Microsoft Uses Predictive to Target TV

Microsoft will use Predictive Networks’ targeted advertising software in its TV

Predictive’s “Digital Silhouette” technology tracks a viewers’ habits (without collecting or storing personal information) then delivers pitches based on their
preferences. The Cambridge, Mass., firm will also provide scheduling, research and delivery technology to Microsoft.

The companies plan to demonstrate their integrated products at the National Cable and Television Association convention, to be held in New Orleans in May.

“Microsoft . . . has demonstrated a clear vision and commitment to bring innovative products to consumers in order to make TV and all media more entertaining and
useful,” said Devin Hosea, Predictive’s founder and president.

The deal with the Redmond, Wash., giant, could be significant for 2-year-old Predictive, which already has partnerships with related players in the space including
Akamai, AT&T Worldnet Service, OpenTV and NetRatings.

“Predictive Networks’ . . . technology and expertise needed to make personalization seamless for the consumer, while enabling incremental revenue-generating
capabilities for network operators,” said Andy Beers, a Microsoft TV product manager.

Examples of “revenue generating capabilities” include better response rates for video-on-demand and product sales through TV, or “t-commerce.”

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