Netpulse Inc., which operates a place-based video network distributed across stationary exercise equipment in health clubs nationwide, this morning announced a series of deals that will integrate its
software and content and ad serving technology directly through the manufacturers of leading fitness equipment. The deals ensure Netpulse will accelerate its distribution, effectively making every new
piece of exercise equipment - everything from treadmills to elliptical trainers - shipped an affiliate of its network.
The deals, which were struck Friday during the Health, Racquet & Sportsclub
Association Trade Show in San Francisco, were with some of the biggest manufacturers, including companies such as Life Fitness, Tehnogym, Matrix Fitness, and Woodway, which in total represent more
than 70% of all fitness equipment sold.
The deals are a significant part of Netpulse's strategy to build a digital network that reaches exercise-minded consumers whenever and wherever they are
interacting with equipment, says CEO Bryan Arp.
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"Now wherever a consumer goes, all they have to do is log in and we can deliver their favorite TV shows, music videos and personal fitness
history," he says.
Significantly for Madison Avenue, Netpulse can also deliver advertising that is suited specifically for that consumer based on a variety of information, including their
personal registration data, and their programming and exercise history.
That makes Netpulse something special for TV advertisers, says Mitch Oscar, the executive vice president-televisual
applications with Havas' MPG, who has been working closely with Netpulse to place "addressable" and "geo-targeted" TV ads for the agencies clients. ,p> "Most importantly, it is the only addressable
TV platform out there that offers video addressability with interactive TV applications, ie., request for interaction," says Oscar, noting that other big players are still only testing the
long-awaited concept that is expected to give TV the kind of pin-point targeting and interactivity as online media.
Oscar said companies such as Invidi Technologies and Visible World have struck
deals to deploy addressable TV advertising via cable operators such as Comcast and Cablevision Systems, while other companies like Microsoft's Navic and cable industry venture Canoe Ventures are
deploying interactive banner addressability, but he that at best, those systems only target households, while Netpulse can reach individuals based on their unique personal history.
To date, he
says MPG has placed addressable TV advertising deals for two of its clients - Tag Heuer and DKNY - and that it also helped bring ABC digital network ABC Live Well into the system with specialized
content aimed at people who are exercising.
Netpulse's Arp cites another deal WPP's Kinetic recently placed for client Abbott Labs' EAS brand, which featured branded content featuring an athlete
performing "30 Sports in 30 Days." He says content, as well as advertising, can be custom tailored to match the unique lifestyle interests of people who routinely use exercise equipment, and that now
with the new "OEM" deal with manufacturers, their workout, content and advertising histories can follow them around wherever they work out.
Arp says this is possible, because every single piece
of equipment installed on its network can identify an individual user when they log-in, and it is immediately downloaded to that piece of equipment.
That enables the user to access their personal
workout history, as well as media content and advertising.
And if those personal data points weren't compelling enough, Arp says Netpulse also collects some potentially powerful biometric data
from its registered users, including the type of equipment they are exercising on, how long they exercise, the amount of calories they burn, and their hard rates on a second-by-second basis. He says
Netpulse hasn't figured out what to do with that data, or whether it might help marketers understand the mental or physical state consumers might be in while engaged in cardiovascular exercise, but
Madison Avenue currently is exploring all sorts of new methods of using biometric research to understand how consumers react physically, emotionally and cognitively to media.
In the short run,
the equipment manufacturers' deal will help Netpulse accelerate its deployment from a few million users monthly. The manufacturers covered in the agreement reach 70% of a market that is estimated to
reach 70% of the U.S. market for health club equipment.