Thanks to a trove of data collected by satellite provider DIRECTV (NASDAQ:DTV) and other third parties, companies will now have the ability to display commercials to households more inclined to buy their product.
The technology, knows as dynamic advertising, will enable Toyota Motor Corporation (NYSE:TM) to show their new electric RAV4 to eco-friendly consumers in the market for a new vehicle, and allow Kellogg Company (NYSE:K)’s to target weight-conscience women for ads selling their Special K cereal.
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DirecTV hires marketing-data firms that compile consumer information from credit cards and other sources to identify, for instance, Spanish speakers…DirecTV can transmit the ads only to subscribers who meet the criteria and live in the targeted cities.
On the line is a TV ad industry worth $73 billion annually, of which DIRECTV (NASDAQ:DTV) will certainly look to increase their share. According to the company’s executive vice president and chief revenue officer, Paul Guyardo, their inventory of ads are now worth 4 to 5 times what they would normally fetch. Adding to the situation is the downward trend in cable subscription as “cord-cutters” and “cord-nevers” turn to streaming services in lieu of satellite or cable.
Intel is also joining the space with plans to launch a set-top box product this year. The technology employed by the chip maker is even more
invasive thorough at deducing consumer preferences. Their plans call for companies to be able to bid on ads in real time and “gain feedback on demographics, behavior and location.”
Advertisers would have the ability to target individual consumers as they sit in front of their screens, using a profile based on viewing habits, services purchased and billing information like ZIP Codes.
So much for heading to your living room for a little relaxation and privacy.