The iPod Now Poised to Revolutionize Advertising

The introduction of the video capable iPod heralded the change of a lot of things. Some of them are well down the road, like the TV shows that we al know about, then there is the less commonly known move made by several universities to place university learning materials on iTunes, some of it free for everyone to use, and now, the wave of changes has reached the shores of advertising.
Since Apple offers the video content on the iTunes Music Store free of any adds, advertisers are unable to just slap the same old adds bang in the middle and make more money out of nothing. And they are approaching the phenomenon with a fresh, new wind.

Some are still clinging to the old ways, attaching recycled TV spots to the beginning of video files and podcasts which are freely available from popular sites. While others have begun creating their very own podcasts to which to attach their commercials, which is mind-boggling, and blurs the lines between entertainment and advertisement.

"It's a lot of trial and error," says Liz Vanzura, global marketing director for General Motors Corp.'s Cadillac division.

And it's not just about experimenting, because a big issue is intrusiveness. While many people are used to being force-fed commercials every five minutes as the program they are trying to watch gets interrupted again and again, the Downloadable content will not allow such an approach. Imagine having commercials in the music you download… why would the reaction to video be any different? Advertisers have to design their ads so that they are less intrusive as possible.

On the other side of the barricade, there are still many that are yet unconvinced that the iPod should receive this sort of attention. Apple has not released the sales figures for the video capable iPod, but market-research firm NPD Group estimates that about 1.8 million of them have sold in the U.S. since they were launched in October. The device is still very new and not that wide spread, and at the moment moving towards advertising on it does seem like a rush move. However, in this era of finding alternatives to traditional ads, though, media buyers and marketers say they can't afford to ignore the new device. They point out how MP3-players changed the way people listen to music.

No matter how advertising on the iPod does turn out, chances are it will be a new breed of advertising… "Consumers have agreed to download your messaging -- they are agreeing to transact with you -- you have to be subtle and stop being used-car salesmen," says Greg Smith, engagement specialist at Carat Fusion, a media services firm owned by Aegis Group PLC.