Increasing Transition to IP Video Deliver Drives the Global Ad Insertion Servers Market Forward

written by: Richard Kastelein

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Rapid developments in digital technology, the shift from analog to digital format, and the move towards high definition (HD) content has transformed the television broadcasting industry, offering a plethora of opportunities to broadcasters, equipment makers, advertisers, and service providers. As a result, consumers can now access high quality video and audio content over media such as satellite, cable, Web-based and mobile networks, and Internet protocol television (IPTV). In addition, these advancements allow consumers to receive as well as interact with highly personalized/ targeted ads. Rapid expansion in the available content services is thus driving service providers and broadcasters to focus on deploying advanced ad insertion technology across their facilities so as to enhance revenue generation opportunities.

GIA announces the release of a comprehensive global report on Ad Insertion Servers markets. The global market for Ad Insertion Servers is projected to reach US$235.7 million by the year 2018, driven by the global media’s transition towards digital format, and the increasing demand for high quality video content over satellite, Internet, cable and IPTV networks. Growing awareness about revenue enhancing potential of targeted advertising also favors growth in the Ad Insertion market. Market is also favored by the declining cost of Ad and Video Servers, which facilitates their adoption across a wider market segment.

The recent global economic slowdown during 2008 and 2009 left the global market for ad insertion servers hurting. The global market for ad insertion servers stood substantially weakened during the period, as the financial crisis led economic slowdown negatively impacted the sales of ad insertion servers. During the period, spending on ad insertion servers and other digital equipment took a drastic fall, mainly due to the huge budgetary deficits of marketers and ad agencies, and their reliance on local instead of international media buying habits. The market staged a healthy comeback in 2010, driven by the resurgence in growth fundamentals, and subsequent improvement in spending capabilities of end-users. With the relative stabilization of the global economy, a sense of normalcy returned to the ad-supported media economy in 2011. Future growth in the global ad insertion server market would be driven by the increasing demand for dynamic and advanced ad insertion solutions from service providers and broadcasters, across the globe.


In order to address the expanding demand for digitized services offering personalized as well as interactive services to consumers, cable or IPTV service providers and broadcasters are upgrading their infrastructure by including ad serving and video technology while making the switch from analog to digital broadcasting. Moreover, advanced ad insertion solutions allow broadcasters to monetize time-shifted services such as networked personal video recorders (NPVR) and video-on-demand (VOD). With the global transition of analog broadcasting to digital format and the emergence of diverse media platforms including IPTV, satellite and digital cable, consumers are increasingly being provided with access to a wide range of interactive services and digitized movies, shows and other media. Increasing popularity of digital services is expected to enhance demand for ad-insertion platforms, thereby emerging as a new revenue stream for operators.

As stated by the new market research report on Ad Insertion Servers, the United States represents the single largest market worldwide. The traditional forms of national and local television advertising in the region continue to face stiff challenge from the rapidly expanding digital media formats, namely Internet and mobile advertising. Asia-Pacific represents the fastest growing market with a CAGR of more than 10% over the analysis period. The global economic meltdown played a vital role in facilitating the shift of ad investments towards digital media in emerging markets of China, Brazil and India, along with Middle East and Africa. Companies are steadily making efforts to enhance spending on digital media as well as emerging markets, reflecting potential growth opportunities in the region.

The ad insertion landscape has witnessed significant changes in the past few years. High growth prospects have fostered M&A activity in the industry, whereby larger players sought to strengthen their ad insertion portfolios by making strategic acquisitions. Major players profiled in the report include Alcatel-Lucent SA, Anevia S.A.S, ARRIS Group Inc., Cisco Systems Inc., Concurrent Computers Corporation, Edgeware AB, Harmonic Inc., Harris Corporation, Limelight Networks Inc., mDialog Corp., Motorola Mobility Holdings Inc., NDS Limited, RGB Networks, SeaChange International, Telefonaktiebolaget L. M. Ericsson, and This Technology LLC, among others.

The research report titled "Ad Insertion Servers: A Global Strategic Business Report" announced by Gobal Industry Analysts, Inc., provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections across geographic markets such as the US, Canada, Japan, Europe, Asia Pacific, and Rest of World.

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