Building VOD's New Ad Model

Corcoran, Kevin
September 2004
Multichannel News;9/27/2004, Vol. 25 Issue 39, p63
The article reports that video-on-demand (VOD) delivers to advertisers; the cost of reaching a specific audience segment through this platform can also be extremely cost effective. Unlike traditional advertising which is based on CPMs, or how many total viewers the advertising message has the potential to reach VOD advertising rates could be based on the desirability of the targeted audience segment. Investing a small amount of time exploring the targeted audiences of the various VOD programmers will enable advertisers to draw a bead on very specific demographic or geographic targets. And because VOD advertisements are encoded in the programming itself, on-demand programmers can also provide advertisers with an exact number of unique impressions for any specific period of time. The cost of VOD advertising is so insignificant in comparison to more traditional forms of media.


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