Atlas Creates VOD Ad Network

Atlas Creates VOD Ad Network

by Erik Sass, Thursday, Jul 13, 2006 6:00 AM ET

DIGITAL MARKETING TECHNOLOGY COMPANY ATLAS has forged a deal with Concurrent Technology, a digital video tech firm, and Everstream, a digital ratings data service owned by Concurrent, to create a network for buying, executing, and tracking the results of digital video ads. By coordinating the efforts of the three companies, Atlas hopes to gain a competitive edge by achieving economies of scale and greater efficiency for customers. The alliance will allow advertisers to deliver addressable TV ads via both broadband and cable connections for insertion in video-on-demand programming. Atlas' portion of the alliance will provide automated campaign management, Concurrent will supply the VOD itself, and Everstream will track the results. Gary Trimm, CEO of Concurrent, pointed to precise targeting and increased accountability as the big payoff for advertisers and media execs: "Targeted ad insertion and quantitative reporting of this data are critical to ensuring the prolonged success of VOD's evolving advertising revenue model." But many advertisers have indicated they think VOD services are a lackluster ad platform, for a variety of reasons. In part, VOD itself doesn't seem to have generated as much consumer demand as some expected, because audiences think much of the programming isn't of interest. According to the E-Poll study "Video on Demand: Attitudes and Opportunities," many viewers feel it's a "last resort for television." Another consumer complaint was the cost of VOD programming, often charged on a per-item basis. What's more, 83 percent of E-Poll respondents said they would accept a 60-second commercial "for a product they are interested in" in return for free VOD. Scott Ferris, senior vice president and general manager for Atlas, acknowledged that the industry was "still in the early stages of establishing the infrastructure for the next-generation VOD advertising model."