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Video On Demand Advertising Effectiveness

October 21st, 2009 Leave a comment Go to comments

Screen Digest pointed out that the ad load (number of ads shown per programme) on web VoD services is approaching broadcast levels.
‘VOD on cable TV is an opt-in medium and that means viewers are engaged’ says Daisy Whitney in her New Media Minute video report:

Simon McGrath, CMO of SeaChange International has said the following in February:

Relevance is the key to success here, as in so many other areas of marketing. It’s possible for marketers to place ads in context for a viewer by mining viewing information available from operators using advanced VOD advertising platforms to source the right ads for the right viewer, down to zip codes. Content owners – the networks and cable operators – have opportunities to work more closely with media buying agencies and their advertising clients to reach audiences on what is arguably the best screen in the house, the TV. VOD ad platforms support a variety of ad formats, from traditional embedded ad spots to ad overlays, bookends and even long-form, on-demand ’showcase’ ads that deliver information and some degree of interaction. And it won’t be long before an AdWords-type clickable link can take the viewer from a traditional ad to a showcase spot that delivers deep information about a product the viewer is really interested in.

But wait – don’t time-shifting viewers skip the ads?

Reports vary widely on the percentage of viewers who use their DVRs to skip ads. The good news here for marketers, according to Capgemini’s 2008 report on addressable advertising, is that many viewers who watch VOD appear to be willing to watch ads inserted into VOD programming (76% prefer to watch ad-supported content as opposed to 23% who prefer to watch paid content).

VoD will most probably shake up the TV ad market, but will ultimately lead to a better viewing experience and a highly targeted, accountable medium for advertisers. The advanced targeting methods and interactivity used around VoD on the web cannot be ignored by broadcasters or advertisers and will set the standards as VoD becomes more prevalent in our living rooms.

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