Canoe Ventures and Donovan Data Systems (DDS), a provider of advertising software and systems, today announced that DDS is developing technology within its cable TV buying systems to support Canoe Ventures’ advanced advertising solutions.

The announcement came at the Transformation 2011 conference of the American Association of Advertising Agencies in Austin, TX.

Canoe is creating advanced advertising solutions for TV, including iTV services, which will enable digital cable viewers to engage more deeply with TV commercials using their remote controls. DDS is in the process of enhancing its cable TV buying software so that it can accommodate all aspects of the iTV buy, including the receipt of various response data from consumers.

DDS and Canoe Ventures have been working together for the past six months to better understand the way iTV affects the buying process and to facilitate the adoption of advanced TV solutions by brands. Based on this research, DDS will be integrating iTV functionality into its cable network systems. In 2010, DDS media buying software processed over $40 billion of the total TV billings in the U.S. market, over $15 billion of which were cable buys. DDS clients include eight of the top ten U.S. media agencies.

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