• by Joe Mandese  @mp_joemandese, July 6, 2004

In an update to association members and the advertising business at large, Association of National Advertisers President-CEO Bob Liodice Tuesday shed new light on the association's enhanced television initiative. In his periodic blog, "Marketing Musings," Liodice outlined the initiative's parameters and goals, noting that it would run for about one year, and would consist of two phases.

"The first cycle will include the launching of the project, testing the different enhanced television advertising propositions (video on demand, TiVo, etc.) and analyzing consumer interaction," wrote Liodice, adding: "The second cycle is an integral element to the success of the initiative because it allows the participating advertisers to modify their approach based on the initial discoveries and re-test the propositions."

As such, Liodice indicated the project would function more like a real world research and development laboratory of how enhanced TV applications impact advertising, and how revisions in advertising strategies can enhance the outcome of addressable and interactive TV advertising results. Historically, most of the big test beds were turnkey affairs that didn't allow for that kind of interaction, spontaneity, and course correction.

Liodice said the initiative was open to any ANA member who elects to participate, and that the participants would utilize the ANA's and the American Association of Advertising Agencies' digital Ad-ID codes to track advertising assets and measure results during the effort. To date, about a dozen ANA members are believed to have expressed an interest in participating--including Procter & Gamble, Unilever and Wachovia--but a list of charter participants has yet to be ratified. Brad Simmons, vice president-media services of Unilever, is chairing the project.

While no date has yet been set for a charter meeting, insiders expect one to take place this month.

Liodice said the group is still determining the specific technologies that are likely to be included, but said video-on-demand would likely be included. Citing that example, he said likely questions to be answered would include:

* Do viewers forego watching real time programming to watch VOD where one may extricate commercials from the programming via VCR functionality/fast forwarding?

* Do households that access an ad-supported offering also view the cable network?

* What is the amount of time users spend on the ad-supported offering viewing (daily and weekly) as well as the amount of sessions (daily and weekly)?

* If VCR functionality is available as part of the VOD offering, how does it impact viewer behavior--i.e., fast-forwarding through commercials (front and back), programming, and so forth?

* How will the programs be packaged: by network brand (MTV on demand), by genre (news, children's, sports), or by cable or broadcast service (basic or expanded basic on demand)?

* Will on demand product cannibalize ratings and ad revenue?