A company called Gracenote will soon bring targeted advertisements on smart televisions in the coming year. This kind of marketing is commonplace online. Both Google and Facebook are popular users of targeted ads. On television, however, the strategy is yet to be explored, and many products are misdirected to the wrong groups of people. This costs sponsors large sums of money, and provides viewers with advertisements that are irrelevant to their lives.
The new technology from Gracenote promises to revolutionize the situation. Essentially, Gracenote runs ads that are selected by smart TV and set-top box companies, replacing those that are broadcast by channels. Like online ads, these television ads will take into account factors such as the gender, age, and income, among others, of the smart TV owner, in choosing which ads to show. On the flipside, it gives sponsors improved data about the audience of the ads. This will enable various sponsors to advertise different products in a single timeslot, since the ads will cater to various groups of people. For instance, an ad for a car will be shown to male viewers, whereas one for cosmetics will be shown to female viewers.
The Gracenote advertising model is vastly different from the current practice of sponsors choosing timeslots that are popular with their chosen demographic. According to TechCrunch, this initiative will expand the TV advertisement market, which is currently estimated at $70 billion. Both Gracenote and sponsors will earn from the model.
The technology is expected to be debuted during CES 2013 in January. Trials will also begin in the same year.
Gracenote is a company that began in 1998 as the Compact Disc Data Base (CDDB). In 2008, it was acquired by Sony. At present, it “provides the largest database of music and video metadata and is the world’s leading distributor of this content,” according to its official website.
Category: Tech News