Cox Media Announces Results from First Ever Video on Demand Advertising Trial
Business Wire
Atlanta, GA
NYSE:COX

ATLANTA--(BUSINESS WIRE)--Oct. 13, 2003--Cox Communications' advertising solutions division, Cox Media, today announced findings relevant to the advancement of new media advertising. One year ago Cox Media launched FreeZone, the first-ever video-on-demand platform for advertising and ad-supported content in Cox's San Diego market. Today the company released research findings on the medium, which will contribute to the advancement of new media advertising.

FreeZone offers an array of ad-supported free entertainment, long-form "advertainment" and commercial information, that can be viewed on-demand with full VCR-like functionality (pause, rewind, fast forward). The on-demand advertising platform also includes permission-based follow-up interaction between advertisers and viewers who respond using their remote control.

"Traditionally, television advertising has been a 'push' marketing medium, distributing information to as many people as possible," said Billy Farina, VP of Cox Media. "With Cox Media's on demand platform, advertising is offered in a 'pull' environment, with viewers choosing what information they are interested in."

On-demand and long-form advertising enables in-depth brand storytelling and facilitates brand relationships with viewers through interactivity and time spent with the messages. Through the San Diego trial, Cox Media learned new ways to measure advertising more effectively.

"With FreeZone in San Diego, we found that consumers will choose to watch long-form advertising in an on-demand environment. In fact, over two million videos have been accessed since FreeZone's launch," said David Porter, director of new media advertising for Cox Media. "About 50 percent of the San Diego digital audience accessed FreeZone during our pilot period and usage has remained steady for more than a year now, with an average of 3.76 videos accessed per viewer per week."

Another major finding was the duration of time spent with in-depth advertiser content. Each unique viewer spent approximately 25.5 minutes per week viewing advertiser content. "Depth and duration are the new significant metrics emerging," said Porter. "When people can choose the content that is relevant to them, they respond and spend time with the brand and message."

The value of depth and duration was uncovered in a study conducted by third party research firm Frank N. Magid Associates. They found that the viewing of FreeZone content had a positive impact on both viewers' perceptions and their ability to recall specific advertisers and their products.

"On-demand advertising offers marketers a unique opportunity to not only raise brand awareness, but also increase positive brand dimension," said Jodi Gusek, PhD. Executive Director Emerging Media Research, Frank N. Magid Associates. "This long form advertising on demand content has the potential to be more involving than standard spot advertising. Our research shows that viewers of FreeZone advertising have higher brand recall than non-viewers. In many cases, viewers also report more positive brand attributes to FreeZone advertised brands."

The on-demand advertising platform offers television advertisers a way to reach their marketing objectives in a way that traditionally could only be achieved through multiple media. Primary among these are the ability to convey complex and detailed information, and the ability to generate qualified leads with permission-based direct response.

"The average response rate for FreeZone advertisers was 4.4 percent, almost double that of a traditional direct mail piece. In fact, one advertiser had to discontinue its offer after just a few weeks because the double-digit response rate exceeded their expectations, and their ability to fulfill the offer," said Porter. "And participation in opinion polls averages near 26 percent."

"Cox Media is committed to putting innovative technology to work for our advertisers," added Farina. "We will continue to explore ways to bring smarter advertising to our clients every day."

Cox Media, a wholly owned subsidiary of Cox Communications, Inc., is one of the country's largest cable television advertising sales organizations, reaching more than eight million subscribers. The first to commercially deploy digital program insertion and on-demand advertising, Cox Media uses advanced research and media planning, customized promotions and state of the art commercial production to help businesses connect with their audiences. From broad reach on highly rated programs to laser-sharp targeting of specific audiences, Cox Media provides more choice, better value and smarter advertising solutions to its clients. More information on Cox Media can be found on the Internet at www.coxmedia.com.

CONTACT: Cox Communications, Inc., Atlanta Laura Oberhelman, 404-269-7562 SOURCE: Cox Communications

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