Tuesday, September 25, 2007

Networks Stick With Commercials in VOD Test

ABC and NBC are partnering with Cox Communications to enable top shows to be watched on demand through their cable boxes. This acquiesces to advertiser wishes and could increase the programs' audience, but a more strategic advertising plan is needed.

By simply repeating the ads that are broadcast live and disabling the fast forward button, the networks are prompting customers to order a DVR service. Consumers will accept ads during TV programs as they've always done, but the DVR crowd wants shorter or at least more targeted ads.

Plans are in the works for dynamic ad insertion and geotargeted ads, technologies which are the future of TV. While the networks will hold onto the mass advertising rates and model for as long as possible, less ads that are targeted to consumers AND interactive will inevitably rule the day.

Someday TV ads will be judged by the same click-through rates as the online world. This will be a huge shift when it happens.

Source: MediaPost

Posted By John Gartner at 09:32 AM
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