Channel 4 leads the way with targeted advertising

by Emma Barnett, Media Week 14-Oct-08, 14:00

LONDON - Channel 4 has become the first commercial terrestrial broadcaster to launch targeted advertising via one of the UK's main IPTV services, Inuk.

Following a deal between Packet Vision, an IPTV ad technology provider, Channel 4 and Inuk Networks' Freewire IPTV service, targeted ads will be carried around Channel 4 content on the IPTV network.

Under the year-long deal, which began last week, Channel 4 will replace the mainstream commercial airtime ads on the IPTV network with ads specifically targeting students.

The Freewire IPTV service is available in halls of residence across 41 UK universities and 80,000 students currently subscribe.

Packet Vision and Inuk networks are in talks with other major broadcasters about further tie-ups. In the first phase, which is occurring now and covers the first university term, Packet Vision will replace Channel 4's commercial airtime with student ads.

Following this, gender targeted ads will be delivered, while in the final, third phase, Packet Vision will deliver interactive ads for Channel 4.

The targeted Channel 4 ads are being launched with seven advertisers that are represented by Walker Media, PHD and MediaCom.

Barry Llewellyn, Packet Vision vice-president, sales and marketing, said: "This model has huge implications for TV advertising and means that broadcasters can have multiple ads going out (over different TV platforms)."

The deal was negotiated by Llewellyn and Merlin Inkley, head of airtime management, and Andy Barnes, sales director Channel 4.

Separately, Virgin Media has launched its first targeted advertising trial on its video-on-demand TV platform, featuring advertisers such as Kellogg's, John Lewis and Royal Mail.