The Phase I survey of the Advanced Advertising Media Project (AAMP), an industry-wide research initiative to measure the impact of advertising within free video-on-demand (VOD), yielded insight on the diversity of attitudes toward VOD advertising; the importance of marketing VOD as a product; and the need for a better understanding of consumer behaviors. The study further surfaced the overarching belief that free VOD has the potential to play a unique role in the television ecosystem as a platform for relationship marketing between advertisers and consumers.

Designed to reveal a baseline understanding of industry perceptions and opportunities related to dynamic VOD advertising, the AAMP Phase I media insights study included more than 20 in-depth interviews with media industry thought leaders. Among the most widespread findings:

  • Long-held attitudes and perceptions remain that VOD is a medium full of potential, but hampered by a lack of established business practices.
  • Metrics that approach established measurement tools already in use within the industry were identified as critical to helping advertisers understand the value of on-demand placements.
  • Full-scale research is required to gauge consumer awareness and usage of VOD, as well as reactions to advertising in a VOD context, where little visibility exists today.?
  • VOD needs to be packaged as a product, and marketed to both advertisers and consumers in new ways that highlight the unique qualities of the VOD medium.
  • VOD affords an opportunity for advertisers to connect to consumers in a highly engaging, focused viewing environment.

Among the companies that participated in the survey were A&E Television Network, Cablevision-RASCO, CBS, Combe, Comcast, Digitas, Discovery, FOX, General Motors, Interpublic Group (IPG), Mediasmith, MediaVest, NBCU, Rainbow Media and Starcom.

Today, the AAMP working group has completed the test design and has defined the parameters of the second phase of the study – a VOD research lab that explores and validates consumers’ responses when engaging with advertising in simulated VOD versus traditional TV environments. Phase II is expected to be complete by the end of the summer.

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