NDS Dynamic™ to Deliver Targeted TV Ads, Part of a Suite of Solutions to Revolutionise Pay TV Advertising

LONDON, UK – IBC Hall 1, Stand A71 — NDS Group plc (NASDAQ: NNDS), the leading provider of technology solutions for digital pay-TV, today announced the launch of its next-generation TV advertising solution suite. NDS Dynamic™ enables pay-TV operators to improve existing advertising sales and develop new advertising models using accurate viewing analysis, audience targeting and interactive advertising.

For the first time, TV operators can deploy a single integrated system that allows them to identify target audiences, engage with them through interactive advertising and instantly measure the impact of the campaigns. With NDS Dynamic, advertisers can create campaigns that deliver broadcast and interactive ads targeted to specific audience profiles with rich set-top box (STB) measurement data to support their decision-making.

“TV advertising has to change. The fragmentation of media and the growth of online advertising led us to develop these new solutions to help TV advertising evolve and grow in relevance,” said Dr Abe Peled, Chairman and CEO of NDS. “NDS Dynamic is the result of extensive research and collaboration with our customers as well as the advertising industry.”

The NDS Dynamic suite has three solutions:

• Audience Measurement – this system measures every second of the viewing experience and monitors audience interaction with adverts. It tracks live TV viewing, time shifted viewing on Digital Video Recorders (DVR) or Video on Demand (VOD), as well as the use of Electronic Prograrm Guide (EPG) and interactive applications.
• Targeted Advertising – this solution replaces broadcast ads with targeted advertisements according to household or audience profiles, location and other factors. Advertising options include both video and graphic banner ads. Operators can continue to sell ads based on the same terms and demographic data as before, but with the new ability to segment the audience for every spot. Alternatively operators can generate premium advertising fees from selling to new targeted audiences.
• Interactive Advertising – NDS offers viewers the ability to interact with ads in various formats. These include telescopic ads that allow linking with longer format content; EPG ads that link to advertorial content; dedicated advertiser location ads that allow access to a product mini site; and request for information ads that allow viewers to contact advertisers with requests for more information or samples.

While NDS Dynamic allows operators to strengthen their relationship with their advertisers, agencies and ad funded channels, viewers also benefit by seeing advertising that is more relevant to them and more engaging than has been previously possible.

TV operators who do not sell advertising directly can also benefit from NDS Dynamic by offering targeting and measurement capabilities to third party channels carried on their platforms.

NDS Dynamic will be demonstrated for the first time at IBC 2008 in Amsterdam (Hall 1, Stand A71). The demonstration will feature a full targeted ad cycle, highlighting how targeting decisions are made, the execution of these decisions and the viewing measurement to facilitate and improve future targeting. The demo will also show how NDS Dynamic can be used to create new advertising opportunities that take advantage of the storage capacity on DVRs.