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Will Joost Change the Way We View TV?

Published: 06/07 ERA

 

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. They have lined up 32 blue chip brand advertisers such as Microsoft, Motorola, Sony, Taco Bell, Coca Cola 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 "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. NY Times 2/27/07.
 
Joost will offer 10 and 15-second ads that will run alongside programming. Joost will also offer 5 second "Brought to You by..." ads. Joost will have interactive capabilities so the user will be able to click for more information about a product on their platform and they will also be able to go to the brand's website. "You're combining the best of the rigor of direct marketing with the richness of the Internet and the entertainment of television," according to Mark Renshaw, senior VP of Arc, a marketing agency, who was quoted in the NY Times on April 26, 2007.
 
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. "We are going to be doing a lot of experimenting around our three core principles of targetability, measurability and interactivity," according to Brad Elders, Joost's senior VP, in an interview with Media Post on April 27.
 
Joost will allow marketers to take advantage of the power of TV combined with the interactivity and tracking capabilities of the Internet. It will also 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. Joost intends to charge a premium for their service, according to Elder. It's been reported that a three month campaign will run around $50,000.L
 
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 program. 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; they sold Syke to eBay for $2.6 billion, 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.