Interactive digital media is the wave of the future. InStream Media, LLC’s has created a new advertising methodology for digital media that is non-intrusive interactive, consumer initiated, context based, with real time feedback to the advertiser, in effect the next generation product placement that provides true interactive digital advertising.
Today’s advertising market is faced with the following problems:
- A declining use of traditional TV and dilution of advertising distribution channels due to the Internet, mobile networking, video games, and instant messaging.
- Consumers skipping ads via TiVo, Ad Zapper, software filters, fast forwarding etc.
- No real time feedback to advertisers and the inability to directly determine/measure interest or ROI from a particular ad, which has been a long standing issue..
InStream’s product - an advanced advertising paradigm - provides the solution. How it works:
- Context related: Viewers see an object or item (e.g., car) they like in the video/broadcast show.
- Interactive/Consumer initiated: Viewers click on the item and related information will be sent to their e-mail or cell phone or displayed online in a sidebar with no interruption to the movie/show- noninvasive.
- The delivered ad is related to the product of interest which is sent to cell phone or e-mail and includes coupons, product availability and locations, costs, etc.
- Product sponsors simultaneously receive e-mail notification of consumer interest – providing instant feedback with measurable information for interest/ROI.
- Currently, no product embeds advertisement directly into content like InStream’s method
Advertiser charges will be based on up front fee per product, and a per click fee.
InStream’s product is disruptive – it creates a new paradigm for advertising. Internet advertising generated around $16 billion for 2006 and consumer advertisers are the largest category of internet ad spending and Broadcasting & Cable TV advertising is expected to grow to $156.8 billion by end of 2010. Source: the “Internet Advertising Revenue Report” by the Internet Advertising Bureau (IAB), and Price Waterhouse Coopers.
Opportunities include:
- Streaming video over the Internet
- Streaming video over cellular networks (mobile phones)
- IPTV
- Cable TV
- Broadcast TV
- DVD’s
The timing is right; advertisers are actively seeking alternatives – next generation of product placement.
- Initial focus:
- Digital Media: Streaming video on the Internet
- Immediate use of current product version.
- Next focus:
- Cellular Networks
- Cable/Satellite TV
- For set-top based TV enable device (e.g., remote control) with “click capability”
- Broadcast TV
- Leverage relationships started with streaming video.
- Penetrate market through:
- Advertising agencies
- Content providers & distributors of streaming video on the internet
- Television networks, which are making use of the Internet for shows and are looking for new incentives for their sponsors to advertise in this space.
- Future Directions:
- Streaming video over cellular networks (mobile phones – e.g., iPhone – once the market proves acceptance)
- IPTV
- DVD's
InStream’s innovative technology uses its software derived from stegonographic methods to embed advertisements. The technology avoids any distortion to the video stream and maintains the original quality. InStream inventors have three patents pending – two U.S. and one PCT. For Internet delivery it uses a popular commercially available software platform to support a wide variety of video formats. - Distribution Agreement and License Agreement with BIG Interactive, PTE, LTD-Singapore
- Three Patents Pending:
- U.S. patent number: 60/889,629 – “Data Hiding Based Messages and Advertisements”
- It’s associated PCT application.
- “A Software Tool for Interactive Messages and Advertising.”
- Product for advertisement embedding and decoding in digital video streaming completed.
- Interactive demo avalable on Internet web site.
- In discussion with Major (TV) Broadcast Companies
- Actively seeking investment.
From a market perspective, most of the companies identified that are offering interactive digital advertising are using invasive technologies e.g., the video stops playing and freezes.
In contrast to the competition, InStream provides relevant embedded ad information within the context of the video scene; and immediate feedback to advertisers. InStream is an interactive, non-invasive, pull technology. Seeking: $5M
Current Investor: Stevens Institute of Technology. InStream Media, a Limited Liability Corporation (LLC), was formed in December 2006 by the VP of the Office of University Research and Enterprise Development (UR&ED), Dr. Helena Wisniewski, along with the faculty co-founders: Dr. R. Chandramouli and Dr. K.P. Subbalakshmi. The stegonography based technology was initially developed at Stevens for homeland security applications. The evolution to advertising came as a result of brainstorming among the inventors. The company was founded to commercialize and market the new advertising approach for digital media. |
