AdTech: Interactive TV Still Limited By Bandwidth

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NEW YORK - This year's AdTech trade show features many companies that are introducing products to integrate the television with the Internet.


Interactive television promises to allow direct response marketers to sell products without the need for a toll-free number, but its deployment in the United States has been stagnant because of technical limitations and high costs.


"Everyone is hungry for more bandwidth," said Kyle Ringo, an executive at Encoding.com, Seattle. "Once we have wider pipes, interactive television becomes a greater possibility."


His company has a new service called Rich Media Advertising Service to allow interactive advertising agencies to include video and sound in Internet campaigns. The company processes video and audio into a format that can be delivered through the Internet.


"The service was created basically because there was a need for it," Ringo said. Once an advertisement is prepared for Internet delivery, it may be downloaded by a Web user whose browser is equipped with Apple QuickTime, RealAudio, Microsoft Windows Media or Liquid Audio.
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