Since 1997, PVIs have appeared on television, mostly on sporting events where the images look real but are computer generated and aren’t really onsite. The same type of image will appear online, embedded in streams sent to RealPlayers by PVI’s software. Still images and simple animations can run, according to Brown Williams, PVI’s chairman and founder.
Users will receive shows encoded with PVI software. They will be asked if they want to make the shows interactive, and if they say yes, they will be able to receive the ads, although they will have the ability to turn off the iPoint plug-in.
The advertising will be targeted to individuals and demographic groups, with PVI working with companies like DoubleClick to target the ads, much as they do banner ads. “We don’t have the databases that identify individual users, so we’ll partner with companies in the business,” Williams says.
PVI works with broadcasters, cutting deals to alter their shows with advertising images in exchange for a cut of the proceeds. RealNetworks gets none of the ad revenue, Williams says, nor does PVI pay RealNetworks a fee. “They’re like the phone company, they do the transmission,” he says. “RealNetworks is eager to participate, because having software like PVI helps them sell media players. It gives them more pizzazz.” RealNetworks was unavailable for comment.
The advertising is like product placement advertising, with the images appearing in different places in the shows, from sideboards in sports shows to the actual drama of a sitcom, such as a can of Coke appearing on a table. When asked how PVI could alter the content of the shows that way, Williams said it was only done with the permission of the shows’ producers who PVI pays for installing the images.
Only RealNetworks players will be used at first. “We could download the player without them, but users have more confidence in their players,” Williams says. “It lends credibility to our product.” RealNetworks has 215 million Realplayer users who will be able to receive the ads.
PVI is developing software for other players, including Windows Media and Apple QuickTime, but they aren’t available yet.
Major advertisers such as Coke, Pepsi, and Toyota have used PVI’s television service, but none has signed up for the web service yet. “It’s an educational process,” Williams says, indicating clients and agencies will have to learn about it before they buy in. It’s expected to debut late this year, possibly in association with the introduction of a new version of the Realplayer.
Williams says selling advertising for it will be similar to selling TV time, in that it will reach certain demographics, like TV ads do. But “it will be a little more direct than TV, with better targeting capabilities.” The other difference is that PVI pays TV broadcasters and producers for running TV ads, but will only pay the producers for iPoint.