If consumers pay less for
content on the net, media enterprises will need to turn to advertising to
sustain incomes. One technology that could improve the effectiveness of
advertising is Interactive Television (iTV).
iTV is television with a “return path”. Information
flows not only from the network to viewer, but also back from viewer to
network. This is useful provided the system has the ability to customise
viewers’ content.
Some degree of interactivity, such as on-demand
delivery and online shopping and banking, has existed for some time. But to be
truly interactive, the viewer should be able to control the viewing experience.
For instance, if you are watching a tennis match, with iTV you could choose to
watch at an angle where the camera focusses on your favourite player.
Interactivity has four main applications:
- Customized viewing experience: Viewers are able to control their
viewing experience.
- T-commerce:
Viewers will be able to use their remote to shop for products advertised on the
screen without dialling a phone.
- Other frills: Viewers can pause live TV or record shows, click on
advertisements (or other content) for more details.
- Consumer analytics:
Analysis of the clickstream can provide marketers with a profile of each viewer,
revealing their needs and preferences. This should help better direct
advertising (addressable advertising) and direct marketing efforts.
Addressable advertising could greatly improve
advertising effectiveness by targeting products and advertising messages that
are better attuned to individual households. The click stream would tell
marketers which ads are being accessed and allow them to alter ad messages in
real time.
Interactivity is still
experimental for now, yet companies are hoping that in-built interactive
elements will serve to differentiate their content, enhance customers’ viewing
experiences, and permit advertisers to better direct their marketing efforts.