Need to know: The Next Big Thing ... IPTV and addressable ads

by Claire Foss, Marketing Direct 28-Feb-06

What it is IPTV, (Internet Protocol Television) is a way of transmitting digital television to subscribers through a broadband internet connection.

Viewers' actions are recorded via a central network - meaning that data
on viewers and their TV habits can be collected.

Who's doing it In the UK, IPTV is available from HomeChoice and Kingston

Communications. Microsoft and Sky are working together to provide an

IPTV service and BT and the BBC are also looking into the
technology.

The lowdown The data collected from IPTV viewers is driving the
development of addressable advertising, where marketing messages can be
tailored and sent to individual subscribers. Meanwhile, UK company
PacketVision is developing technology that will enable addressable
adverts to be placed in live-stream television as well as
video-on-demand content.

Patrick Christian, managing director of PacketVision says: "It's about
personalising adverts and offering levels of interactivity."

Richard Dunn, planner at agency DSJ says: "It's definitely going to
change things. We'll also be able to tighten targeting, strengthening
the key advantage of direct media - the ability to invest only in those
who will be most receptive to your message. Other change will be in the
skillsets required by agencies: DM data, response and creative skills
will all be in demand."

HomeChoice, the UK's biggest IPTV provider, already has the means to
collect data on customers and their preferences. Christine Mitchell,
executive director of TV at HomeChoice, believes that take-up won't
happen overnight, but "will be more of an evolution".

Are there any downsides to the technology? "Privacy is an issue and
there are other things to overcome," says Mitchell. "It has to be
user-friendly, economical and we have to implement it practically.
Equally, people in advertising are just getting to grips with it. But
the benefits will outweigh the downsides."