Mele’s Musings

VOD Ad Growth Barriers Remain

Is the ad growth based on content or on opportunity?

Picture: SizeThis.com

Article excerpt:  Will advertisers adapt to VOD? Primetime and scheduled TV are losing their impact as consumers create their own entertainment lineups. Digital video recorders (DVRs) and video-on-demand (VOD) allow viewers to watch content on their own schedule and avoid traditional TV advertising.  At the same time, the slowing economy drives advertisers to demand the greatest return on their advertising investments. With interactive digital platforms allowing more measurability, the business case for traditional TV advertising is becoming increasingly weak.  VOD would seem well-positioned to capture a rising share of ad spending, but the way consumers use it may limit its potential as an ad medium. The rest: emarketer.com

Musing:  Unfortunately, the article doesn’t offer any answers – it just raises the issue that while VOD usage is growing, it is still somewhat limited.  It seems to underplay, however, that about 50% of US consumers have used VOD, which seems like a large number to me.  In the end, they are correct that better content will lead to more VOD usage.  The question is how is that going to be connected to advertising?  It is imperative that marketers begin using more targeted and streaming options into VOD advertising for it to take off.