It could hurt the digital add insertion market. They could try to colaborate on targeted advertising......................
CHICAGO and NEW YORK and HORSHAM, Pa.--(BUSINESS WIRE)--June 15, 1999--Today, some of the advertising industry's leading executives commented on the groundbreaking addressable advertising initiative announced yesterday by [ ACTV, Inc. ] (NASDAQ: IATV) and [ General Instrument Corporation ] (NYSE: GIC). The two companies will work together to develop and introduce a comprehensive, end-to-end solution for delivering addressable, targeted advertising via digital cable, satellite, and broadcast television.
GI will combine its digital interactive system and consumer set- top terminals with ACTV's proprietary "Individualized Advertising" software and programming capabilities to deliver this complete solution, which will improve the effectiveness and accountability of television advertising. Demonstrations of the new system are being held at ACTV's Booth No.2154 at the National Cable Television Association (NCTA) annual convention, June 14-16, in Chicago, IL.
Mark Stewart, executive vice president and media director, McCann- Erickson, said: "We've been familiar with ACTV's capabilities for some time, and feel that the market is now ready to take the next step into greater individualization and interactivity through what was traditionally a one-size-fits-all medium. We are looking to bring our clients more than enhanced television simply for the sake of enhanced television. With ACTV and General Instrument, we believe we will now be able to provide greater, tangible added value and improved results and accountability. We look forward to blazing this new trail with them."
Alec Gerster, chairman, Mediacom Worldwide, a division of [ Grey Advertising ] , said: "While we all eagerly anticipate the tremendous media and marketing benefits of a digital television environment, the industry needs enabling organizations to make it happen. It looks as if ACTV and GI are doing just that in one of the most promising aspects of digital television - selective targeting. The ACTV/GI plan calls for the kind of targeted advertising that promises not only reduced waste and better return on the media dollar, but also an improved consumer viewing experience with reduced clutter of non- relevant messages."
exchange2000.com
Or, it would cost the consumer 10s of billions, just in Canada. 1993 data...........................................
According to Marketing Magazine, the gross advertising revenues for all media reached $9.0 billion in 1993. Newspaper advertising accounts for 26.8 percent of this total; radio and television for 27.0 percent; catalogues and direct mail, 21.8 percent; periodicals, 15.9 percent; and outdoor and miscellaneous advertising for the remaining 8.5 percent. (1)
Advertising may be divided into local and national components. The first one, local advertising, represents about sixty percent of all media advertising,i.e., $5.4 billion. This advertising is usually placed directly by the advertiser with the assistance of media representatives and may not require the services of an advertising agency.
The second component of advertising, national advertising, accounts for the remaining forty percent of all media advertising or $3.6 billion in 1993. It is responsible for the bulk of advertising agencies' revenues. National advertising is initiated by large businesses, such as automobile manufacturers or soft drink companies, which market their products and services nation-wide. It is coordinated by advertising agencies which create the message, develop media plans and ensure the proper production and placement of the advertising. Television is the primary, but by no means exclusive, medium for national advertising.
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