CALGARY, Alberta - In three years the top 10 U.S. banks will have equipped 17% of their ATMs - or 8,200 terminals - to run video advertising, according to a report by the Canadian business research firm MarketSignal Inc.

Deployment of video advertising on ATMs has been slowed by the need to upgrade terminal hardware and develop automated file distribution systems, according to the report, "Video Advertising on Bank ATM Networks."

Some banks are willing to make a substantial investment to overhaul their network to support new media, and some are working with advertising brokers to build parallel networks to distribute and manage the ads, the report said.

"The future of ATM video advertising will be determined by the largest bank networks," said Neil Campbell, project manager for MarketSignal.

The report concluded that Wells Fargo & Co. is poised to lead the top U.S. banks in rolling out video ATM advertising, and that American Express Co. also has active ATM advertising plans.

Citigroup Inc. is the only top 10 U.S. bank that does not currently run ads on its ATMs, according to the report.

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