Commentary

Future Tools: Virtual Product Placement

If Princeton Video has its way, media buyers will have more places to run ads during sporting events. In fact, you might be able to consider an entire game as a media opportunity. Virtually placed ads from the New Jersey–based technology provider can dictate what kinds of ads or logos viewers see as well as when and where they see them. The technology allows TV viewers to see an image in a location that may not be possible for a physical ad. Much of this is made possible through PVI’s relationships with major TV networks and sporting leagues. For example, people watching the Florida Marlins play the New York Mets can see a Coca-Cola ad on the field, on the first base line, or some other place in the stadium where a physical ad could not be placed.

Geo-targeting is also possible. Viewers in Florida can see a Bell South ad on the field or another relevant location, while people in New York might see a Verizon ad or logo. PVI also has the ability to add color or animation to an ad. All of this is done using PVI’s patented Line Video Insertion, or L-VIS™ technology, which essentially inserts an image or animation into an area that only a TV viewer can see.

“These ads are fun and come up at places and times during an event that have a high impact due to the ‘surprise’ effect,” says Roberto Sonabend, PVI’s co-CEO. “In a hockey game you can now see an animated projection on a glass barrier, or in a baseball game you don’t just have to see a sign behind the batter; now you can have it in other locations. We do it in such a way that is well integrated with the program.”

Placement is not confined to sports programming. PVI is now negotiating with TV networks and even movie studios to virtually place advertisers’ products. For example, the next time someone watches Friends they may see Ross with a box of Oreos on the table — without the cookie maker’s having had to work out a special product placement deal. Media buyers will also have the ability to do a tie-in with the programming, so viewers may actually see a 30-second spot for Oreos right before or after they see them on the table.

“When you buy a product placement in a TV series, you take a risk,” says Sonabend. “You don’t know what the ratings will be. With this technology you can decrease or increase exposure. Mattel asked us to do some product placement in some programming during the Christmas season. They originally sent us 20 different products to promote throughout the season. Two days after they went on air they said they wanted to just show Barbie, and we were able to do it.”

For the most part, though, PVI is more of a technology provider than an ad placement agent. Media buyers need to go through salespeople at the networks, as they normally would. PVI currently has relationships to use its technology on CBS sports, news, and entertainment; ABC Sports; ESPN; and Cablevision channels such as MSG, Bravo, Univision, and Telemundo. For international distribution, however, buyers can go directly through PVI.

PVI VP of business development Sam McCleery did not give specific numbers, but says placement costs are “typically structured like a 30-second spot.” He also said, as an example, that in a baseball game, a half inning of PVI-powered signage can be equivalent to a 30-second spot. Ultimately, the network decides.

“You can look at it like this,” says Sonabend. “In a typical buy you may have one to five spots; not all of them will air. With virtual advertising, it will be there.”

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