Large Cable MSOs Form Interconnect Advertising Platform

In a bid to offer advanced advertising, three large cable MSOs (multi service operator), Comcast Corp. (NASDAQ:CMCSA) , Charter Communications Inc. (NASDAQ:CHTR) and Altice USA Inc. (NYSE:ATUS) have entered into an agreement to form a new interconnect platform for the New York market.

The new platform will serve as a one-stop advertising solution to more than 6.2 million households across the New York Designated Market Area. Several marketers, agencies and advertisers will strategically reach audiences across TV and digital platforms. They will be able to display their advertisements on up to 85 most popular TV network channels.

Advertisement on both legacy and mobile video platform is gradually shifting from simple selling of banner ads to automated or programmatic ad selling. Cable TV operators are also gradually adopting the data-driven advertising technique which is already popular in the web-based advertisement arena.

Advertisement in the mobile TV network is gaining huge market traction for the corporate world. Since each mobile device is connected to a specific viewer, the scope for target audience advertisement is enormous in this industry. The multicast mobile TV industry has achieved a significant milestone of viewership rating and advertising impression reporting system.

To derive maximum synergy from the combined video content and video distribution platform, cable MSOs are extensively penetrating into the advertising technology market. Inclusion of dynamic ad-insertion, targeted audience advertising and data-driven TV advertisements is a step toward the same objective. Telecom giant Verizon Communications Inc. (NYSE:VZ) also plans to create an innovative digital advertisement platform in order to enter the data-driven advertisement market.

The cable TV industry in the United States is highly matured and saturated. Most large media companies’ flagship cable channels are already distributed. In this situation, an integrated targeted ad-platform will be of immense help for ad agencies in order to expand their reach by spending a small portion of their budget.

Altice currently carries a Zacks Rank #4 (Sell). However, Comcast, Charter and Verizon carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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