Backchannelmedia

TV Technology, April 16, 2007

Newcomer Wants to Kick-start iTV Ads

By Claudia Kienzle

Backchannelmedia projects that the $68 billion currently spent on broadcast television advertising could double to $140 billion if their new interactive, addressable advertising solution is employed.

"Our Backchannelmedia solution enables accountability that the conventional television advertising model doesn't currently offer," said Michal Kokernak, co-chief executive officer of Backchannelmedia. "Since viewers can immediately respond to offers they see in commercials, advertisers have the ability to quickly gauge the response to their ads and to use that feedback to refine the way they buy spot time in future media campaigns."

Accountable Ads

With the support of private funding, Backchannelmedia was founded in 2000 to develop a way for television advertising to become accountable. Kokernak says that he has spent the last 10 years doing exhaustive research into all of the broadcast and cable technologies involved in forming an efficient, automated, interactive advertising solution. In his 20-year career, Kokernak's career spans management positions in television advertising, home shopping networks and financial sector.

Kokernak runs the company with Daniel Hassan, who, as the son of Schering-Plough Chief Executive Office Fred Hassan, brings valuable connections within the Fortune 50 community, as well as knowledge of finance, mergers, and acquisitions from his work Goldman Sachs.

Metadata Link

The Backchannelmedia software suite offers tools that enable special links to be inserted into a commercial, and it travels as metadata in the broadcast transport stream down to the viewers two-way digital set-top box.

Viewers interested in responding to the offer can simply press one button on their remote control or use their cell phone pads and their requests are then saved to Backchannelmedia's Digital Gateway linking to that cable or DBS provider's Web site.

"From there, consumers can visit the Web site to purchase the product, download videos and music, or launch the advertisers' Web sites in a new browser with this 'digital gateway,'" Kokernak said. "So rather than just making an impression on viewers, the interactivity of the ad drives interested consumers to the Internet where they can investigate the advertised product, buy it, opt for a special offer, or take other actions."

According to Backchannelmedia, this data can then be harnessed by the agency or advertiser to determine the effectiveness of a particular ad- since that metadata identifying that particular TV ad will be preserved and maintained with the response. So advertisers can determine which run times were most effective, and how consumer demand shifter over a period of time, among other feedback.

"When fully realized, this system will even be able to help advertisers target individual households, or viewers in a particular demographic profile or geographic location," Backchannelmedia said. "And as more consumer data is recorded and analyzed, the system becomes more intelligent." The Backchannelmedia solution is also impervious as to whether the ad is viewed live, or using time-shifted technology, such as TiVo or DVRs. Viewers always have the option to click on the link on the TV ad because the metadata follows the content to the DVR.

"This new digital platform is open-standards compliant, and works seamlessly with the existing broadcast and cable infrastructures and equipment already installed at stations," Backchannelmedia said. "The interactive ads can be processed by industry-standard traffic and automation systems. It can also leverage the TVB ePort infrastructure [see related story] to execute local TV ad campaigns."

Kokernak said that Backchannemedia doesn't dictate spot pricing or reveal spot inventories or availabilities to advertisers unless stations select that as an option. Also, stations could potentially charge for the link as well as the spot time, and all of the broadcasters' new digital outlets could be included in the buy.

Backchannelmedia is currently developing and testing its solution in the hopes of deploying it by Feb. 17, 2009, the date that broadcasters will shut down their analog channels.

Note: This article has been modified from its originally published form.