"TV Learning the Importance of Targeting"

Although targeted advertising has been present on the Internet for years, television is behind the curve.

The Wall Street Journal details  a study from Comcast and media firm Starcom MediaVest that confirms, once and for all, that targeted television advertising is indeed effective — viewers are approximately one-third less likely to change the channel when an ad is targeted specifically to them (their location/market/etc) than when they are shown a traditional ad.

The study is particularly relevant considering that the current $70 billion U.S. television-ad market is rapidly decreasing as advertisers look to the Web as a more effective platform. Furthermore, this kind of targeted advertising is becoming increasingly important as the spread of VOD and DVR technologies make it easier for viewers to skip commercials. For television advertising to compete with the lucrative online ad market, it must be able to target ads in the same way they can online – with “real-time” insertion opportunities and geographic segmentation and targeting.

This presents an opportunity for technology companies like Harmonic, Inc. (a Sterling client) to develop ad insertion solutions that are less tedious and complex than current processes and that don't negatively impact the quality of the video -- common roadblocks to mass adoption. Should be an interesting space to watch as Comcast and Starcom MediaVest expand their study and more operators begin to play around with targeting.