New Video-​On-​Demand Technology Could Appeal to More Marketers

Video on demand (VOD) is attracting a bigger consumer audience. But, marketers have encountered technical problems watchingtvgetting their messages out on this format. This situation may change soon as new technology is allowing cable TV operators to more easily sell advertising for the VOD format.

Currently, consumers watch about 4.8 hours a month on VOD. This is compared to the 156 hours a month of regular TV viewing that consumers engage in. But the amount of VOD viewing is growing. A Wall Street Journal article notes that the ad market for this format is small, $388 million a year. Technical problems play a big role in explaining why this ad market hasn't been growing.  There has long been a time delay for most TV programming that is viewed on VOD of up to 4 days, a detail which impacts how much marketers must pay networks.

Now, Canoe Ventures, an organization that is funded by several cable operators, is rolling out a way for networks to “quickly switch VOD ads.” This new technology gives operators a chance to easily remove ads which are time sensitive. The dynamic ad insertion process gives operators more flexibility in guaranteeing marketers which ads will show. Advertisers will have also more targeting ability with this new technology. Amol Sharma and Suzanna Vranica, writing for the Wall Street Journal, note that ad buyers had early negative experiences with the VOD process. These improvements in the ad buying process should attract more marketers to the format.

To learn more about Heavy TV Watchers, check out the Audience Interests & Intent Report available at the Research Store on ad​-ology​.com.

[Source: Sharma, Amol and Vranica, Suzanne. On Demand: Quick Ad Switch. Online​.wsj​.com. 27 May 2013. Web. 5 June 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.