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BigBand Networks, Inc. (NASDAQ: BBND), today unveiled a market first IP-based targeted advertising application. Operators using the application can increase advertising revenue generated from live TV that is delivered to both set-top boxes and IP-connected devices. With its patented virtual zoning technique, BigBand has created a method for digital TV service providers to deliver ads based on targeting criteria most attractive to an advertiser. Ads can be sent to traditional ad zones, to groups of devices based on demographics, or to geographic areas down to zip+4 codes.
Featuring the BigBand Media Services Platform (MSP), this network-based application allows ad delivery to be verified by the service provider’s network in a manner consistent with today’s measurement which is familiar to advertisers and ad agencies. The targeted advertising application integrates with existing back-office systems and is the first dynamic ad insertion for multicast IPTV with virtual zoning. The application dramatically reduces the bandwidth necessary to deliver both zoned and targeted advertising.
“Technical solutions that allow operators to create advertising inventory from advanced TV and IP-based systems are important elements to sustain and grow company revenues in today’s splintering TV ad market,” said Heather Way, Research Analyst, Parks Associates. “Virtual zoning is a practical transition from traditional geographic boundary targeting providing a high degree of flexibility for service providers to refine TV addressability while increasing the value proposition for advertisers.”
Virtual Zoning Leads to New Multi-screen Advertising Opportunities
The traditional TV industry continues to garner the lion’s share of video-based ad revenues despite the growing online video and mobile ad market. Parks Associates estimates revenues generated by digital-TV service providers and cable networks will reach approximately $28 billion by year-end 2011. Advanced TV ad revenues will fuel revenue growth with the market reaching $35 billion in 2015. To preserve and expand ad spends, both operators and advertisers are seeking new ways to reach consumers via multiple viewing screens in addition to more relevant, targeted advertising experiences to the traditional TV.