The Phase I of the Advanced Advertising Media Project (AAMP) has revealed that despite there being great opportunities for advertising within free video-on-demand services, a number of key issues still need to be addressed. AAMP Phase I has revealed reveals prevailing sentiments about VOD in particular the overarching belief that free services have the potential to play a unique role in the television ecosystem as a platform for relationship marketing between advertisers and consumers. These central findings were among the baseline needs identified for VOD television programming to achieve its potential as an advertising medium. The research points to a continued horizon of expectations regarding VOD, including a role for the platform as a bridge that connects linear TV and online TV environments. Yet the industry thought that VOD needs to be packaged as a product, and marketed to both advertisers and consumers in new ways that highlight the unique qualities of the VOD medium. The research also revealed that long-held attitudes and perceptions remain that VOD is a medium full of potential, but hampered by a lack of established business practices. At the same time, respondents were definitive about VOD’s massive opportunity for growth and viability as an advertising platform. Metrics that approach established measurement tools already in use within the industry were identified as critical to helping advertisers understand the value of on-demand placements. Yet the respondents to the survey added that full-scale research was required to gauge consumer awareness and usage of VOD, as well as reactions to advertising in a VOD context where little visibility exists today. “There was a clear sense among all participants in the study that VOD offers unique strategic advantages to service providers, programmers and advertisers,” revealed Mike Donahue, executive vice president of AAMP co-founders the 4A’s. “At the same time there was widespread affirmation that VOD is advanced television - not simply an alternate form of Web-based video, and as such requires specific agency approaches that maximise its value to consumers and the media industry.” Companies participating in the survey were A&E Television Network, Cablevision-RASCO, CBS, Combe, Comcast, Digitas, Discovery, FOX, General Motors, Interpublic Group (IPG), Mediasmith, MediaVest, NBCU, Rainbow Media and Starcom.