Project Kangaroo set to offer targeted ads

The as-yet-unnamed service's backers are considering introducing a registration process on the service's homepage, which would help track how users access video content and ensure effective advertising. Users would initially be asked to submit details such as their sex or date of birth, with the possibility of more detailed information being captured in future.

Errol Baran, Channel 4's head of new media advertising, said the registration process and targeted advertising offering would be unlikely to be up and running at launch, which is expected to be in the summer, but could be a "phase two development".

Neil Walker, digital buying manager at Zed Media, said that a registration process was to be "welcomed from an ad perspective, as long as it doesn't impact on audience delivery".

Meanwhile, as the service nears launch, details are emerging about its commercial arrangements. ITV and Channel 4 will handle ad sales around their own content, while BBC Worldwide is seeking to appoint a third party to handle ad sales around its content. Both ITV and Channel 4 are pitching for the BBC Worldwide contract.

The broadcasters have been in discussions with agencies including GroupM, Aegis and Zed Media to gauge advertisers' feedback for the service. Baran said: "We are planning with them and the response so far has been fantastic. They are incredibly engaged with us."

Advertisers will be able to buy display ads, pre-roll ads and centre-break ads around content on the service, while sponsorship is also a possibility.

Baran said: "It is about bringing brands closer to the audience. But it is in the stakeholders' interests to offer the best user experience [by getting the right balance of advertising], while managing to drive commercial revenue opportunities."

The service is expected to launch in August as a web-based service, with TV-based offerings likely to come at a later date. Branded BBC, ITV and Channel 4 homepage areas will act as a "pathway" to each broadcaster's content.

The broadcasters' existing VoD services are expected to continue to run as catch-up services, in parallel with the deeper archive content offered on Kangaroo.