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Stats on Targeted Advertising – Why Cable Loves VOD

If video-on-demand (VOD) is really growing as quickly as cable operators suggest, then VOD advertising is about to become a gold mine. According to a new study by Frank N. Magid and Associates (reported by Anthony Crupi at MediaWeek), the impact of commercials during on-demand programming is quite impressive. Forty-seven percent of respondents to the Magid poll of ExerciseTV viewers were able to recall a pre-roll advertising spot, and forty-eight percent said it made them “much more” or “somewhat more” likely to purchase the advertised product.

Of course, surveys don’t necessarily indicate what action consumers will ultimately take, just their intentions. But it stands to reason that advertising is more effective when:

  1. It’s targeted to your interests
  2. It’s not lost in a flood of competing ads
  3. You can’t fast forward through it

Google built its success on the Internet advertising game. With VOD, cable operators see a whole new playing field.

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