SOURCE: Backchannelmedia

January 24, 2008 07:36 ET

New Research Shows Television Viewers Ready for New TV Ad and Content Formats

Results Show That an Overwhelming 40 Percent of Consumers Would Use Backchannelmedia's Converged Solution for Television and the Internet

BOSTON, MA--(Marketwire - January 24, 2008) - U.S. television viewers are ready and willing to jump into the next generation of television advertising and content delivery, according to a recent survey by Backchannelmedia (www.backchannelmedia.com), a Boston-based digital television ad serving and response capture company. The survey, administered by The Parthenon Group (www.parthenon.com), a Boston-based strategic advisory firm, found that 40 percent of respondents enthusiastically supported an interactive television offering that does not interrupt the viewing experience and employs 'one-click' technology using existing TV remotes.

The recently completed survey includes responses from 2,288 U.S. consumers. Respondents were asked questions regarding television viewing habits, adoption and use of TV technologies including VOD and DVR, comfort with conducting financial transactions over the Internet and reactions to other forms of enhanced television including snipes, telescoping, toll-free numbers and websites displayed in commercials. The respondents were then shown various examples of Backchannelmedia's opt-in TV technology and were asked how likely they would be to use the new features.

The survey response to the Backchannelmedia system shows:

--  60 percent of respondents will click on TV advertisements to send
    coupons to their email account or Internet portal
    
--  40 percent of respondents express interest in Backchannelmedia's opt-
    in service
    
--  36 percent of respondents indicate a preference for interactive ads
    over traditional television ads
    
--  23 percent of respondents say they would be very or extremely likely
    to use Backchannelmedia's interactive TV advertising model, which projects
    close to 43 million early adopters out of the 196 million U.S. daily
    television viewers (Nielsen Media Research)
    

Respondent data shows:

--  85 percent of VOD users use the service once or more per day
    
--  72 percent of consumers skip through ads in DVR recorded programs
    
--  63 percent of consumers surf the Internet when watching television
    
--  60 percent of consumers do not visit or rarely visit web sites they
    see advertised on TV
    

Current online transaction trends from the survey:

--  59 percent of respondents make between 1 and 3 online purchases each
    month
    
--  56 percent of respondents have automatic deductions scheduled from
    their bank account
    

"Backchannelmedia's opt-in solution was developed over a ten year period of focused research in preparation for the digital TV transition in 2009," said Michael Kokernak, Co-CEO of Backchannelmedia and the primary inventor of the system. "It is clear from the results that consumers are ready for a deeper experience with digital television. Backchannelmedia's technology, coupled with dropping prices for plasma televisions and increased competition among multichannel video providers, will continue to fuel the sixty year love affair that Americans have with television."

For a copy of the 47 page Backchannelmedia Consumer Study report please contact Backchannelmedia.

About Backchannelmedia Inc.

Boston-based Backchannelmedia Inc. (www.backchannelmedia.com) was founded in 2000 with the belief that television advertising should become accountable. Backchannelmedia has created an interactive TV advertising model that provides better targeting and immediate consumer feedback to a message. Both make TV a far more attractive selling tool.

Backchannelmedia's patent-pending opt-in technology allows consumers, with one click of their existing remote control, to forward product or content interests seen on television into an e-commerce site hosted on the Internet. For example, while viewing a popular recording artist perform on TV, a viewer could forward a link to download the song from a digital music site.

Backchannelmedia's opt-in solution, which respondents value as a more convenient means of accessing information, answers consumers concerns for increased online privacy by extending controls to the consumer for the television experience.

Backchannelmedia is currently preparing for a second quarter 2008 roll out of a complete "continuous loop" system that merges the direct marketing, Internet advertising, and television advertising industries into one platform driven by automated, optimized targeting and actual television consumer response results. Backchannelmedia's patent pending opt-in approach to video and advertising delivery can be deployed in consumer electronics equipment, television sets, over the air receivers, cable head-ends, switched digital video and network DVR technologies, direct broadcast providers, as well as a multitude of devices and delivery providers, thus providing advertisers and content companies with a rich experience mirroring the current video distribution eco-system of the United States.

Backchannelmedia Research (http://research.backchannelmedia.com/) is the first generation "TV click to the web" media buying and analyzing software application and it currently offers media planners the most comprehensive, free Web-based planning tool available today with approximately 450,000 monthly visitors accessing over 1.5 Million pages of television research on a monthly basis. Since 2004, the Company has published "Backchannelmedia Connected" (http://www.backchannelmedia.com/newsletter/issues/), a 22,000 subscriber daily industry newsletter tracking the digital conversion and television advertising in general.

Backchannelmedia anticipates launching a closed over-the air-trial of the opt-in technology through a limited number of digital television stations and content providers during the second quarter of 2008.

The company is privately funded with $9.5 million raised to date through private investors. For more information, please visit www.backchannelmedia.com.

About The Parthenon Group

The Parthenon Group (www.parthenon.com) is a strategic advisory firm working closely with CEOs and business leaders worldwide. Parthenon serves its clients with a steadfast commitment to life-long partnerships; a high-impact, customized approach; and a willingness to share risk.

Parthenon has its offices in Boston, San Francisco, London, and Mumbai.

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