Wednesday, January 18, 2006

Video-on-demand ads coming

We have for a while been saying that the next frontier for advertising technology and services to crack is on-demand advertising and advertising on mobile phones. For, after all, until this happens video-on-demand services and data services on mobile phones will see limited user take-up. The model won't scale as it could based on users always having to pay a fee for every single download.

Well, finally it looks like Comcast may be making some progress. For the US' largest cable operator, plans to introduce a video-on-demand channel today that will include advertising embedded in the programming.

It's called Exercise TV, and the ads will be integrated into the programs. Comcast has sold exclusive advertising rights to New Balance, the footwear maker, for several million dollars. This will allow the company to insert its products and logo in and around the programs, initially a selection of 90 fitness episodes.

And the epxectation is that this approach, tailored to video-on-demand viewing, will resonate better with viewers. For Comcast have found that just leaving ads that were originally in programs once they get offered on-demand gets users to fast forward past them.

So, could we soon see Google, Yahoo and even iTunes take similar approaches? Something similar they will have to figure out, for fee only on-demand services are too limiting.

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