YES, THERE IS ANOTHER way to create new, sustainable revenue streams for all participants of the system (Re: COMMENTARY: People won’t stand for it, January 31). Hyper-targeted digital advertising is on the verge of truly changing the ad model for North American television operators both conventional and specialty. It works the lab now and is moving to the field this spring, and more trials are coming in 2008.
I am somewhat sympathetic to the challenges facing firms like CTV and Global and understand their arguments. However there are alternatives to taxation that may in fact be better for all parties.
Companies like Invidi, a Canadian startup in 1999, with their management office in Princeton New Jersey, are at the very forefront of a software revolution that could generate CPM rates that are significant percentages greater than today or even multiples of current rates because there is accountability and proof the spot was actually delivered and watched. The viewer benefits because he or she sees ad spots that are relevant to them with just the right frequency.
Hyper-targeting can aggregate audiences and demographics. It can deliver different car models to different set top boxes in the same spot break, based on a wide range of viewing criteria. If you recall the “Long Tail of Advertising”, it is about to become a reality.
Our $3.2 billion television advertising industry has been estimated at between $4 and $5 billion within just five years of broad deployment of hyper-targeting. That’s a good chunk of money to be earned within the current system. And the good news is that the technology runs on current digital cable and satellite boxes.
It is a longer story of course, but those relatively few in North America that have seen this technology have truly seen a more profitable, accountable future. The good news is that every set top box can become an audience measurement device as well. Is it better to have six million meters and growing or a few thousand as we have today?
Hmm, that’s another topic.
Earning rather than taxation is a better way to generate revenue for everyone.
I must now declare my bias in favour of the technology as Capital Networks is working to assist Invidi in launching across the Canadian market.
Sincerely,
Bil Trainor
President
Capital Networks Limited
www.capitalnetworks.com
