On-Demand Advertising

On-Demand Televsion Advertising

On-demand advertising addresses the new advertising opportunities emerging from video-on-demand (VOD), digital video recorder (DVR) and other forms of non-linear television. As consumers take more control over what, when and how they access entertainment, traditional advertising models are giving way to on-demand and opt-in models that are more targeted, contextually relevant and interactive. Also called iTV (for interactive television), the new digital television will totally change how advertising is purchased, delivered and measured.

On-Demand and Direct Response

On-demand advertising provides an exciting way for visionary direct response marketers to break away from the pack and reach new audiences. Direct response ads can be inserted between video-on-demand content or showcased on special infomercial channels that introduce new products and promotions. Viewers that are interested in fitness products, for example, can be targeted at all times of the day or night, expanding the audience beyond insomniacs and other non-primetime viewers.

The opportunities for DR marketers are endless and still evolving. VOD and DVR advertising will ultimately progress from branded showcases and simple telescoping ads to product placement frame grabbing and transactions within the entertainment streams themselves. These self-selected ads will not only be highly creative and engaging, they will also know the specific lifestyle and purchasing habits of the individual viewer.

Internet and on-demand television advertising will eventually converge through touch points such as online programming guides, DVR scheduling and Web-based portals of popular shows. Consumers will use multi-media remote controls to effortlessly surf from TV show to Web portal and back, followed by smart ads that stream from one medium to the other.

Like online advertising, on-demand advertising is uncharted territory for many traditional direct response marketers. Koeppel Interactive helps marketers take the leap into on-demand television, providing a complete outsourcing solution for market research, media planning and buying, creative management, ad trafficking, analysis and reporting.

Measurement and On-Demand Advertising

One of the most exciting aspects of on-demand advertising is the degree of measurement that can be accomplished. Unlike linear television advertising, on-demand advertising can be tracked and quantified at the transaction level for true return on investment (ROI). Direct response advertisers will not only be able to track who watched their spot or infomercial, but also the precise moment in the stream when they decided to click and buy.

Types of On-Demand Advertising

Video-on-Demand Advertising

Video-on-demand or VOD advertising involves a variety of ad units delivered In Pod, In Navigation/Guidance and In Program. The VOD ads that are most similar to linear television ads are bookends, which are streamed before and after VOD content streams. Click-in direct response spots and long-form infomercials can also be placed alongside VOD content or in the VOD menu for viewers to select and watch. All of these ads can be delivered according to genre, show, segment, zip code and/or viewer profile.

In addition to long-form ads, in-depth product showcases provide ways for advertisers to offer unique branded content and build a deeper relationship with their customers. These showcases allow viewers to select and watch promotional content that is more entertainment than advertising ("advertainment").

Koeppel Interactive buys media for the following types of on-demand ads:

  • Commercial overlays
  • Addressable ad insertions
  • Viewer control triggers
  • Time-shifted commercial substitution
  • Sync-to-commercial display ads
  • Video ads in navigation/guidance
  • Navigation/guidance ad links
  • Product placement overlays
  • Bookends (pre-roll and post-roll)
  • Display ad adjacencies
  • Telescoped long-form ads
  • Bookmarked long-form video
  • Product showcases
  • Enhanced (polls, coupons, product trials, RFIs and transactions)

Digital video recorder (DVR) Advertising

Digital video recorder or DVR advertising involves ads delivered during fast-forward mode or on sponsored channels, such as TiVo's showcases. Users click special on-screen icons to navigate from a broadcast stream directly to an ad, or to a showcase with branded entertainment. DVR advertising will ultimately converge with VOD advertising, supporting most of the ad units listed above.

Internet protocol TV (IPTV) Advertising

IPTV. also referred to as Broadband TV, will provide new advertising opportunities by piping Web content and services directly into the television or set top box. An alternative to cable and satellite delivered television, IPTV uses Internet Protocol (IP), but streams the signal on dedicated lines rather than using IP's more fragmented routing to ensure a clean, unbroken signal.

While IPTV will offer VOD, DVR and other digital services similar to those offered by cable and satellite, it will leverage the network more through a combination of Internet, home network and portable device connectivity. With IPTV, highly targeted and contextual ads will follow users from one activity to another across multiple devices, channels and media. These ads will be as interactive on television as they are on the Web, allowing users to click and type a product review, or buy via shopping carts that upsell or downsell depending on the customer's behavioral profile.

Mobile TV Advertising

Mobile TV advertising involves ads delivered on next generation handsets that support video programming. Aimed at on-the-go consumers, mobile TV ads are more subtle, contextually relevant and targeted than conventional ads. While mobile ads may be delivered before and after entertainment streams, the most successful are integrated into the entertainment itself, such as a subtle text link to buy movie tickets at the bottom of a movie trailer.