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US firm BigBand Networks has launched a new IP-based targeted advertising application featuring its latest and greatest innovation for targeted advertising on digital TV services - virtual zoning capabilities.

The new technique enables service providers to deliver adverts on their TV service based on a selection of targeting criteria, including traditional ad zones, groups of devices based on demographics, or geographical areas down to zip+4 codes. A virtual zone is described as a clustering of subscribers that does not have to be tied to fixed geographical boundaries, or constrained by access network topology.

The new network-based application is part of the BigBand Media Services Platform (MSP) and allows ad delivery to be verified by the service provider's network. It integrates with existing back-office systems and is claimed to "dramatically" reduce the bandwidth necessary to deliver both zoned and targeted advertising.

A recent study by Parks Associates predicts that advanced TV advertising revenues will drive pay-TV revenues to increase from US$ 28bn in 2011 to US$ 35bn by 2015.

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