Opportunities of interactive formats for innovative advertising on digital television

Abstract

The arrival of new technologies destabilizes the traditional television advertising markets. This evolution is fairly problematic as most broadcasters nowadays are only financed by advertising revenues. As the investments in TV advertising are declining, broadcasters pursue new business models and additional revenue streams. Looking into the different applications of interactive digital television, we discover several opportunities for branding and direct marketing purposes which could revive the classical 30 second spot. Despite these opportunities, the use of interactive advertising formats on television remains fairly limited. During our research, the available interactive advertising formats were evaluated by broadcasters, advertisers, media and advertising agencies. Results show that all interactive advertising formats offer interesting opportunities, but several thresholds such as e.g. the lack of accurate measurement tools should be eliminated in order to convince advertisers to invest in these innovative formats.