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The Many Forms of Addressable Advertising

National TV networks and local broadcasters are increasing their use of addressable advertising technology, and are also expanding their plans for addressable advertising on their Internet portals, according to In-Stat.

With the explosion of video, especially broadcast TV programming, flooding onto the Internet, national networks and local broadcasters have an incredible opportunity to become key distributors of addressable advertising that extends beyond traditional TV screens.

Addressable advertising refers to any form of advertising that is placed under the control of the advertiser. However, I believe that this term can be expanded to include ads that are known to be relevant to the consumer's interests and lifestyle. Meaning, this technology can aid segmentation and personalization efforts that improve advertising relevance.

"We see the worldwide market for addressable advertising infrastructure equipment, software and services showing very strong, sustained growth in each geographic region for at least the next several years," says Gerry Kaufhold, In-Stat analyst.

In-Stat research found the following:

- The worldwide market value of addressable advertising will exceed $680 million during 2011.

- When a viewer is watching a TV program on the Internet, the play out system can automatically insert very short 5 or 8 second addressable ads.

- Competition from cable TV, telco TV, and Internet TV is heating up, but traditional broadcasters can still hold onto their lead in advertising.

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