The Associated Press: Cable's answer to online's ad success: targeting - 0 views
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Karl Wabst on 21 Apr 09You're watching Jon Stewart's "The Daily Show," when suddenly you see a commercial for the Mustang convertible you've been eyeing - with a special promotion from Ford, which knows you just ended your car lease. A button pops up on the screen. You click it with the remote and are asked whether you want more information about the car. You respond "yes." Days later, an information packet arrives at your home, the address on file with your cable company. This is the future of cable TV advertising: personal and targeted. Cable TV operators are taking a page from online advertising behemoths like Google Inc. to bring these so-called "addressable" ads onto the television. "It hasn't really been done on TV before," said Mike Eason, chief data officer of Canoe Ventures, a group formed by the nation's six largest cable operators to launch targeted and interactive ads on a national platform starting this summer. They're betting they can even one-up online ads because they also offer a full-screen experience - a car commercial plays much better on your TV than on your PC. As such, they hope to charge advertisers more. The stakes are high: Cable companies get only a small portion of the $182 billion North American advertising market. Eason said the cable operators, which sell local ads on networks like Comedy Central, get roughly 10 percent of the commercial time on those channels. With targeting, they are hoping to expand that. But they have to tread carefully. Privacy advocates worry the practice opens the door to unwanted tracking of viewing habits so ads can target consumers' likes or dislikes. They also fear it could lead to discrimination, such as poorer households getting ads for the worst auto-financing deals because they are deemed credit risks. "You've got to tell people you're doing it and you've got to give people a way to say no," said Pam Dixon, executive director of World Privacy Forum in Carlsbad, Calif. "Otherwise, it's just not fair."