Canoe: Dynamic ad insertion into cable VOD spikes another 8% in Q2

Driven by increasing participation from programmers, Canoe reported an 8 percent quarter-to-quarter uptick in dynamic ad insertion (DAI) impressions into cable VOD for the second quarter. 

Canoe, a joint venture launched by Comcast (NASDAQ: CMCSA), Time Warner Cable (NYSE: TWC), Cox Communications and Bright House Networks, reported a total of 2.77 billion DAI impressions during the second quarter.

The figure more than doubled the 1.32 billion DAI impressions delivered in the same quarter of 2014. For the first two quarters of 2015, the participating cable companies have delivered 5.34 billion impressions, according to Canoe, almost matching 2014's full-year total of 6.3 billion.

Chris Pizzurro, head of of product sales and marketing for Canoe, told FierceCable in May that he expects DAI impressions to double in 2015 due to more programming networks buying ads.

"We know, at least from our business point of view, we have 65 networks running on the system," he said. "I already have 120 who are under contract. So we already have another 60 in the pipeline that we'll be bringing on. That steady growth is guaranteed."

The growth in ad impressions also comes as operators like Comcast are seeing significant increases in VOD use by subscribers, as well as buy-in from programmers. With much of this usage occurring more than three days after initial airing of the programming--and out of Nielsen's C3 metric--DAI is an increasingly important means for cable companies and their programming partners to monetize viewing.

Canoe, however, has not reported the actual revenue figures tied to all these impressions. 

Other interesting tidbits from Canoe's latest report:

  • 89 percent of DAI ad campaigns during the second quarter were from actual outside brands; only 11 represented "tune-in" ads from programmers looking to drive audience to other programming.
  • Sundays were the biggest days for cable DAI, generating 4.59 million impressions in the second quarter; Wednesdays were the slowest, generating only 3.57 million impressions.
  • Of impression types, mid-roll dominated, accounting for 2.34 billion of the 2.77 billion impressions delivered in the second quarter.  

Related articles:
Canoe's Pizzurro on the company's big pivot to dynamic ad insertion
Canoe: 4-day-old cable VOD ads are more effective than standard TV commercials
Canoe now reaching 130 DMAs, 48 out of top 50
Canoe: Ad impressions more than tripled from Q1 to Q4 to 2.52B