Explosion of VoD Services & a Parallel Focus on Advanced Solutions for Delivering On-Demand Advertising Drives Global Opportunities for Ad Insertion Servers

The global Ad Insertion Servers market is projected to reach US$2.3 billion by 2022, driven by the explosive rise of Video on Demand (VoD) services and increased activity among broadcasters, service providers and marketers to leverage and unlock the value of VoD advertising.

The video entertainment industry worldwide is being transformed by the explosive growth in demand for anytime, anywhere access to high-quality video content over multiple devices. The industry is also being revolutionized by the increased demand for personalized and interactive video services such as video on demand (VOD) and the increasing access to high-quality content over diverse media platforms such as cable, IPTV, satellite and mobile networks. The enormous potential of video content services is driving content providers, service providers and broadcasters to monetize the opportunities presented by the rapid growth of video viewer base. In order to target viewers with personalized ads, broadcasters and service providers are increasingly equipping advanced ad insertion servers in their facilities. Ad insertion servers are used for inserting an advertising message into a media stream.

Globally, adoption of video and ad insertion servers continues to rise, driven by the migration of broadcasters and operators from analog content towards digital networks. The transition not only enables viewers to access high quality video content through different platforms such as cable, Internet protocol television (IPTV), satellite, and web-and mobile-based networks, but also allows them to receive and interact with adverts targeted specifically at them. This shift is fostered by the intensifying consumer demand for digital content, rapid growth of video on demand (VoD) services and HD programming content amidst the rising sales of HD TVs. The increased availability of digital channels and high-definition content and rising popularity of personalized and interactive services over multiple platforms are throwing the spotlight on addressable and interactive advertising, thus necessitating the use of ad insertion servers.

Proliferation of content services will continue to drive service providers and broadcasters to incorporate modern ad insertion technology into their facilities for enhancing revenue streams. Demand for ad insertion servers will also be fuelled by the adoption of highly advanced ad campaigns and the ongoing efforts of telecom and cable companies to upgrade their servers, in order to distribute content over different medium and devices including mobile devices. Ad insertion server market is in particular witnessing a trend towards dynamic ad insertion, which is aimed at enhancing the monetization of investments in on-demand and interactive video services. Ad insertion revenues are expected to increase further led by the anticipated increase in viewership for some of the upcoming global sporting events, which presents enormous opportunities for content providers, broadcasters and marketers to target audiences through targeted advertising.

The United States represents the largest market, worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 9.6% over the analysis period, led by favorable economic climate; growing phenomenon of digitization megatrend especially in the entertainment space; expanding base of affluent middle class population with robust appetite for digital forms of entertainment such as podcasting, online video and interactive TV etc., and increasing availability of digital channels and high-definition content.

Major players in the market include Adobe Systems Incorporated, Anevia S.A.S, ARRIS International plc, Brightcove Inc., Cisco Systems Inc., DJC Media Group, Edgeware AB, Harmonic Inc., Imagine Communications Corporation, Nokia Corporation, SeaChange International Inc., and Telefonaktiebolaget L. M. Ericsson, among others.

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