Adaptive’s Digital Ad Insertion Service Benefits from Cable News Networks Record Ratings
July 30, 2020, Vancouver, Washington. Adaptive Ad Systems, Inc. (OTC:AATV), today provides an update of the state of the cable advertising sector relevant to its impact on Adaptive’s expected performance. Adaptive provides Dynamic Digital Ad Insertion (DDAI) via its streaming media hardware and proprietary processing software for all U.S. cable TV markets.
Despite occasional news stories about continued tv “cord-cutting,” the latest statistics provided by Yahoo Cable Network News demonstrates a significant increase in viewership for cable tv news networks from Fox News to CNN. Supported by millions of Americans across the country remaining at home, viewers handed all three major cable news networks big ratings rewards in the second quarter of 2020. According to Nielsen Media Research, Fox News secured 1.95 million total average viewers per day in Q2. MSNBC was in second place with 1.21 million and CNN brought in 1.19 million. All three cable networks had their highest-rated quarters in history.
These improvements were dominated by the advertiser-coveted news demographic of 25 to 54, with big increases for Fox News with an average of 366,000 total-day demo viewers. CNN increased it viewership most significantly with 335,000 average total-day demo viewers, which was an increase of 150% over Q2 2019. MSNBC’s total-day demo viewers averaged 193,000. CNN was also number one in the demo during dayside for the first time in cable news in 19 years.
Revenue generated by cable providers consistently increased between 2010 and 2017, and was $85.5 Billion in 2018, with most of the revenue ($55.08 Billion) created through advertising.
Though “cord cutting” is generally expected to continue on traditional cable tv platforms, industry revenues from 2011 to 2020 have only decreased slightly, with projected revenues expected to reach $82 Billion in 2020. Adaptive Ad Systems has already solidly positioned itself in a high-value market sector of the cable tv market that has been historically less impacted by cord cutting. Furthermore, Adaptive is developing products and services that will broaden the Company’s presence within the television industry. The Company believes this will balance general trends in major markets and continue to increase Adaptive revenue.
CEO J. Michael Heil states: “As we reported in our last release, beginning in May, advertisers began to test strategic media buys to evaluate the impact of advertising while “shelter in place” rules and guidelines were active. In June, our revenue growth accelerated again, reflecting the advertisers’ regained confidence in regional ad spending as consumers showed resilience and parts of the country began to re-open to one degree or another. The increasing cable viewer time, as reported by the Yahoo Cable Network News, increases our advertisement value. Accordingly, we currently anticipate at least a 20 percent increase in third quarter 2020 revenue over the same period in 2019.”
With Adaptive’s proprietary technology and software, the Company is well positioned to take advantage of the ratings and viewer increases for the cable tv networks with its digital ad insertion network. After having established itself solidly in the Tier 2 and Tier 3 markets, the Company has now expanded its services into Tier 1 markets, currently serving over 75 designated market areas in over 40 States across the U.S.
Adaptive Ad Systems Inc. is a digital media and video communications company that, together with its subsidiaries and manufactures, develops and deploys Dynamic Digital Ad Insertion (DDAI) and video streaming media hardware and proprietary processing software for the Cable TV, Satellite and IPTV markets. The Company initially targeted the often-over-looked 2nd and 3rd tier US markets and now additionally serves many Tier 1 markets. Adaptive exclusively sells all available advertising space in each market it has contracted, while maintaining complete technology ownership. Currently, the Company’s technology and business model allows it to dynamically serve over 75 designated marketing areas in over 40 states. Adaptive also provides broadband and cable TV services in some niche major markets. For additional information, please visit: www.aatv.co.
Any statements contained in this press release that do not describe historical facts constitute forward-looking statements. Forward-looking statements may include, without limitation, financial projections, statements regarding the plans and objectives of management for current and future operations, the development, regulatory approvals and commercialization of the Company’s products, or any of the Company’s proposed services, systems, services, licensing arrangements, joint ventures, partnerships or acquisitions. Such forward-looking statements are not meant to predict or guarantee actual results and performance and actual events or results may differ considerably. Factors that may cause actual results to differ materially from any projections may include, without limitation, delays in the Company’s development of its products and services, the inability to obtain additional financing, the impact of significant new or changing government regulation on the industry, existing or increased competition, results of arbitration and litigation, stock volatility and illiquidity, and the Company’s general failure to effectively implement the Company’s business plans or strategies. The Company assumes no obligation to update any forward-looking statements to reflect any change in events or circumstances that may arise after the date of this release.
San Diego, California