IBC2005 sees the official European launch of Packet Vision (stand 3.218): developers of a new delivery platform for highly targeted IPTV advertisements that combines a media server, splicer, playout router and management API in a single 'pizza box' style enclosure. The product enables many advertisements to be shown simultaneously in one slot – or avail – targeting demographic groups or even individual households.

At the show Packet Vision will be demonstrating proof of concept of the product: attendees can choose demographic groups for two 'audiences' and the product automatically and seamlessly inserts commercials appropriate to the groups chosen into the next ad break.

'IPTV has enormous potential for targeted advertising,' says Packet Vision managing director, Patrick Christian. 'Because IP is addressable, targeting can be much more granular than is possible with terrestrial, satellite or cable television – down to individual households or even specific TV sets. One ad slot can be used to deliver hundreds of ads with each targeting the relevant audience.

'The bi-directional nature of IP is also a great asset: viewers' responses can be identified, enabling advertisers to see whether an ad was watched and to explore new, interactive forms of advertising like narratives, telescoping and web-based commercials.'

Until now, network providers wanting to deliver targeted advertisements have found the process complicated, expensive and very difficult to scale. The only option has been to combine products from different manufacturers – generally a media server, splicer, playout router and management system – which have usually been designed for the cable networks rather than for IP.

Packet Vision's product, however, is the first product purpose-built for the IP environment that combines all the functions needed for addressable IPTV advertising in a single slim-line 19” rack-mounted box. This approach is much more cost-effective than combining discrete products, and one Packet Vision box can 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 increased granularity is required. There is also the big benefit that Packet Vision's product is sited within the network, needing no changes at all 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.'

Bob Larribeau, principal analyst at MRG (Multimedia Research Group) comments: 'As the telcos and other IPTV service providers establish their video service businesses, they will find important opportunities by providing unique services to local and other businesses that want to target their messages to specific audiences. The IPTV service providers will be most competitive when they take full advantage of the ability of an IP network to address specific groups and even individuals. Packet Vision's strategy to capitalize on this fundamental ability of an IPTV network to address specific populations based on location or by interest affinities can put the IPTV service providers into a very competitive position.'

For more information, interviews, photos and demos, please contact:

Maxine Ambrose, maxineambrose@ambrosecomms.co.uk, +44 1491 412944
or Jane Lee, jane.lee@dexterity.co.uk, +44 1273 470199
or Therese Penny, therese.penny@packetvision.com, +44 1865 391116