http://www.nytimes.com/2008/03/10/business/media/10cable.html?ref=technology

This New York Times article discusses how the 6 largest cable companies are trying very hard to increase advertising profits from television. Television advertisement has been fighting a losing battle against internet advertising (cough cough Google). However, cable has finally decided to take the project seriously. The project will collect data about viewer’s preference of shows from set top boxes. This will help to custom tailor advertisements to consumers. “After all, a bachelor living in a Manhattan high-rise surely does not need a pickup truck or a box of diapers. And a retiree living in Florida probably does not drink much Red Bull or venture online to find a date,” says the article.

This form of advertisement seems much more responsive than the keyword sale of advertisements, mainly because the viewers preferences and habits can be analyzed. For example, if a teenage viewer has a weekly show that he or she watches religiously, the time slots for commercials during that show can be priced higher for advertisers trying to reach a younger crowd. If the cable firms are able to fully implement this program, then a lot of advertising dollars will shift away from the Internet and back into television.

This will also create a slight controversy about privacy issues, however it shouldn’t be controversial enough for the program to be pulled.