Interactive digital television advertising spend is likely to grow to €2bn in 2007 and, according to a report compiled by Forrester Research, some 60% of this will come from the UK.
Gambling is the most successful application of interactive television at the moment, capturing 61% of revenue. Forrester says that this is unlikely to become a huge industry because most countries in continental Europe have banned online gambling, with the exception of France and the Nordic countries.
Hellen Omwando, analyst at Forrester, said: "Only 200 interactive TV ads had run on BSkyB's platform by year-end 2002, but this was still the largest number of campaigns in Europe. So far, a complex set of variable costs and campaign process have foiled interactive ads -- low iDTV penetration, even in the UK, also leaves brand advertisers like Unilever reluctant to invest."
Interactive operators offering or planning to offer communications services such as email could be disappointed, with Forrester only estimating a collective turnover of €890m by 2007. Omwando said that SMS would drive communications revenue, taking 92% of the market by 2007, followed by email and instant messaging.
Forrester Research compiled the report after speaking with 32 iDTV operators, broadcasters and retailers, as well as 12 vendors selling iDTV technology.
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