Will Joost Change the Way We View TV?

By Peter Koeppel

The founders of Skype and Kazaa have launched a new web TV service called Joost (pronounced "Juiced"). They will be offering programming from networks such as MTV and Comedy Central and have already signed 32 blue-chip advertisers, including Microsoft, Motorola, Sony, Coca Cola, Taco Bell and Nike.

Joost will not be offering video clips like YouTube, but rather full-length, full-screen, high-quality content from major cable networks, Warner Music and a Dutch production company that produced the reality TV series "Big Brother." It will be set up to provide a very similar experience to the way consumers now watch TV. Consumers will be able to surf various channels and watch programming that lasts from a few minutes to over an hour, and it's free. "It's a competitor to cable television," according to Allen Weiner, an analyst at market research company Gartner, in a February 27 New York Times article.

ADVERTISING OPPORTUNITIES
Joost will offer 10- and 15-second ads that will run alongside programming. The service also will offer 5-second "Brought to You by..." ads. Joost will have interactive capabilities so users will be able to click for more information about a product on their platform, and they also will be able to go to the brand's website. "You're combining the rigor of direct marketing with the richness of the Internet and the entertainment of television," says Mark Renshaw, senior vice president of Arc, a marketing agency, who was quoted in an April 26 New York Times article.

Viewers will be invited to provide information about their interests, which will allow advertisers to send targeted ads to those viewers based on their interests and viewing behavior. According to an April 27 interview with MediaPost, Brad Elders, Joost's senior vice president, said the company is "going to be doing a lot of experimenting around [its] three core principles of targetability, measurability and interactivity."

Joost will allow marketers to take advantage of the power of TV combined with the interactivity and tracking capabilities of the Internet. It also will enable marketers to tap into consumers who are spending more time on the Internet. However, the cost of advertising on Joost will not be cheap. Marketers and advertisers will be charged a premium for the service, according to Elder. It's been reported that a three-month campaign will cost around $50,000.

Any media platform that enables marketers to more precisely target and measure consumer behavior is of great interest, since everyone is looking for more accountability from their advertising programs. The premium cost may not make it an ideal platform for direct marketers at this time, but it's something that needs to be watched closely as it evolves. The people behind Joost appear to have the resources. After all, they sold Skype to eBay for $2.6 billion, and have the advertisers and the track record to pull this off. Now, let's see if consumers are ready to watch full-length TV shows on their computer.

Peter Koeppel is president of Koeppel Direct Inc., a full service media buying agency based in Dallas. He can be reached at (972) 732-6110, or via e-mail at pkoeppel@koeppelinc.com.