Advertising on VOD

Recently, there has been a lot of speculation in the media industry of how Video-On-Demand viewing will affect advertising. The point of VOD viewing is so viewers don’t have to sit through eight minutes of commercials for every thirty-minute program that they watch. However, these advertisements are the reason why studios can spend 1-3 million dollars on primetime television. The bottom line: there has to be commercials to support the current television model.

In order to figure out if advertising on VOD is something conceivable Digitas, AAMP, the 4A’s and BlackArrow constructed the Advanced Advertising Media Project. The results came in on Wednesday and here is what the survey found (from Cynopsis.com):

  • Metrics that approach established measurement tools already in use within the industry were identified as critical to helping advertisers understand the value of on-demand placements
  • Full-scale research is required to gauge consumer awareness and usage of VOD, as well as reactions to advertising in a VOD context. Little visibility exists today
  • VOD needs to be packaged as a product, and marketed to both advertisers and consumers in new ways that highlight the unique qualities of the VOD medium
  • VOD affords an opportunity for advertisers to connect to consumers in a highly engaging, focused viewing environment.
It seems as though there is a definite future in advertising on VOD but there may be some challenges along the way. Let me know what you think about advertising on this new medium.
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One response to “Advertising on VOD

  • Samara

    I mean as a viewer, more advertisements when your trying to watch commercial-free TV definitely sucks. I also noticed these recent ads on VOD and I was not very happy about it. However, from an advertisers point of view VOD is a great medium to reach a plethora of consumers.

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