by Guthrie Widman
By enabling more immersive brand integration in television advertising, the digital world could be the savior of the very medium it threatened to destroy.
Though advertisers are slow to accept it, there’s no denying that television consumption patterns are changing for good. No longer satisfied with the traditional model of schedule-driven programming transmitted through the set top box, consumers are leading the charge toward on-demand entertainment, viewable on the device of their choosing. This power shift is pervasive; consumers aren’t just passive viewers anymore, they’re also generators of content, co-creators of products, and – with social media – a media channel in their own right. But arguably one thing hasn’t changed: there will always be a place for long-form, studio-produced content. The difference is that monetizing this content is no longer as simple as selling 30-second spots to national advertisers. With anytime, anyplace consumption and the advent of Tivo, advertisers must adapt their methods for making an impression on and engaging with consumers. And to remain viable, content producers must do their part to facilitate this process.
Branded entertainment and product placement is nothing new, but thanks to the paradigm shift discussed above it has recently become more prevalent. In a desperate attempt to get noticed, advertisers have done a poor job of seamlessly integrating their brands into sets and storylines, and consumers are savvy to this. Therefore, in an attempt to make advertising less invasive, I foresee content producers working more collaboratively with agencies to infuse their video content with more dynamic and immersive ads that give consumers an increasing amount of control over the brand experience. While it’s hard to say exactly how this will play out, there is some precedent that might provide us with some clues.
On-screen merchandising?
Telemundo recently began licensing products (see below) for integration into the plot line of its telenovela, “El Clon.” These products are then made available on an eCommerce page at telemundo.com. While this is an isolated example, this collaboration between brands and a studio to create a more authentic branded experience is worth noting. It also points to a potential opportunity to market items without conspicuous brand identities (i.e. those without emblazoned logos or branded packaging).

AdSense for Video, Studio Edition?
Between Gum-Gum, Image Space Media, and Google-backed Pixazza, in-picture advertising (see below) is becoming increasingly ubiquitous. One problem, however, is the labor-intensive nature of the model. Image recognition technology has not advanced to a point where specific products that appear in a random image can be automatically spotted, tagged, and associated with an etailer. This must be done manually, which could represent a serious impedance to the growth of this medium, at least in the consumer-generated space. However the studio-generated space is different. As the Telemundo example demonstrates, this is a more controlled environment, where product integration is planned upfront.
Advertising as “special feature”?
Though it’s not yet widespread, the technology exists to embed “special features” directly into featured video content. As an example, the interactive trailer for Iron Man 2 features the traditional movie trailer, but at key points during playback the viewer is served up dynamic content which he/she can selectively choose to engage with while the trailer pauses. This was not a perfect execution – for example the interface distracts from the primary content – but it does point to an opportunity for advertisers to integrate themselves into video content in a much more dynamic, experiential way. And borrowing from the precedent established by the two examples above, there is even an opportunity to couple these brand experiences with offers to purchase merchandise. We could see this happen online in the very near future and, if the promise of interactive television ever comes to fruition, we could also see this play out on our television sets.
The iPad’s role in setting the stage
The introduction of the iPad will also play a large role in determining how long-form video content will be monetized in the coming years. The interaction users have with this device will begin to establish a contextual vocabulary that they will come to expect when using other devices and consuming other forms of media. While the tactile nature of the experience will be difficult to emulate without a multi-touch capability, the coupling of dynamic content with interactive marketing will become something consumers will become increasingly accustomed to and, once the kinks are worked out, embrace as a non-invasive alternative to traditional advertising.