TV Makers Track What Viewers Watch

TV Makers Track What Viewers Watch

TV Makers Track What Viewers Watch Seeking Access to Ads

Coming Web-connected units from LG Electronics Inc. (066570) and other manufacturers contain digital sleuthing technology that tracks live and recorded programs as they’re shown on-screen

…..Major players including Samsung Electronics Co. (005930) and Vizio Inc. are discussing using such software in their sets, Cognitive Chief Executive Officer Michael Collette said in an interview. Manufacturers are trying to carve a slice of a worldwide TV advertising market forecast to total $196.5 billion this year by researcher Magna Global. Any ad revenue could help TV makers improve profit margins, which have suffered amid slowing demand and price competition.

The technology from both Cognitive and Gracenote scans pixels on connected screens almost continuously to determine, for example, what a viewer is watching and where in the program they are.

A pizza chain could theoretically ask for an ad insertion at a commercial break to offer 10 percent off to viewers near its shops, and LG could tie in Skype calling so the person never leaves the couch. Proceeds, after the networks’ share, would be divided between the software companies and TV makers.

Because so-called dynamic advertising can be better targeted to the individual, some advertisers are willing to pay a premium of as much as 25 percent above traditional television advertising, according to Ooyala, a Mountain View, California-based company that analyzes video data.

While the technology could threaten traditional ads, companies that pursue a multiple-device approach and seek to coexist with existing ad systems have the best chance of success, Gracenote’s White said.

“When you have content and context-aware devices, the reality is you can do a lot more to hyper-target consumers and give them information they care about,” White said.

See the full Bloomberg Press story here : TV Makers Track What Viewers Watch via @BloombergNews
Author: Cliff Edwards

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