraints. Apparently, that’s about to change.
Invidi Technologies Corp. is developing the technology that gives DirecTV (and Dish Network LLC (Nasdaq: DISH), I assume) this new capability. Telco TV operators have been trying to get a slice of the local ad insertion pie for some years now. It looks as if DirecTV will be joining the hunt soon.
— Bernardin Arnason, Managing Partner, Pivot Group , and Chairman, TelcoTV 2009
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