By 2005, Jupiter predicts, interactive TV shopping revenues will reach $4.3 billion and iTV shopping will account for 44% of all TV-based shopping. Despite this opportunity, iTV advertising will not be big business as the market and technology will be fragmented in the short to medium term. Advertising revenue from iTV, Jupiter forecast, will account for only 7% of all US advertising by 2005.
“Even though our research shows that there’s money to be made in the iTV space, carriers, programmers, advertisers and merchants are struggling with models to justify iTV deployment,” said David Card, Jupiter senior analyst. “Outside of video-on-demand, the new business that iTV brings will divide evenly between shopping and advertisements. However, advertising won’t account for more revenues than shopping does until 2005, due in part to current US economic conditions, Internet advertising’s seeming ineffectiveness and the lack of a common national iTV technology platform.”
2005 iTV Revenue Forecast Breakdown From Jupiter
| iTV Shopping Programmes |
$3.4 billion |
| iTV Malls |
$0.7 billion |
| Integrated iTV Shopping |
$0.3 billon |
| Total iTV Revenue |
$4.5 billion |
