Morten Andersen strode onto the field with an air of quiet confidence. The place-kicker for the Atlanta Falcons whispered some kindly encouragement to the football, stepped back, and calmly booted the game-winning field goal.

That kick, which sent the Falcons to their first-ever Super Bowl, was replayed half a dozen times on network television, much to the delight of stadium advertisers whose billboards were visible in the background.

Traditionally, Canadian advertisers have been unable to profit from such on-field heroics, since they lacked a presence in nfl stadiums. But that’s about to change, thanks to a new technology developed by Lawrenceville, n.j.-based Princeton Video Image (pvi). When the Super Bowl airs on Jan. 31, CanWest Global Communications will be the first Canadian broadcaster to employ live insertion technology, which will allow advertisers to insert ‘virtual’ billboards beside the uprights.

Global teased advertisers during the nfl divisional playoffs, when it inserted a virtual ‘Global blimp’ in the broadcast. The blimp, which appears to hover over the stadium, quickly grabbed the eyeballs of the advertising community.

‘I think it’s excellent,’ says Sunni Boot, president of Toronto-based media buying agency Optimedia. ‘Clients are looking to have their brand associated with the event in a very meaningful way. And I think they will go for it – we’re certainly looking at it very seriously.’

But in order to be effective, the advertising must be more than unobtrusive – it must appear to be part of the event itself. If it becomes distracting, Boot suggests, it could result in the twin banes of every advertiser – clutter and viewer annoyance.

Global has signed a one-game deal with pvi, after which they may decide to negotiate an extended contract. The system has already been used on a number of u.s. networks, including espn, abc, Fox, and cbs.

The insertions will be sold by quarters, says Ken Johnson, vice-president of marketing and sales with Global. So far, Budweiser, Ben-Gay and gm have committed to the virtual sponsorship. gm will sponsor both the first and fourth quarters, alternating between spots for the GMC Sierra pick-up and GM Goodwrench Service. Johnson would not disclose the cost of the virtual placements. Global charges $60,000 for a 30-second conventional timeslot on the Super Bowl.

‘Clients have already seen value in it,’ Johnson says. ‘It’s a whole new market, so there will be a demand issue. We’re all kind of feeling our way around it.’

Although Canadian advertisers will only be given goalpost adjacencies this year, Princeton can provide animated images, three-dimensional signs, and virtual flip cards, which make it appear as though fans are spelling the name of a product.

Certain things, however, remain sacrosanct. The nfl prohibits placing the virtual ads on the playing field. ‘It’s unlikely that you’ll see a dancing beer bottle in the end zone,’ laughs Lawrence Epstein, pvi’s chief financial officer. ‘But anything in the stands or beside the goalposts is usually approved.’

The technology also enables broadcasters to sell regionally. Although Global is selling its ad spots only to national sponsors for the time being, the broadcaster could conceivably insert different images for regional advertisers.

‘It could allow national broadcasters to repatriate their audiences,’ explains Boot. ‘In a hockey game, for example, the broadcaster can insert a virtual rinkboard over one that someone didn’t pay the television rights for.’

But the applications for this technology far exceed the arena of sports broadcasting. The virtual imaging also promises to revolutionize product placement. pvi has recently opened an in-house post-production facility that allows advertisers to place virtual products in pre-recorded television shows.

‘It creates a new revenue stream for syndicators,’ Epstein explains. ‘We now have the ability to insert a cereal box or a drink on a kitchen counter after a show has already been taped. And because it’s being done for syndication, it could be a Coke in the u.s., a Labatt’s in Canada, and a British beer in the u.k. – it can all be targeted by market.’

One of pvi’s licensees in Latin America – in whom they hold a 50% stake – has begun to do this with the Mexican network Televista. Colgate-Palmolive is the first advertiser to sign up, and has inserted some of its Mexican products into ‘telenovellas,’ popular Mexican soap operas that are syndicated in countries around the world.

Still, advertisers must ensure that their products don’t interfere with the content of the shows. Obviously, one shouldn’t expect to see Lucy and Desi squabbling over who gets to use the laptop. As long as it’s used judiciously, says Boot, virtual product placement represents a marvelous opportunity for advertisers to connect with audiences.

‘You could have a situation where your share of market in the west is different. And by superimposing your brand into the show – and I believe we can only do it with Canadian shows where we own the rights – that could be a helluva thing to do.’

The convergence of television and the Internet promises to offer even more opportunities for this technology, says Epstein.

‘It’s not beyond the realm of possibility that by combining our technology with streaming video, there’s a way to create reach for advertisers that’s very specific.’

Sidebar: Global should score touchdown with NetStar buy

The pending takeover of NetStar Communications by CanWest Global Communications has the Winnipeg-based broadcaster poised to become a major player in the Canadian specialty broadcasting landscape, and its properties more attractive to national advertisers.

CanWest’s acquisition of NetStar, the company that operates tsn and The Discovery Channel, is pending the approval of espn, a 32% owner of NetStar.

CanWest’s current stable of specialty channels has just one horse – Prime – and a relatively lame one at that. The addition of tsn and the Discovery Channel, both of which are strong brands, will provide the broadcaster with a much needed presence in the specialty tier, says Sunni Boot, president of Toronto-based media buying firm Optimedia.

‘Of all the specialties, tsn does a wonderful job of building promotions. If you’re targeting men and you want the environment, tsn is a must buy. There’s a tremendous synergy that can happen with cross-promotions, which could be very beneficial.’

Peter Viner, president and chief executive officer of CanWest Global, says that the acquisition of NetStar will allow Global to share properties with tsn and Discovery, thereby generating more advertising revenue.

‘With this combination, we’ll have the ability to acquire and market product across the entire network,’ he says.

Global also hopes to tap into the marketing resources of tsn and Discovery to improve the way it promotes Prime, says Viner.

The NetStar acquisition could also affect Global’s relationship with Princeton Video Image, the Lawrenceville, n.j.-based company that is providing Global with video insertion technology for Super Bowl XXXIII (see above).

‘We’re very excited by Global’s growth,’ says Lawrence Epstein, chief financial officer for pvi. ‘ We’re in discussions with Global about a longer-term agreement, and it’s certainly conceivable that that could be an exclusive relationship.’

Virtual imaging technology could have wide-ranging applications for tsn’s sports programming. And because pvi has the ability to insert images by region, it could provide a powerful means of attracting ad dollars from different parts of the country. SS