BBC’s iPlayer service is wiping the floor with its rivals in the on demand TV market recording up to 500,000 programme downloads a day. 11m TV shows were streamed or downloaded through iPlayer in January in comparison to 2.7m for channel 4’s system 4od and 2m for ITV. The massive amounts of advertising dollars spent promoting the service have no doubt prompted its dominance but will also have given the on demand market as a whole a boost as people become more aware that you can watch your favourite shows from your laptop at any time of the day and night.
The opportunity and issue now facing BBC iPlayer is how to monetise this growing service without annoying its users. Advertising in online video files has been debated far and wide and yet the most appropriate format is yet to be decided upon. Pre-roll, post-roll and overlay are the main considerations with the option of mid roll placements as well but all interfere with the user experience in some way. The key is to strike a balance between the exposure of the ad and the interference with the viewing.
Youtube are still to achieve this and at a recent seminar they were still asking the advertisers what their preference would be for the ads. Youtube have gone with an overlay style ad for in video but admitted trialling preroll and post roll with both showing negative results. I wonder whether the BBC will be able to crack the code?
| Service | Unique streams Dec 2007 |
1 | YouTube.com | 20,207,947 |
2 | BBC sites | 5,129,442 |
3 | ITV sites | 1,727,567 |
4 | Channel4.com | 769,927 |
| Total Internet | 28,686,485 |