• by David Goetzl  @dgoetzl, September 6, 2006

MTV Networks has partnered with a small Kansas MSO to address one of advertisers' biggest VOD complaints: the inability to change creative on the fly. In a test, the pair will use new technology to allow a movie advertiser to frequently update content in a campaign running on Comedy Central On Demand.

Advertisers have long complained about constraints that prevent them from dynamically inserting ads in VOD. Typically, they have had to embed unalterable ads into programming for several months at a time, content with staying power. There was no opportunity for an automaker launching a sale, an advertiser with ineffective creative, or a movie company wanting to promoting a future premiere to swap in updated creative.

Now, MTVN and Sunflower Broadband, an MSO serving 30,000 homes in the Kansas City area, are looking to change the model. Using technology from SeaChange International and Atlas On Demand, Paramount Pictures will be able to change creative as it sees fit (perhaps within hours) to promote the new film "jackass number two."

The film is produced by Paramount Pictures and MTV Films (both part of Viacom, along with MTVN). Paramount agency Mediaedge:cia is executing the campaign. It will oversee the insertion of evolving creative and monitor consumer usage.

Paramount plans to update ad copy leading up to the film's premiere and after it opens, perhaps to be more timely or reflect the buzz generated.

MTV hopes the test will eventually allow it to offer dynamic ad insertions for Comedy Central On Demand and other VOD offerings in other markets through partnerships with larger MSOs. The move could lead to a significant industry-wide increase in VOD ad dollars, which have been hampered by the "static" creative issue. It could also reduce viewer fatigue, brought on by the same ad reaching a consumer too many times.

Sunflower has offered dynamic VOD ad insertion for local advertisers for several months in its own sports, news, and other content. Patrick Knorr, Sunflower's general manager, says the partnership with MTVN provides "the kind of win-win scenario that can unlock more value in on-demand advertising and advance the VOD business model for both programmers and operators."

"Sunflower's test allows for almost real-time ad insertion, and allows us to give our clients something they've wanted since the beginning--timely, highly targeted VOD advertising opportunities," says Carolyn Everson, senior vice president of ad sales strategy and business development at MTVN.