Two quotes about IPTV content delivery and marketing from the past week caught my attention and I need to determine if a reality check is in order.

The first was the New York Times article, "Google Joins Viacom in Web Test of Video Ads" (purchase required). In addressing their plans for distributing limited programming content on third-party sites, such as "SpongeBob" and MTV's "Laguna Beach", "Viacom indicated they will have to approve each site that uses its content, and it wants only sites with at least 100,000 viewers a month".

The second quote was in the August issue of OMMA, entitled "TV and Web Merger in Texas" (registration required). In the article about Verizon's FIOS offering, programming director Walter Delph said, "We see being able to market down to the smallest possible niche, to groups as small as 100 customers".

I understand the former statement was discussing a rev share model with third-party sites and the promise of enabling profitably for all players. The latter statement about Verizon's delivery to small groups of viewers was exclusive of Internet sites, granted. However, what bothered me is this: why does Verizon see the value in micro-group content delivery and marketing and Viacom and Google do not? Has the floor been set at 100,000 users because it is simply not profitable to cater to less? I have not seen any studies to quantify that number, so what about Indie producers who want to boot strap themselves, will they be able to do it based on the Google/Viacom model?

This is where I go a bit off the reservation of IPTV technology, trends, and the user to address broadband Ad placement. Now, I am not an Ad guy and I don't play one on TV either, but I am a consumer, so here goes.

In the July, issue of OMMA entitled Broadband Bonanza (registration required), Jonathan Blum wrote about the concerns and issues of Ad placement for campaigns. Of note was a section on the "leap of faith" advertisers must take and how buys are charged at a premium even though it is unclear how engaged the audience is.

Ok, here is my through line.

Take the hit HBO show Entourage; they know how to create community and get the audience engaged. There is even a Myspace page and contest. Deep Focus created an interactive with Ari interviewing would-be assistants - it is well-produced and engaging. There are even user-generated versions of the show. All of this speak to the show's loyalty and its ability to be viral!

The article went on to say, "' It boils down to paying for the option of getting the consumer when they are leaning forward and doing something just before they lean back to watch a clip,'" says Arthur Chan, senior vice president Palisades Media Group, a Los Angeles-based agency. "'Because no one knows how to measure broadband television advertising's effectiveness, questions linger.'"

I know that Neilson is planning to measure DVR usage patterns, and I'd think Broadband would be a ripe area to quantify. Back to my idea: I added a TV set in Ari's office, (below) which seems more in keeping for him than a plant however, why not make that set functional with a pre-roll spot, or perhaps one that plays in the middle which he references as part of the story line, for example.

Part of the story
Certainly, the Deep Focus produced interactive video accomplishes that. However, beyond this a spot could be woven into the story -- remember the spot for a Japanese energy drink that Vince starred in?) A sponsor's Ad could be written into the story line for a show as part of an implicate placement without compromising the integrity of the writing.

Make it interactive
Allow users to click on the Ad, which would take them to a micro-site within the HBO page or the sponsor site for more information and hopeful conversion.

Contest for user-generated content
Just as Current TV's V-CAM seeks user-generated spots for well-know brands, shows could employ this sort of user participation into the mix.

Image © 2006 HBO

When I read about the problems with getting the viewer involved and into action, I think there are ready solutions that can be incorporated into the story line. Is Entourage so unique that other shows cannot leverage these interactive tools to engage and thus reach the audience?