Tomorrow's viewers need opt-in advertising
Contributed by Simon Perry and Alison Curry*

What's the big news for broadcasters and advertisers? Interactivity. In the UK in March the BBC announced that it expects interactive and online elements in all future programme proposals. This was swiftly followed by a similar announcement on cross-platform programming from Channel 4. The impact of this on traditional TV and advertising methods, coupled with the uncertain future of banner ads and threats to the once reliable interstitial TV ad is causing programme makers, ad agencies and marketeers to search desperately for new solutions.

The threats? Increasing sophistication of interactive TV, developments in video streaming, Personal Video Recording devices such as TIVO which allow the viewer to 'skip' advertisements, banner ads' CPMs dropping through the floor and the uncharted territory of streaming ads over the Internet. Traditional production companies, broadcasters and old school ad agencies need to find new ways to engage viewers and make money in an environment where audiences can opt out of viewing advertisements.

Effectively, the message is - get a grip on interactivity or get out.

It's also an opportunity for relatively new entrants, such as Lemon TV, a technical TV production company specialising in highly advanced cross platform TV and Webcasting staffed by people from both film and computing backgrounds. (The company' work recently won Special Commendation for Pioneering Work at the International Webcast Association Awards, with particular recognition for its contribution to interactive advertising). Initially Lemon produced its interactive work predominantly on computer platforms. The team has been working on interactive advertising and programming on TV, the Web, and now PDAs (handheld computer) platforms with an eye to the shake-up that's in the pipeline.

Lemon TV's work has been heralded as among the most sophisticated, high-quality interactive media around, with the likes of RealNetworks using Lemon TV's productions to demonstrate the interactive capabilities of its own software. However, until recently Lemon TV has focused on development on PCs, "iTV just was not capable of supporting the level of interactivity we have been producing" says Simon Perry, CTO of Lemon TV, "We wanted to develop a detailed understanding of the principles of interactive video and have spent the last few years doing exactly that, creating viable interactive and commerce-enabled productions".

Lemon has closely monitored iTV development, creating broadcast quality productions in anticipation of the growth of interactive and cross platform programming. Perry believes that the situation is now changing, and that iTV is catching up.

Lemon TV's experience in iTV programming and advertising, working with broadcasters, ad agencies and production companies gives it an advantage over newcomers less familiar with the interactive arena. Stefan Gates, Head of Production at Lemon TV observes, "We've seen a great deal of uncertainty out there about how to use interactive productions õ it's a combination of technical skills like programming front and back-end systems together with traditional skills of storytelling, budgeting and project management. Over the last two years, we've developed production systems and storytelling techniques, and we now have a great deal of specialist experience." Lemon TV is now taking its skills to the blossoming world of iTV and working on cross platform programmes with some of the major broadcasters.

One piece of work to attract particular interest in the advertising and streaming industries has been an interactive -streamed production for Virgin's virginstudent.com, the Worlds first clickable broadband video advert.

The Ad was conceived when Gates and Virginstudent.com Brand Manager James Layfield were both speaking at a Branding conference. "We had been hoping for an advertising client with the vision to create something truly groundbreaking, and with the uncertainty in the advertising industry about new technology, the time was right to showcase the future of iTV commercials and streamed Internet advertising."

Virginstudent's Layfield had a very specific requirement. "We needed to demonstrate the functionality of our site to a very media savvy audience." Virginstudent.com is one of the most popular online student communities currently operating in the UK, offering a dedicated service to all UK students incorporating online tools, discounts and a comprehensive database of local student-specific information. Since its launch virginstudent.com has gained over 100,000 registered users.

With a major on-line campaign planned, Layfield felt that, "The banner alone is dying. Advertising on the Internet has only just begun, we are at the beginning of a very exciting time and advertisers and agencies must think beyond simple off-the-shelf solutions."

He also wanted to spend his advertising cash on a cross-platform creative project. "The interactivity was absolutely crucial: it was only by using advanced functionality and interactivity that we could truly engage our audience and demonstrate the product properly ... Lemon TV offered a very engaging and innovative solution."

The brief was to promote the new tools and functionality of the virginstudent.com offering. Working alongside renowned UK ad agency BMP DDB, Lemon TV developed a solution specifically shot and scripted for interactive platforms rather than re-purposed from linear TV.

The video is held in a branded rich media interactive template with a whole arsenal of interactive armour: as the ad plays, the images and text on the screen change relative to the video timeline. The viewer is able to click on areas of the video (hotspots), which open up specially designed web-pages enabling instant registration for the service as well as showing further relevant in-depth information . A hidden video hotspot rewards the viewer by showing a film of comedy outtakes from the shoot (which involved a troop of 12 stunt mice scampering around a studentßs bedroom). Layfield felt that this was a piece of programming, "which encouraged and rewarded our viewers for interacting with the brand message."

Where does the future of interactive programming and advertising lie? PVR devices allow you to choose not to view advertisements which bore, irritate or offer no rewards, and it seems that some are choosing not to click on old fashioned banners. So what next?

Technology developments increasingly point towards 'opt in' advertising and a massive shake up in the way in which Brands create their identities. As in mainstream TV, programme sponsorship is becoming more important as a means of getting brand message across õ it's a logical addition to traditional advertising. Brands can ally with programming which they feel best supports or reflects brand message and identity, and can offer commerce directly within programming (eg click on the characters' clothes to buy them or receive additional information on them). Lemon TV has been working with leading sponsorship experts and has developed short-form, sponsorable interactive packages attractive to all parties õ viewers, sponsors and broadcasters, which work brilliantly over the Internet where attention spans are notoriously shorter, as well as on iTV and straight TV.

"The fundamental rules haven't changed. Content needs to be engaging, just now it's on many more levels." says Perry. "It's key that these levels are thought about and integrated during pre-production, not as an after thought. Luckily our clients are forward looking enough to appreciate this."

* Simon Perry, CTO LemonTV, and Alison Curry, LemonTV