Conventional thinking has it that television viewers want fewer commercials, not more.
But some of Canada's largest marketers are betting on a new interactive technology that will allow viewers to access long-form ads for products and services that interest them.
Montreal-based etc.tv Inc. says it will begin a 10-week trial period of its service on Nov. 14 with an impressive roster of advertisers, including General Motors of Canada Ltd., Procter & Gamble Inc. and National Bank of Canada.
The service will be available to the 410,000 Quebec households that have digital cable through Vidéotron Ltée. Initially, links to the long-form ads will run only in French on the TVA network, but if the trial is successful, etc.tv hopes to expand across Canada next year.
Advertisers say interactive commercials could help television to remain a relevant advertising medium, despite the rapid rise of personal digital video recorders (DVRs), which allow viewers to skip ads.
"Contrary to a lot of what we're hearing about TV being in trouble, what we're doing by making these commercials interactive is that we're tapping into as-yet-unrealized potential in television," says etc.tv vice-president Ian MacLean.
"The viewers get more of what they want and the advertiser gets an extended conversation with someone who's really interested in their products."
The major shareholder in Montreal-based etc.tv is Mark Sherman, chief executive officer of Canadian media buying company Media Experts.
Participating advertisers will run 30-second commercials during TVA broadcasts, with an icon in the corner of the screen inviting viewers to use video on demand to access longer ads ranging in length from two to 20 minutes. Viewers can either watch the extended commercial right away or bookmark it to watch later.
"This is exactly in response to the concern over DVRs and video on demand," said Jack Myers, editor of Jack Myers Media Business Report and a major proponent of interactive television.
"This creates advertising and content on demand in a very easy and relevant way that advertisers can use to push those consumers who are interested in their products to a more intimate relationship."
Mr. Myers, who is based in New York, said he could see the etc.tv model taking off in the United States as well as in Canada. Some U.S. cable providers are experimenting with similar technologies, but Mr. Myers said the etc.tv model is particularly well suited for a mass audience like that for a Super Bowl broadcast.
Media buyers say part of what they like about etc.tv is its pay-per-click model, similar to Internet advertising. That means advertisers pay only if consumers click through to their long-form ads.
"Our clients are looking for increased accountability, which this can deliver because we can measure how many elect to access more information about our product or service," said Bruce Neve, senior vice-president and managing director for Mediaedge:cia Canada.
Mr. Neve has placed two of his largest clients -- Molson Canada and Ford Motor Co. of Canada Ltd. -- with etc.tv. He said his U.S. colleagues are also watching etc.tv with interest.
Judy Davey, vice-president of media for Molson Canada, said the brewery is participating because television is an important medium for selling beer, though Molson's young adult consumers are spending less time watching.
"We want to find ways that we can better connect with our consumers. It's an ongoing learning experience," she said.
Ms. Davey said Molson has not yet decided how it will use etc.tv, but said one possibility is a link to an extended version of its sexy Bavaria ads.
Other advertisers during the 10-week trial period include Unilever Canada Ltd. and DaimlerChrysler Canada Inc.
Marketers say it's too soon to know whether the model will be viable over the long term -- if enough consumers will really want to see extra commercials. "That's why we're testing it now -- to get in at the front. It's a low-risk proposition right now. It's a good opportunity to learn," Ms. Davey said.
In a recent research report, Forrester Research Inc. described its vision for video on demand advertising, and came up with a model very similar to that of etc.tv.
In the report, titled The Advertising Model for Video On-Demand, Josh Bernoff predicted that as the model takes hold, advertisers will rely less on the conventional 30-second spot and more on shorter ads designed to drive traffic to long-form ads. "Look for miniature cliff-hanger drama, sweepstake pitches, and ambitious vignettes. Video spots will use strategies comparable to the mix of e-mail subject lines that marketers use to get consumers to open messages today," Mr. Bernoff writes.
© The Globe and Mail
Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.
Discover a wealth of investment information and and exclusive features.
