Interactive advertising is an idea that opens up a 2-way connection between advertiser and consumer. We all know that online interactive advertising has grown by leaps and bounds over the last 10 years. However, that growth may be crude when compared to what could happen after interactivity is added to television, phones, and other devices. OpenTV, the acquirer of the last company I built, is in that field of expertise.

One thing I focus on is the lack of tools for both the buyer and sellers to make this market function properly. There is no future DoubleClick yet in this field and existing Internet tools are not up to the job.

With that said, tools and middleware available for the interactive advertising industry are set to take off in the next five years, according to Acacia Research Group. This is a belief that I share, so I thought it would be good to share some of their information with you.

(excerpts from ClickZ, written by Enid Burns)

Tool and middleware vendors offering artificial intelligence and other software applications are expected to see sales to the interactive advertising industry reach $190 million by 2010. Sales for 2005 are recorded at just $19.6 million, according to the report.

... Such applications are already used in video games, and in-game advertising. The offering creates possibilities for the Internet, mobile applications and other platforms, though each medium creates its own set of challenges...

"To deploy content across operators and handsets, you need middleware to reach all users," said [Christine Arrington, senior analyst at Acacia]

The tools and middleware that will aid advertising and marketing across multiple interactive channels is still in its early stages. Tool and middleware providers require some marketing of their own to be recognized by the advertising industry.

"There's a world out there that advertisers can take advantage of, especially with the growth of broadband," said Arrington. "It's going to take toolmakers proving to advertisers that the tools they have can make it easier to develop interactive advertising."

The report was compiled with primary research via interviews and surveys with product vendors; technology suppliers; professional organizations and government agencies; distributors and end users within the market where possible. Forecasts were then made based on the survey and interview findings.

For anyone planning on competing in this arena, the report is a must. However it is costly. If you want that report click here and mention that Martino Mingione refered you to get a 10% discount.