Tuesday, May 02, 2006

Disney Trials Interactive Advertisements

No sooner had I finished blogging about the potential of free/ad-supported online content than I read a Reuters article about Disney's plans for abc.com.

The company is going to trial a single interactive advertisement in lieu of a bundle of thirty second slots per ad break when it makes available some premium programs like Desperate Housewives and Alias via the internet this month.

This is a fantastic development and -for once- we are seeing a network trial things in a realistic sense. Gina Keating mentions in her article that 'Disney officials said they do not expect abc.com to replace tv advertising or even provide a meaningful revenue stream in the near future.'

What the company is trying to do is figure out how consumers use interactive media and where the capacity to monetise it lies. According to the article this information will be made available when ABC unveils its fall schedule in New York on May 16.

This is exactly the kind of exploration the industry needs. Firstly, unlike newspapers, they have not walled their content behind payment barriers. Secondly, they have recognised that online video is not just re-packaged television but an entirely new area with its own set of as-yet untested rules. Thirdly, there is a willingness to trial these different methods at a monetary loss. It was not so long ago that you couldn't even download a trailer of an upcoming movie -you had to stream it because miserly studios would not realise material from their white-knuckled death grip.

And finally; interactivity -in the web 2.0 sense- is what each of these companies should be aiming for. It is now an expectation of sophisticated web users. This marks a very important step away from the broadcast model, especially as users are given the option to continue interacting with the advertisement beyond the thirty second slot should they so desire. Gone are the days of scurrying for a pen to catch a phone number you saw in a tv ad.

This model clearly has no long term future but that is not the point of trialling it. The point is to start testing the waters so that we end up with a workable online content industry That does not butcher its tv parent or fall prey to piracy. Disney recognises this. Snaps for Disney.

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