The essential part of advertising revenues still comes from television, however each day traditional TV advertising is become useless and less cost-effective. According to a report from TV week magazine in 2007, upfront advertising sales in the USA has decreased %3 from the year before.And it has still been decreasing recenlty, the key point of this sag is about the measurement methods and decreasing power of Television ads of the current system. Digital Broadcasting will take a place rather than later and new television channels will increase rapidly due to the change, so that the audiences will be partitioned to watch different content.
The fragmentation of audience decreases the benefits of advertising, because Television advertisements are embedded on scheduled TV programming to deliver a real-time advertising to a specific target audience. Moreover, advertisers have to pay significant amount of budgets to broadcast their ads through the television to reach large amount of audience.
On the other hand, IPTV could be a fresh solution to the industries high budget advertising contracts. It is offering to combine the television advertising’s strong brand building opportunity with the strengths of online advertising.
IPTV gives opportunity to the advertisers to reach their unique target audience; therefore it gives a chance to customers to reach the product according to their interest. Advertising technology and method of IPTV is much more cost effective, conventional and advantageous than the traditional television.
Advertisers are insisting to change the system to IPTV, because operators has a control on advertisements; it controls where the ads goes, and it allows inserting ads to a large amount of audience or a small group of people even to a one household. The most important and notable difference of IPTV advertising method is to adjust the advertisements according to a people, who are apparently to be watching the TV at a certain time.
While watching the TV, IPTV users will able to freeze the current streamed video and they could interact with the advertising, which they were interested, and they can provide their details to take further information about the product or they can proceed directly to purchasing.
Additional to that, structure of IPTV measuring method is more efficient than the current advertising method, as internet protocol is the ID of the user, IPTV service can provide details about the user, such as, the measurement number of people, who seen a particular advertisement, additional to that, it is able to track the users behaviours, and this affects the efficiency of the advertisement.
To be continued…
Second part of the article will be available tomorrow.