The ad-supported Video On Demand (VOD) experiment reaching Cox Communications’ digital cable households in San Diego at least offers food for thought (see story, p. 1) and, at most, could prove to be of lasting significance. The four-month VOD trial service, which Cox has dubbed FreeZone, might translate down the road into assorted meaningful content-creation opportunities for the advertising and spotmaking communities.
VOD has gotten the most buzz as the conduit through which cable homes can immediately access and view feature films. But there’s other VOD potential to be unearthed, according to Cox, which contends that there will be viewer appetite for ad-sponsored entertainment and information. Exploring this avenue are several major advertisers, including Diet Coke, Volvo North America, Kraft and Sony Music Entertainment.
An advertiser could advance its brand—or even help shape it—via its own VOD channel, observed Brad Trotter, VP/business development for convergent media firm Cylo, which worked on Volvo’s content for FreeZone. Trotter cited advertiser sponsorships of concert tours as an example. "You could have the Britney Spears Pepsi channel, featuring Britney Spears videos, concert footage, music and tons of content, along with Pepsi spots," he related. Trotter noted that an advertiser could sponsor and have its agency create VOD content for a channel of quality programming, ranging from documentaries to concerts to shorts and other entertainment fare.
Informational, more sales-oriented content could also draw a VOD audience. For the prospective car buyer, seeing a certain make and model of automobile being put through its paces—accompanied by relevant product info—could help in the purchase decision-making process. Plus there’s the opportunity to gain response from customers, be it in the form of requests for more info or discount coupons, and/or outright orders to purchase goods. But, emphasized Trotter, VOD is far more than and different from direct-response television. He cited branding opportunities and the sponsorship of entertainment and informational programming that audiences will seek out—not zap out.
Cox’s VP-marketing and new media advertising, Debby Mullin, noted that VOD can complement traditional commercialmaking, with broadcast spots driving traffic to VOD for varied reasons—to complete a cliffhanger ad seen on TV, or to turn viewers onto a VOD channel or program that could be of a specialty interest.
However, it must be remembered that FreeZone is just one VOD deployment in a single market. As Trotter related, it will take "some time before the model shifts to the degree where people are creating content specifically for this platform and medium. What we’ve had to do at this point is find some content that could be re-purposed.
"But in the big picture," he continued, "every MSO in the country is rolling out a VOD service and as those begin to take hold…I think we will see a lot more of this [ad-supported VOD content] emerge. The production companies, advertisers and agencies should be able to find opportunities to create different content that’s not constrained by the traditional broadcast model."
Phil Bienert, manager of customer relationship management, e-business and future product strategy for Volvo Cars of North America, said that VOD "fits perfectly with Volvo’s philosophy of providing services that cater to customer choice. … Our customers and prospects get to see what they want when they want it."
Offering insights into emerging opportunities in the biz, including VOD, will be the first annual Forum—being presented by SHOOT and The Source—at The Metropolitan Pavilion in New York on Oct. 17. Among the scheduled panelists is Cylo president Kirt Gunn, who described VOD as "a very important technological development in advertising, particularly for the automotive category."
