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OnDemand Summit: VOD Creates Ad Lift

New York -- Advertising delivered via set-top VOD has shown to be more effective than those delivered through linear TV, generating more engagement with viewers, a top exec with the MSO-backed Canoe advanced ad joint venture said.

According to a recent Canoe study, VOD ads generated a 6% lift in retention, a 4% increase in the viewer’s desire to search out the advertised product, and a 14% boost in overall ad “likability,” Chris Pizzurro, head of product, sales and marketing at Canoe, said here during an ad panel at the Multichannel News/Broadcasting & Cable OnDemand Summit.

“The on demand world is here to stay,” Jim Keller, vice president of East Coast/Mid-West sales at Hulu said. “Consumers today are in the control seat.”

Ad-supported VOD “is one of our fastest growing segments,” noted Scott Rosenberg, vice president of advertising at Roku, which recently struck an ad measurement deal with Nielsen.

Still, ad buying in the on-demand world has become an increasingly difficult challenge due to the multitude of platforms out there, from the set-top to smartphones, tablets, streaming players and gaming consoles.

Jon Heller, co-founder  and co-CEO, FreeWheel, the ad-tech firm now owned by Comcast, offered some advice for media buyers that are seeking the most effective way to develop and launch on-demand advertising campaigns: “Please do not treat the world as a Web browser,” he said, noting that one-third of digital viewing is not on a laptop, and that ad budgets must now span a world of syndicated platforms.

Advertisers, Hulu's Keller said, are “looking for that total audience measurement.”

But getting an accurate fix across those platforms remains a significant challenge, said Jonathan Steuer, chief research office and vice president of data products strategy and insights at TiVo Research said. Using a “mosaic approach,” he said, can also lead to some guessing games in the final viewership unit analysis, as it can be difficult, for example, to know if the same viewer was reached with an ad via more than one platform.