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 ResponseOn-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 AdvertisingOne 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 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
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.
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