3-Minute Ads for the Interested

November 28, 2007

Question: What would you be willing to pay for an interested, attentive, non-interrupted, self-selecting viewer . . . $3, $5 or maybe $20? This is a question Empower MediaMarketing can now pose to our clients, thanks to new Video On Demand (VOD) advertising opportunities.“VOD” is a set of technologies that enable viewers to select video content from a central server for TV viewing in digital cable homes. This new media delivery system offers the right content to the right consumers whenever they want it. VOD puts the viewer in control, allowing them to decide when a program is aired, when it is viewed, when it begins and when it ends. They can pause, reverse and fast-forward the content at their discretion  just like a DVR.

Comcast, Insight, Cox and Time Warner now offer VOD platforms, commonly referred to as “Advertiser VOD” or the “Three Minute Commercial” here at Empower. It delivers advertiser content via the cable systems’ VOD platform, within their “Free On Demand” sections. Free On Demand video comprises the largest share of content (95%) and viewership (65%) accessed by VOD viewers.Another term you will hear within the Advertiser VOD world is a BNU or Branded Navigational Unit. A BNU is usually a :30 spot that runs on a cable network for the purpose of directing users to view Advertiser VOD content. BNUs are a very important element of a VOD program because they significantly increase the amount of viewer traffic to the Advertiser VOD channel.Once a viewer chooses to watch Advertiser VOD content, it typically runs an average of 3 minutes per view. Cable systems can capture and report back the amount of time spent viewing this content, as well as the total number of views, on a real time basis. Advertiser VOD sections (Comcast calls their section Searchlight) are extremely popular with VOD viewers, receiving a considerable amount of traffic and consistently ranking among the top 10 of all Free On Demand channels within most VOD platforms.At Empower, we are giving significant attention to VOD advertising opportunities for our clients.

Because it is user-initiated advertising, VOD delivers a fully engaged viewer, truly eliminating wasted impressions in a way that brings your brand to life for those who are interested in learning more.The travel and auto industries have been the early adopters of this technology. This summer, we are working with The Biltmore (Asheville, NC) to execute an Advertiser VOD program featuring 3-5 minute segments and a BNU schedule that promotes their hotel and attraction in 6 markets across the southeast. We will be closely monitoring and optimizing this trial program via “cost per view” analysis, which will allow us to compare it to established advertising metrics and determine its success.By the end of 2007, it is predicted that VOD will be in 44 million U.S. households . . . an emerging mass market. Many interested consumers could be out there waiting to watch your 3 minute commercial. If you would like to learn more about telling your story through Advertiser VOD, discuss it with your Empower MediaMarketing media strategist.

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