Broadcasters see benefits of targeted advertising

The largest orders yet for Channelmatic/LIMT's automated advert insert system puts the focus on the competitive advantage to be gained though local television advertising. This is possible through the company's technical breakthrough in digital video which allows the insertion of locally-oriented advertisements into national terrestrial and satellite television channels.
In essence, the technology is based on leading edge MPEG2 digital communications built into a local video server. The equipment can be mounted on a terrestrial television mast or in the cable networks' head ends.
Two US cable operators, one Swedish, one Finnish and one Spanish broadcaster have purchased the company's leading edge technology. National Cable Communications'(NCC) Detroit Interconnect with more than 1 million subscribers has bought a 256 channel system for multi-channel automation. This enables this cable broadcaster to control advertising distribution, insertions and delivery geared to specific demographics in each of four zones.

Integrated functions
The system is based on Channelmatic/LIMT's Cue Signal Multiplexertechnology. With it, NCC has not only real-time traffic interface and zoning for advertisers but also all functions are integrated with traffic and billing so that NCC can provide a single invoice and one affidavit to its advertisers.
Ken Little, NCC's Vice President of the Interconnect Division says, "Channelmatic/LIMT proved to be the best choice for us. Because of its unique network control architecture, we are able to operate the 13 head-ends without having to install complete insertions systems in each. This saved us a lot of money, greatly reduced our equipment inventory and significantly simplified our operation."
Broadcasters with smaller audiences can also target advertising more effectively. AdVision,another US company, is able to target its advertising to 80,000 subscribers using Channelmatic/LIMT's Digital Lite ad insertion system.
Bob Fahner, AdVision's general manager says, "it proved to be the most cost effective choice for us. Not only in terms of base price, but also because we were able to upgrade and still use some of our existing equipment."
Similar enthusiasm has been expressed by the European purchaser of the Channelmatic/LIMT's systems, TV4 Stockholm and PTV4, Helsinki Media's new satellite channel. For TV4, the new installation has been achieved with the total integration with its existing automation system and with LAN International's traffic and billing software. It will be used for distribution and insertion of digitized local commercials in the national programms and split Sweden in six areas using 16 terrestrial masts.

Power of targeting
Locally-focused advertising is seen as a strong competitor to such advertising in the local and regional press. Experience in the USA has shown that more than 55 per cent of TV advertising there is of a local nature and the potential throughout Europe is of a similar order. This technology allows broadcasters to split commercial air time among a number of advertisers so increasing advertising revenue while keeping within existing concession constraints. Such a capability is of particular significance during prime time viewing.
Channelmatic/LIMT as it stands today is result of a merger between US-based Channelmatic and LIMT AB of Sweden last spring. The combined company is a leading manufacturer of television automation systems for analogue and digital ad insertion, custom switching and programme playback coupled with leading edge video server technology for broadcast and cable television.
Today there are around 100 employees and the company has sales and support offices throughout Europe, the US, Latin America, Korea, New Zealand, Australia and Canada.

For more information contact:
Goeran Waerner, Marketing Director, Channelmatic/LIMT
Slalomvaegen 9
S-133 33 Saltsjoebaden
Sweden
Tel:+46 8 717 1502
Fax:+46 8 717 2502