SOURCE: Extreme Reach

Extreme Reach

January 19, 2011 14:26 ET

Advertising Report Shows Overall HD Adoption Remained Steady in Q4, but HD Adoption Surged Among Retail and Automotive Marketers

HD Usage Patterns Emerged in Key Verticals, More Than One Third of Local Broadcasters Now Accept HD Ads

NEEDHAM, MA--(Marketwire - January 19, 2011) - In its ongoing efforts to provide marketers and media companies with up-to-date video advertising insights, Extreme Reach today released its Q4 HD Advertising Trends Report. The quarterly report reveals a marked increase in HD advertising adoption rates in retail and automotive verticals, but a flat adoption rate across the advertising industry as a whole. For the report, Extreme Reach analyzed HD adoption and distribution data from more than 7,500 TV client brands, production companies and broadcast destinations in the company's television ad delivery network. A free copy of the report can be downloaded at extremereach.com.

Additional insights from the report include:

  • Advertiser HD Trends: Average industry adoption remained relatively flat at 13% in Q4

  • Vertical Spotlight: HD adoption by retail and automotive marketers surged (17% and 49% respectively) over Q3 adoption rates; revealing a unique pattern of HD usage by advertisers with branding and promotional campaigns that are both national and local

  • Viewer Experience: Most HD advertisers have yet to enhance their commercials with surround sound, and advertisers prefer their HD ads to be Center Cut formatted when aired in SD

  • Broadcast/Cable HD Trends: For the first time, more than 1/3 of local broadcasters have adopted HD, while it was the networks that experienced an increase in HD ad deliveries

  • Conclusions: The research highlights patterns that reveal potential opportunities and advantages for HD advertisers and broadcasters

"We believe that national advertisers running local promotional campaigns will find this version of the HD Trends Report to be quite insightful. The advertising industry as a whole didn't make a significant push towards HD adoption last quarter, but adoption in the retail and automotive markets surged," said John Roland, CEO of Extreme Reach. "Additionally, the report confirms that the HD viewer experience can be inconsistent when it comes to commercial breaks, and shows how and why advertisers and broadcasters are affecting the degree of that inconsistency."

HD Adoption in Key Advertising Verticals Jumps, but Reliance on SD Continues
According to the report, the overall percentage of retail marketers using HD advertising in Q4 jumped more than 17% (compared to Q3), but retailers increasingly relied on SD commercials to convey promotional messages as the fourth quarter progressed. A similar pattern emerged in the automotive vertical as well. The data indicates that marketers in these verticals appeared to take a conditional approach to HD advertising, relying primarily on HD for national, long-running and branding campaigns and SD for local, short-term and promotional campaigns.

There were discrepancies between the two verticals, however, especially when it came to audio. According to the report, one-third of HD automotive spots are produced to provide a surround experience consistent with broadcast content to improve viewer experience, while surround sound adoption by retail advertisers is 20% lower than average industry adoption rates. In terms of HD formatting in general, when HD advertisers select a preference between two presentation formats for SD TV audiences, the decision is usually brand-specific, not consistent across verticals.

Report Methodology
Extreme Reach operates the largest electronic distribution network for both SD and HD television advertising. For this report, Extreme Reach analyzed data from more than 1300 television advertisers across 15 verticals, 287 video production studios and content providers, and nearly every commercial television and cable broadcast outlet in the United States and Canada, pulling from the Company's leading TV ad delivery network. The analysis draws from a sample of 142,000 SD and HD commercial deliveries completed over the three-month period between October 1 and December 31, 2010. Areas of analysis include HD adoption, distribution and viewer experience.

For more information about Extreme Reach or to download a free copy of the HD Advertising Trends Report, visit: extremereach.com

About Extreme Reach
Extreme Reach is a leading provider of video advertising management and distribution solutions. The company's unique pure-digital ad delivery network connects hundreds of advertisers, agencies and post-production houses, with thousands of media destinations. The Extreme Reach video platform simplifies the management, delivery and tracking of ad campaigns across video media, including: TV, web, cinema, outdoor and mobile. The company's headquarters are located in Needham, MA, with offices in New York, Chicago, Los Angeles, Seattle and Louisville, KY. For more information, visit the Extreme Reach website: extremereach.com.

Contact Information

  • Contact information:
    Rebecca Passo
    SHIFT Communications
    (617) 779-1817
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