AAMP initiative seeks ways to make money on VoD advertising

There's money to be made from dynamic advertising insertion (DAI) into video-on-demand programming, and the newly formed Advanced Advertising Media Project (AAMP) wants to determine the best way to do it.

AAMP is an "industry-wide initiative" driven by the 4A's and BlackArrow and supported by a "slew of leading media companies" including A&E Television Networks, CBS, Comcast (Nasdaq: CMCSA), Digitas, Discovery Communications (Nasdaq: DISCA), Horizon Media, NDS and Rainbow Media, BlackArrow President Nick Troiano told FierceCable.

To date, he said, "there has been a lack of information or any research done at any significant level around advertising effectiveness," so AAMP is conducting a a three-phase research study to develop a baseline of what media industry leaders perceive as the opportunity, test variable consumer experiences in simulated VoD and linear TV environments and take the theories into the real world.

It might be a given that viewers don't want to see any advertising, but online viewing trends have indicated that consumers will put up with ads to get "free" content. The trick is to find what model works best and is would deliver the best results for service providers, programmers and advertisers, Troiano said.

"There are seven billion VoD views in the cable infrastructure," Troiano said. "Our partners at AAMP believe it's a unique opportunity."

The initiative is "timely," said Yoav Schreiber, senior analyst of digital media infrastructure for Current Analysis. "By influencing the market perception of DAI, the AAMP initiative hopes to re-ignite the momentum around dynamic on-demand ad insertion."

For more:
- see this news release

Related articles:
Ad insertion aims to make VoD more attractive
Canoe to float interactive, VoD ad demos at NCTA Show