Internet TV The global audience of Internet TV is getting another provider to be taken seriously: Joost interactive television. Joost has the same pronunciation as "jouced", which means "drunk". In fact, on Joost you can theoretically watch yourself drunk on the mainly English-language TV merchandise offered so far in 150 channels - provided you have the necessary broadband connection. Joost is the new project of two Internet pioneers, Janus Friis and Niklas Zennstrom, who previously established the telephone service Skype and the peer-to-peer (P2P) music sharing service Kazaa. This P2P technology is also used for Joost, although new users can currently only gain access by invitation from an already accepted user, but this is free of charge. The service is also expected to be made available to the general public later this month.
The content on Joost is based on agreements with media producers such as Time Warner, Turner Broadcasting, Sony, Hasbro, National Geographic, the National Hockey League, Endemol, CBS and Viacom, which supply series such as "CSI," "Survivor," "Charlie's Angels," "Starsky & Hutch" and the "Larry King Show. It didn't take long to persuade the media conglomerates to join in. "I think we're in a transitional phase in which the networks no longer see the Internet as just an experimental area, but are consciously planning it as one of their sources of profit," says Joe Laszlo, a technology analyst at market research firm Jupiter Research.
According to the creators, the multimedia possibilities offered by Joost are intended to appeal especially to the coveted young audience. Users surf through the channels with the help of a personalized navigation bar on the screen, and because they are online, they can also send text messages, download games, hang out in chat rooms or maintain their music playlist while watching TV. E-commerce is also to be made possible.
Three minutes of advertising per hourJoost is particularly interesting for the advertising industry: because the company concluded cooperation partnerships in Europe and around the world from the outset, it can now call itself "the first global TV distribution platform online". For this reason, even before its launch at the beginning of May, 32 major marketing companies participated, including Coca Cola, Nike, HP, Visa, Microsoft, T-Mobile and Nokia.
Just as with advertising-financed television, Joost will also integrate advertising clips into individual broadcasts, but these are to be limited to three minutes per hour. In the U.S., the project's main market to date, marketing companies will pay between $50,000 and $100,000 for advertising on Joost during the initial three-month test phase. The highlight for marketers is the ability to personalize advertising. Users interested in seeing advertising clips tailored directly to them are encouraged to provide information such as their zip code, gender, income and personal interests.
Joost already works with more than twenty agencies that bring innovative concepts to their clientele. Arc Worldwide, for example, which belongs to Leo Burnett, designed so-called contextual advertising for Nestlé-Purina and United Airlines under the aegis of Senior Vice President Mark Renshaw. Instead of interrupting ongoing broadcasts with commercials, this uses a "hand-raiser," or logo in a corner of the screen, that viewers can click on if they're interested and see more info about the product. Using this technology, the user can also be directed to an entertainment show that provides playful information about the Purina brand. "Joost combines the different marketing capabilities of digital platforms: dynamic content, direct marketing, creative and entertainment," says Renshaw.
Although Joost has been praised by industry watchers for its good timing and professional approach, the project could soon face market realities, according to James McQuivey, digital media analyst at research firm Forrester Reseach. "Content companies are showing their shows not only on Joost, but also on other Internet TV services such as AOL or YouTube, as well as their in-house websites," he says. Large corporations such as Toyota or P&G would therefore do most of their advertising deals directly with corporations such as Viacom or Sony rather than with Joost. He sees better business opportunities for Joost in less saturated regions of the world than the U.S., where content providers love to distribute their content through Joost. "I don't think Joost will become the TV platform of the Internet par excellence."
Gerti Schön
"The only limit is creativity "Eric Clemenceau
, Vice President of Advertising in Europe and Asia at Joost, about advertising on the new platform. WW: The contracts Joost currently has with marketers provide for a test period of three months. Eric Clemenceau: During the test phase, we want to give advertisers and agencies the opportunity to test a range of different formats that combine the best elements of a traditional TV spot in terms of sound, image and motion with the interactivity, targeting and measurability of Internet advertising. We are testing spots in 10, 15 and 30 second lengths and a range of interactive features. We've also introduced what we call the "introstitial," which is a short message at the beginning of a broadcast introduced with the words "brought to you by." WW: Which forms of advertising are the contractors most interested in?Eric Clemenceau: They use innovative formats such as links to long-form advertising or entire shows dedicated specifically to a product. In the testing phase, we try to find out what works best for our clients and their agencies, there are no limits. The only limit is creativity.WW: Are there different advertising strategies between the U.S. and Europe or globally?Eric Clemenceau: No, we've found that our viewers around the world appreciate our advertising features. We combine the best that television and the Internet have to offer.WW: Will there also be entire channels sponsored by companies?Eric Clemenceau: We are exploring a number of different advertising platforms, including sponsoring entire channels.
Interview: Gerti Schön