Upfront on Video On Demand
Comcast Says There’s Plenty of Opportunity for Advertisers
By Mike Reynolds -- Multichannel News, 4/23/2006 8:00:00 PM
New York — New York— In what was billed as the first upfront presentation to promote video on demand, Comcast Corp. executives made a case Friday that downloads are continuing to boom and it’s time for advertisers to exploit numerous opportunities to get involved.
Numbers and pitches flowed from nine executives:
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Comcast on Demand has generated 2 billion views over the past 18 months, as 70% of the operator’s 10 million digital cable customers use the service per month.
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Some 7,000 programs, totaling about 2,200 hours, are available per month via Comcast on Demand.
If those views were aggregated, Comcast on Demand would be a top-10 cable network in many major markets, according to Comcast president and chief operating officer Steve Burke.
After the presentation, Jeff Shell, president of Comcast Programming, said those aggregate views would amount to a household ratings average of 1.1 in markets where Comcast has particularly strong on-demand penetration.
As such, advertisers have a chance to get involved with a platform that has transformed the way people watch television.
Likening on-demand video as something poised to grow like broadband video (estimated $225 million in annual ad dollars in 2005), with projected outlays of $640 million next year and $1.5 billion in 2009, Burke said: “Our hope is that will happen to VOD over a period of time. We want to talk to your clients and colleagues about these targeted opportunities.”
Charlie Thurston, president of Comcast Spotlight, the company’s spot-advertising arm, demonstrated some successful VOD advertising: a General Motors campaign in Philadelphia that produced 125,000 orders of 4-minute videos about different models over a year’s time; and a program in which Comcast teamed with three other major operators to drive traffic to Wal-Mart Stores during the five weeks leading up to Christmas.
Thurston outlined for media buyers two VOD offerings:
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Showcase, where a sponsor can highlight multiple products with various immersive elements, including up to 60-minutes of long-form content.
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Feature, through which products and services can be promoted in a single topic from 2 to 30 minute forms.
Thurston and Dave Cassaro, president of Comcast Networks advertising sales, recommended sponsors secure “navigational” schedules on 40 to 50 networks in which Comcast Spotlight inserts ads, to drive viewers toward on-demand ads.
Cassaro acknowledged “there a lot of research issues that need to evolve over time, but we’re ready to play in the new media landscape.”
Ad agency executives have complained to cable companies that VOD information remains too broad and that data about specific shows hasn’t been shared. Agencies want viewing, demographic breakdowns and length of watch numbers for individual shows.
Comcast evidently plans more on-demand offerings. Burke predicted securing new deals for hit shows airing on two other broadcast networks within the next 90 to 180 days. Those deals would be similar to ones Comcast has with CBS and NBC.
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