Advertising Distribution System Market Trends, Business Strategies and Opportunities with Key Players Analysis
Major players operating in the global advertising distribution system market include Kollective Technology Inc., Aviwest SAS, AdSparx USA Inc, Imagine Communications Corp. and HoneyComb Corporation.
Advertising is any paid form of non-personal promotion and presentation of goods, ideas, or services by a well-known sponsor. By using advertising systems and solutions, the entire sales procedure becomes efficient. In the global economic market, businesses are developing and adopting new advertising techniques for better penetration of their products and services within new and existing markets.
Advertising distribution systems are generally used by the broadcast stations, multichannel video programming distributors (MVPDs) and cloud providers in order to strengthen and control ad-generated revenue through localized and regional targeting. The system integrates over the top (OTT), cacheable content distribution with dynamic advertising insertion and delivery streams compatible with familiar Quadrature amplitude modulation (QAM) modulation encrypting and broadcast. With the adoption of advertising distribution system, the main goal of advertisers is to create new monetization opportunities, expand operations and reach more relevant viewers around the globe.
Advertising distribution systems are primarily software based and perform on commercial off-the-shelf (COTS) equipment which can be achieved inside a small technology footmark. By deploying the advertising distribution system components in unified distribution architecture, satellite, broadcast and cable service providers can effectively and efficiently target various advertising regions and zones.
The global advertising distribution system market is witnessing strong growth owing to the factors such as growing demand for advanced content distribution systems in order to make the video advertising distribution procedure simple and intuitive. Furthermore, growing adoption of intelligent and transparent video advertising delivery platform by companies to enhance their business processes is growing significantly due to its wide reach around the globe.Â Consequently, this is impelling the demand for advertising distribution system market across the globe.
Cloud technology is further accelerating economies and business models across multiple industries. Broadcasters are emphasizing on affordable, flexible and scalable approach for video delivery and production compared with legacy models. Therefore, broadcasters are increasingly adopting cloud-based solutions for production and distribution to reduce CAPEX and OPEX. However, broadcasters must comply with legal requirements as there are certain restrictions on advertisements. For instance, the broadcast advertising of prescription drugs is prohibited in Europe. However, they can be advertised in the US. Thus, stringent regulations and policies related to advertisement is adversely restricting the growth of advertising distribution system market around the globe.
The global advertising distribution system market can be categorized into component, deployment model, end-users and region. By component, the advertising distribution system market can be segregated into software and services. Advertising distribution system services are further bifurcated into managed services and professional services. In terms of deployment type, the market can be segmented into on-premise and cloud-based. The cloud-based deployment model is expected to witness huge demand in the market due to its capability to enhance the scalability of a broadcasterâs digital mobile newsgathering operation. In terms of end-users, the advertising distribution system market can be classified into satellite service providers, telecommunication service providers, cable television service providers, OTT content providers and IPTV service providers.
Based on region, the global advertising distribution system market can be segmented into Europe, North America, Middle East & Africa, South America and Asia Pacific. The advertising distribution system market in North America is expected to expand at a higher growth rate during the forecast period. This is primarily due to the early adoption of emerging and advanced technologies in the U.S. and Canada. However, Asia Pacific is anticipated to present lucrative opportunities in the advertising distribution system market in the near future. The advertising distribution system market in Asia Pacific is expanding at a substantial pace. Increasing demand for advanced video distribution systems among broadcasters in countries such as China, Japan and India are anticipated to create new opportunities in the region.