Colin Dixon, Senior Partner
December 9, 2011
In an interesting juxtaposition of announcements, two companies gave us completely different takes on the future role of interactive advertising. Canoe Ventures announced that interactive video overlays to ads offering viewers the chance to request more information increased ad awareness and purchase intent. Across the pond, in the U.K., Sky announced it would stop selling red-button interactive ads due to a lack of demand from advertisers. Instead it will focus on green-button ads that allow viewers to download extended ads to their DVR for later viewing.
Sky has been selling interactive advertising for over ten years. During the early years the spots sold well. However, it was interactive on-screen betting that generated the lion's share of the revenue rather than advertising. It is significant that a company that knows so much about TV-based interactivity should decide to move away from on-screen interruptions of the TV viewing experience.
As well, we have begun to see the emergence of simulscreening, two-screen interactivity where the viewing experience on the TV screen remains pristine while interactivity is pushed to an iPad or mobile phone in the viewer's hand. For example, eBay just announced an app for the iPad that lets users buy something related to what they are currently watching. This type of functionality was often promoted as one of the things that on-screen interactivity could bring into the home.
Canoe Ventures has had limited success with its interactive overlays - around a 25% increase in retention, brand awareness, and purchase intent. However, with the Sky and E-bay announcements as context, it seems like the time for "old-style" on-screen interactivity has passed. Connected devices and the Internet seem a much better solution for consumers, advertisers, and show producers alike.
Want to hear more of Colin's opinions? Check out the latest edition of The Kitchen Sync.
ShareThis