• by David Goetzl  @dgoetzl, September 11, 2008

In case there was any question, Verizon thinks it has some significant growth ahead, thanks to its VCast service. But, of course, anyone who watches TV, reads a newspaper (which may be no one), listens to the radio, or walks by a billboard can pretty much figure that out.

As Verizon divines it, someday everyone will covet the opportunity to watch streaming video on a handheld device--so much that they will be willing to spend the type of gargantuan dough on a VCast subscription that they spend on their cable bills now.

And the telecom giant is putting the chicken before the egg. Forget about waiting for demand to bubble up, which may happen as online video becomes even more popular and that thirst transfers to the mobile space. No, it's seeding demand now--and spending a bundle to do so.

Last year, Verizon spent some $3 billion in advertising in the U.S., according to Advertising Age, making it the country's third-largest advertiser--up from fifth the year before. It's not clear how much was dedicated to VCast, but it's no small subset.

Verizon actually started spending behind VCast well before any evolving consumer behavior--as far back as 2005, if not before. And in addition to all those TV ads and ubiquitous sponsorships, it has been an active player in employing product placement as a marketing maneuver for the video-on-mobile service.

Three years ago, Verizon linked with "Access Hollywood" on a promotional tour. A year later came a memorable integration on the Fox series "The O.C." VCast had a cameo as one of the character's comic books had a video version streamed on the service.

On Aug. 18 came another integration on an episode of ABC's summer reality series "High School Musical: Get in the Picture."

The series, a derivative of the hit Disney franchise, is a competition in which the winner will get a starring role in a video to be shown during the credits at the end of this fall's "HSM" theatrical version.

In the episode, the contestants are seen preparing for a performance--and VCast is alongside (one of the top product placements of the week, according to measurement firm iTVX). There are close-ups of devices that receive the service. And at one point, the group calls on a singer to use one of VCast's other heavily promoted capabilities: the opportunity to download music.

During the show, there's also a billboard that reminds viewers when "Get in the Picture" is on ABC. And it cleverly encourages them to check out show clips on VCast by running "HSM" video within a Verizon handheld, which is isolated on screen.

VCast is billed as "America's Most Entertaining Network." ABC might object, but money talks, right?

And it will surely continue to do so. Expect many more examples of VCast integrations in scripted and reality series in the near-, mid-term, long-term and longer-term future.

Verizon's budget assures that. But so does the ease with which VCast-enabled devices can be inserted into a show. Be it as wallpaper or part of the story line (a la "The O.C."), it seems about as easy as dialing 411 (more revenues for Verizon).

Even if it were difficult, networks would surely make it work. After all, telecommunications is one category that shows few signs of slowing, even as the economy does.
Click here to view these placements. Data and analysis provided by iTVX.