There are 3 clear options in digital TV - and all are based on delivery protocols. The first is based on satellite broadcasting. The second uses the cellphone network. While the third is based on the Internet.

Digital TV will change the way TV commercials are structured.

Television in its new avatar (which includes mobile TV) will continue remain the centre of home entertainment. In addition, it may even take on the role of a "Home Communication Centre". These are the reasons behind Internet Search giant Google's move into "old media" like TV & radio. And "old media" giant News Corp's move into "mobile entertainment content production"!

All Roads Lead to the Internet   
Slowly, but surely, this is becoming true. It started with voice telephony which is gravitating steadily towards VoIP (Voice over Internet Protocol). Then came Podcasting which uses the Internet to deliver radio / audio feeds. This was followed by IP TV or broadband TV - which also uses the Internet to deliver video.

And currently, there is a move to deliver mobile voice telephony using VoIP - with this, the mobile operator's primary role will be to deliver wireless Internet. Once this is achieved (with sufficient bandwidth), it will be possible to deliver all Internet-based services via the mobile network - from podcasting to instant messaging to broadband TV, albeit with some format changes.

On another front, most satellite TV services offer (or plan to offer) broadband services. As a landmark development, it is worth noting that global communications satellite operator Inmarsat has recently started offering broadband services. (Any guesses when Inmarsat will switch over to VoIP? )

Interactive TV 
The first major effect of digital TV will but naturally be interactive programming. Along with interactive ads. Like the ubiquitous Internet ads, TV commercials will pop-up display forms, inviting prospects to fill them up. Or provide links to their web-sites. Or display links which will facilitate the viewer to email their requirements. Or download product specs. Only, there will be a difference - a major difference. Unlike the current Internet ads, TV commercials will be able to achieve accurate targeting by virtue of the fact that each TV set will have an associated household profile and be addressable.

The future TV ads will be less disruptive, and yield better response.

Pay per Click TV Ads
Interactive ads will also lead to metrics-based billing. For example, billing could be based on records of number of times an ad was played on each individual TV set. (With 3rd party monitoring by Google?!) Or it could be based on the number of forms downloaded. Or the ultimate basis: the no. of people who responded to the digital forms.

Once again, the advantage will be the superior addressability of the target audience.

Dynamic Pop-up Messages
With IP TV, viewers could be served commercial or sponsored messages dynamically, based on profile. Thus, while watching a F1 sports event, viewers of selected profile may see an offer to purchase miniature versions of Schumacher's Ferra

Product Placement
Digital content will offer advanced techniques of product placement. Like product images which can be embedded into video content. And replaced at will.

Downloadable Content
Digital TV will also offer option to download video content. Content which may contain commercials - or which may be stripped of ads. Content which may be played back later, once or a number of times. All depending on the value attached to each video.

Ads embedded in downloaded content may be managed in interesting ways.  Multiple ads may be stored - to be played on a 'rotation' basis. Details of ads played out may also be stored locally.

After a certain no. of playbacks, the system could insist on connecting to the TV Channel web-site. Everytime there is a connection to the web-site, new ads may downloaded, while the display metrics are transferred to the web server for the benefit of advertisers.

TVC.com
Finally, we will come to a stage where television and web-sites will start blending into each other. With a mix of static content, downloads & streaming video/audio. And online newspaper sites will start looking like broadband TV News Channels!