News Brief

Interactive TV Gets Targeted Ads

WorldGate Communications, Inc., a provider of interactive television service deployed worldwide on both advanced analog and digital cable set-top converters, has outsourced its ad management and delivery to AdForce.

The agreement between AdForce and WorldGate will effectively give advertisers simultaneous access to the two most lucrative digital advertising media - TV and the Internet. Specifically, AdForce will provide WorldGate with campaign scheduling, profile-based targeting, ad delivery, tracking and reporting services.

Goldman Sachs has estimated that the typical U.S.-based cable operator will experience advertising/e-commerce revenues from iTV services that increase from $15 million in 2001 to $1 billion by 2008. In the U.S., where approximately 100 million households currently own televisions, 70% of which are already connected to cable, WorldGate believes its services will expand the number of households using the Internet and viewing online advertising.

WorldGate also believes consumers already connected to the Internet will be attracted to interactive cable TV, as it offers full-featured Internet functionality and content at a cost that is often lower than the monthly fee charged by traditional Internet Service Providers.