SAN FRANCISCO: Chipmaker Intel
imagines a day not too far away when a woman would walk into a
department store and a smart digital signage -- instead of posters --
would display a women's perfume ad. But when a man walks by at the very
next minute, it could advertise shaving cream instead. Optical sensors
mounted on digital signages send real-time pixel data to a Intel
developed algorithm, which analyses this data to detect if the pixels
form a human face along with other features like gender, age and
attention span, all in realtime.
Intel is building these
algorithms that let advertisers and retailers cut through the clamour
of generic ads and reach out to consumers more effectively through
targeted personalised content. And not only Intel, Silicon Valley's
other hi-tech companies like Cisco and
Yahoo could be known for their
advertising services also pretty soon.
"We can create a technology to objectively measure audience. This
increases the return on investments for creating the content," says Joe
Jensen, general manager of Intel's Embedded Computing Division. The
global digital signage -- which Jensen says will overtake banners and
posters -- market may grow from $1.3 billion in 2010 to a $4.5 billion
by 2016.
Cisco's Videoscape architecture offers cloud-based ad
insertion for next-generation video formats. "By 2013, we expect
service providers will be delivering ads within both linear and
on-demand content as well as within interactive elements. Cisco's goal
is to enable them to insert ads into video streams along with device
interactivity regardless of the differences in video formats," says Ben
Hollin, senior manager, IP Video Solutions Strategy and Business
Developments at Cisco Systems.
High-technology solutions that help targeting could extract a 50%
premium in cost per thousand views over less direct methods. They are
also becoming vital as traditional media goes hi-tech, net advertising
becomes measurable and personalised, and internet connected devices
proliferate. Television is merging with the Net, billboards are
becoming interactive and Net-linked devices will reach the 1-trillion
mark by 2013 from 35 billion in 2010. And with 200 million mobile clips
streaming on YouTube each day, it is natural that advertising services
are so important for Valley's tech companies -- and startups too.
"Some platforms even allow users to opt in or out of ads with history
stored in cookies, account data and social profiles. Now, consumer
advertising on all platforms is headed in that direction," says
Sam Rosen a senior analyst at technology consultancy ABI Research.
Yahoo, with its strong online media presence, has a few solutions. Over
a million use the firm's Connected TV experience each month to access
Internet and video content from over 180 TV apps. And Yahoo's IntoNow
mobile solution uses the proprietary SoundPrint audio fingerprinting
techto identify what shows people are watching, down to the details.
"For an advertiser, it's a way to turn their TV buys from a brand
experience into a n actionable one," said an Yahoo spokesperson.
Valley startups are not to be left behind. San Francisco-based Flingo's
SyncApps platform lets advertisers make one-way broadcast content more
engaging. And Vidillion is building an interactive TV ad network, which
gives marketers a one-stop shop to reach users.