Kraft, TCI in Deal to Target Cable Users

Kraft Foods and Grey Advertising unveiled a deal with cable TV operator Tele-Communications Inc. to develop ways to target ads to specific households. Using TCI’s digital network, the alliance will create “sophisticated micro-marketing advertising vehicles that reach consumers with targeted messages on a household-by-household basis,” the companies said. One of the first applications will be to tailor and deliver ads to urban and suburban markets within the same region, the companies said. But as digital delivery of television signals becomes more widespread, the advertising targeting possibilities also increase. Under the agreement, Kraft will also begin purchasing local cable advertising time on TCI cable systems in several leading markets. Financial details were not released, but Michael Mudd, Kraft vice president for corporate affairs, said the ad buys would amount to a “multimillion-dollar” transaction with TCI.