Thursday, June 19, 2008

What Does Microsoft's Navic Acquisition Tell Us About The Future Of TV Advertising?

Do clickable or interactive TV ads overcome the effect of time-shifted viewing?

Will interactive TV ads provide dynamic and more relevant info?

So much of TV viewing is done with the use of a DVR (digital video recorder) or TiVo. An ad placed in the original viewing time might not be relevant when viewer actually watches.

If an advertiser could "switch" the ad, or make it interactive, regardless of when the show was viewed, does this save TV advertising?

Yesterday Enders Analysis announced the Internet will overtake television as the biggest advertising medium in Britain this year.

The main engine for growth continues to be paid search on sites such as Google but Enders said it had also seen early signs that the popularity of online video is now making a small contribution to a shift in advertising from television to the Internet.

On the same day Microsoft announced they will acquire interactive TV ad player Navic Networks.

From Washington Post:

Navic's ads are interactive overlays similar to what some advertisers are trying with online video. Except that they are targeted by zipcode to each cable subscriber.

As you are watching a regular TV commercial, for instance, you could click on an overlay that opens up a window with more information on the screen, or ask for a brochure to be sent to you via e-mail or regular mail (since the cable company has your address, that's easy)

Over two years ago Microsoft announced their intent to cash in with click-on ads.

Advertisers pay top dollar to place products in popular television shows and movies.

Microsoft is hoping to expand on the concept with a new technology that allows viewers to click on cars, clothing or other products that appear in online movies or TV shows. For example, viewers of "Sex and the City" could click on Carrie Bradshaw's designer shoes or Kamali sweaters as she walks down a New York street and immediately be transported to advertisements for those products.

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