Tim, I think this is just a great idea for your 3rd generation tv set in 2015.
-Philippe

[Reproduced from Venture Beat]
Microsoft Kinect’s NUads is what the TV industry needs to survive the future

May 16, 2012 9:00 AM 
Tom Cheredar

What if your ads watched you while you were watching them? Microsoft is set to debut its new motion-sensitive advertising project NUads next month, which the company says will revamp the TV ad industry by doing just that.

The company’s natural user-interface ads, or NUads, use Xbox Kinect’s motion sensing technology to transform TV commercials into something you can actively participate in with minimal effort. For instance, people can vote in real-time for a product or service by waving their hand, schedule a calendar reminder for an upcoming TV show, or say “Xbox Near Me” to see a map of locations for whatever retail store just advertised to them. Microsoft first showed off its NUads project at the Cannes International Advertising Festival last June.

“During the Super Bowl, you’re watching TV, some great ads pop up,” said Microsoft manager Lyn Watts in a recent Cnet report. “You say something like, ‘Xbox share,’ it’ll share automatically, on Facebook or Twitter, whatever you like. Advertisers are really impressed by this.”

Essentially, the NUads platform wants to start producing commercials that “watch you” while your watching them. In doing so, Microsoft thinks it can lure people away from DVR devices that permit skipping through the commercial breaks that play throughout a TV show. Satellite television service provider Dish Network is even making new DVR boxes (the appropriately named “Hopper” box)  that automatically “hops” through those commercials.

The NUads launch couldn’t have come at a better time for the broadcast television industry, which has recently spoken out about how traditional advertising is failing to keep up with audience behavior.

Monday, Chairman of NBC Broadcasting Ted Harbert said “we can no longer ignore time-shifting” within the business model to drive ad revenue. The problem with “time-shifted” (a.k.a. DVR) devices is that the industry doesn’t have enough control to make sure those commercials will play for an audience the way they do for live broadcasting. With NUads, there might be a compelling reason for people to watch commercials willingly and prevent them from skipping through.

Harbert also criticized the industry’s standard for content ratings through Nielsen, saying  “We’re participating in many initiatives to try and crack the measurement code because we just can’t wait — and wait some more — for Nielsen to do it.” This puts Microsoft as well as its new NUads platform in the perfect position to step up.

Using the Kinect device, NUads have a far greater means of measuring how people react to a piece of content as well as advertising. It can detect a person’s facial expressions, record/sense audio reactions, and even transmit pieces of video. If done right, Microsoft developers could anonymize this kind of data through the Kinect SDK, and give them an incentive to make sense of this information for advertisers. Basically, a person’s unique private data wouldn’t be shared, but their collective reactions could be turned into important analytics. For example, a laundry detergent commercial that evokes an emotional response in the form of “aww” along with positive facial expressions — not, “Sally from 505 Nowhere Street laughed and cooed obnoxiously at the puppy.”

Microsoft’s Watts did, however, warn all developers to stay mindful of potential privacy intrusion features by adding disclosure statements when appropriate as well as knowing what you’ll do with the data before its collected.

Cnet’s report indicated the NUads interactive advertising platform will launch in late Spring. My guess is that Microsoft will probably coincide the launch with its Xbox announcements at the E3 event in June.

At NAB two weeks ago, it was clear that broadcasters view internet radio as complementary to their broadcast offering. Jelli is an interesting approach.

[Reproduced from pandodaily/Erin Griffith]
Pandora Has a Monetization Problem That Streaming Hybrid Jelli Cleverly Solves

Yes, it’s incredible that Pandora has grabbed more than 4% (by Pandora’s metrics) of terrestrial radio listening. But that took 12 years, and even with listening hours growing each quarter, the company doesn’t have enough advertisers on board to turn a profit. Because of that, it is in a desperate fight to draw ad dollars from traditional radio. As of now, the score is approximately $17 billion (broadcast radio) to $800 million (internet radio).

The other issue Pandora has is one of bandwidth. The majority of the company’s listening hours now come from mobile devices, but if even half of the traditional radio listeners switched over to mobile streaming for a few minutes, the entire network would crash. Put simply, terrestrial radio has become an incredibly outdated way to advertise–it’s fragmented and offers zero targeting (beyond region) and zero ways to measure effectiveness. But it’s still the simplest, cheapest most efficient way to broadcast.

Over the summer, I came across a company taking a unique hybrid approach to this problem. It’s a radio startup called Jelli. The company installs a server in a local radio station’s broadcast tower. It then begins broadcasting music on new radio stations that require no DJ, infrastructure, or ad sales team. Programming is completely determined by voting from Jelli users. The site and app are a bit like Turntable.fm with its elements of group listening, voting, and chat. But they’re played via broadcast, and the stations are accessible from a radio, web or a smartphone, founder Michael Dougherty explained.

Today the company announced an important element to its business model: Real time ads. They’re unique in that the feedback loop on Jelli is closed. Meaning, if there’s a call to action on a traditional spot radio ad, who knows if it is effective? Who knows who even heard it? But if a Jelli ad says, “download our app now,” with a display ad and audio messaging, Jelli can actually tell advertisers that 5% of viewers downloaded that app. Jelli’s new ads feature anything from store finders for large retailers to local daily deals.