The Power of Video on Demand

Here’s a quick little blog for the fan base about how Video on Demand (VOD) can be an effective advertising tool.

In this case, I am talking about networks advertising themselves (e.g. using promos to get tune-ins). Rentrak does a fair amount of work on the effectiveness of promos, which is how many people “convert” to viewing a show when they see a promo for it.

Now turning to VOD, one nice thing about the millions of return path TVs Rentrak has is our ability to look in detail at TV viewing across linear (that’s the lingo for plain old programming) TV and VOD. We can look at duplication of viewership. So we can see what happens when a network runs a “teaser” for a new show on VOD, and then see how many tune into the program on linear TV. Guess what? We see that VOD teasers for new programs have a higher conversion rate than traditional promos.

Bruce Blog Chart

Now these aren’t controlled experiments, neither are they the same shows, so fellow research nerds don’t give me a hard time!

But these results give an indication that those people who chose to watch VOD are more involved. It requires positive action to select and view the VOD teaser. And if the teaser is good enough, it does have the power to get people to take subsequent action and watch the full program. Bottom line, VOD involves and gives power to the viewer, which is the new world of marketing. Promos, while effective, exist in the older model of “pushing” at the consumer. VOD is the world of tomorrow’s marketing, today.

In case you don’t know, I am Bruce Goerlich, Chief Research Officer at Rentrak, the global standard in movie measurement and your TV Everywhere measurement and research company. I have been in the research end of the marketing business for more than 30 years primarily on the ad agency side, with my last stint prior to Rentrak in the role of President, Strategic Resources Zenith Optimedia North America. Somewhere along the way I morphed from young Turk to old fogey. Now that I have grey hair and am horizontally-challenged, I can speak with some authority on advertising and research issues – which I will do from time-to-time on this blog.

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