As consumers navigate through the prevailing economic conditions, discretionary spend on value added services is bound to decrease. The Cue Zones solution enables the mobile TV value-chain with high value interactive impressions to offset declining ARPU from pure subscription models, said GoldSpot Media.
Traditional TV broadcasts to mobile devices have lengthy ad-pods embedded in the content streams. The probability of consumers tuning into a channel after an ad-pod has finished playing and of tuning out of the channel before the start of the next ad-pod (or as soon as the next ad-pod starts) is high. Inventory owners will be challenged to generate ROI for mobile streaming and broadcast TV services if they rely on ad-pod models.
Srini Dharmaji, president and CEO of GoldSpot Media, said: Inventory sharing models from traditional TV alone cannot sustain ad funded mobile TV services. Non-video interactive advertising can be a valuable substitute for an industry grappling with lack of short form video ad inventory. GoldSpot’s Cue Zones technology brings good standards from cable, online and mobile worlds to service providers and content providers. Combining Cue Zones and targeted video ad replacement in ad-pods can solve the Catch-22 in mobile TV business models and accelerate mass market, subscription free services.