TelcoTV 2005 sees the official US launch of Packet Vision (Booth 418), developers of a new delivery platform that enables many highly-targeted IPTV advertisements to be shown simultaneously in one avail. Demographic groups, individual households – or even specific TV sets - can be targeted. The system also gathers information about viewers' reactions, enabling advertisers to see whether an ad was watched and to explore new, interactive forms of advertising like narratives, telescoping and web-based ads.

UK-based Packet Vision is the first company in the world to combine a media server, splicer, playout router and management system in a single 'pizza box' style enclosure that is purpose-built for IPTV. Until now, network providers wanting to deliver targeted advertisements have had to combine products from different manufacturers that have usually been designed for cable networks rather than IP. The process has typically been complicated, expensive and very difficult to scale.

'The addressability of IPTV makes it possible to achieve much more granular targeting than is possible with terrestrial, satellite or cable television,' says Packet Vision CEO, Patrick Christian. 'One ad slot can deliver hundreds of ads, each targeting a specific audience. Advertisers have long sought the Holy Grail of a one-to-one communications channel with TV viewers and IP certainly makes this possible. However, the delivery solutions available to date haven't been designed to cope with this level of granularity – or anything approaching it. Packet Vision has taken a fresh look at what is needed to deliver truly personalized advertising and has developed a scalable, cost-effective platform that for the first time will make one-to-one television advertising feasible.'

One slim-line 19" rack-mounted Packet Vision box – which will be launched in early 2006 – will support up to 200 IPTV subscribers/subscriber groups and up to 200 input channels. The device has been designed to be scalable so that network providers can start with one box and then add others when subscriber numbers grow or when increased granularity is required: moving towards the one-to-one scenario. There is also the big benefit that Packet Vision's product is sited within the network and no changes at all are needed to viewers' set-top boxes.

'Both advertisers and service providers see IPTV as a huge opportunity,' says Patrick Christian. 'Advertisers can target audiences much more precisely and get accurate feedback about how their commercials are being received – and not annoy viewers with off-target messages or showing the same ad too frequently. For IPTV service providers, who have traditionally been left out of the advertising value chain, addressable advertising is a valuable way of generating revenue which will become increasingly important as margins on basic TV services get squeezed by competition from the cable, satellite and terrestrial operators.'

Anette Schaefer, Director Broadband and Media, of Yankee Group Europe Middle East and Africa confirms that IPTV advertising will be a boon to service providers:

'Despite the uphill struggle to establish effective business models, IPTV operators will enjoy a real competitive advantage against cable and satellite TV in the long term. With a declining advertising market and an increasingly fragmented media environment, broadcasters must find new ways to reach more customers and satisfy advertisers' demand to build customer relationships. IPTV could become the gateway to interacting with viewers and building a much more valuable advertising platform than traditional TV alone can offer.'

At TelcoTV Packet Vision – which is already working closely with several key US companies – will demonstrate proof of concept of the product. Attendees can choose demographic groups for two 'audiences' and the product automatically and seamlessly inserts advertisements that are appropriate to the groups chosen into the next ad break.

For more information, interviews, photos and demos, please contact: Maxine Ambrose, maxineambrose@ambrosecomms.co.uk, +44 1491 412944 or Jane Lee, jane.lee at dexterity.co.uk, +44 1273 470199 or Therese Penny, therese.penny@packetvision.com, +44 1865 391116.