One another benefit for the advertisers is to locate their ads to the relevant audience or ads won’t disturb the audience who has no interest on that product. More importantly, methods of advertising payments can be structured according to actual viewers watching, percentage of the product sales or according to button presses.
Diversified audiences are concerning if the current TV advertising models are sustainable. The new broadcasting system enables multiple ad formats, such as, advertisements can be inserted on information screens, as a buffer when a movie loads or as a speed bumps, while the video is streaming, or to the set-top box boot. Due to the cost of the IPTV advertising, it attracts local companies or low budget firms to insert their ads on IPTV programming.
As mentioned before, IPTV will increase the number of television channels, this will increase the importance of the local television channels, because they could have chance to grab a slice from the advertisement revenues, which will be attractive for local companies.
It is obvious that demand of advertising on television will enlarge respectively. IPTV advertising market in France is the leading the targeted advertising models, but other IPTV service providers in Europe are experimenting new methods of advertising, for instance, Telecom Austria is approaching to the local companies to receive revenue by its new developed Ultra-Local advertising models, again Telecom Austria developed Honda channel with tiscali TV, which runs in the UK.
British Telecom also offers IPTV advertising through the BTvision system, Verizon, which is delivering IPTV in the USA, is currently working on technical tools to provide advertising support to its customers. It is evident that IPTV will bring new dimensions to the advertising models.
At last, IPTV advertising is going to combine the power of internet advertising and television advertising.