High definition commercials now make up one-fifth of all TV commercials, almost double the share year-over-year, Media Post reported.
According to a new study conducted by Extreme Reach, for the second quarter of 2011, the spike is due to lower distribution costs, more local TV adoption of HD commercials and a simpler execution of HD spots in overall campaigns.
Low-cost, cloud-based services have lowered costs for some business segments by 30 percent, said Extreme Reach. Right now, 94 percent of local TV stations able to take HD commercials use cloud-based services. Overall, 44 percent of local TV stations and 63 percent of cable operators are HD commercials-capable, versus 27 percent and 50 percent in the previous year, respectively.
Extreme Reach pointed out that though only major brand advertisers had used HD commercials, now even regional and smaller marketers are also adopting HD into their campaigns.
“Advertisers had been in a holding pattern for a while when it came to HD. The Q2 numbers reaffirm what we’ve heard from advertisers for a while: When key industry hurdles to adoption become less pronounced, you’ll see more and more HD ads on TV,” said John Roland, CEO of Extreme Reach.
Image: HDTV Biz News