Disney sets up lab to test online adverts

   Date:2008/05/14     Source:

WILL people remember 3-second video ads on their mobile phones? Do high-definition commercials on big screens get people's hearts racing more than other pitches? Is the sports ticker crawl distracting or does it add value to a 30-second TV spot?

A laboratory in Austin, Texas, to be founded by The Walt Disney Co by the end of the year aims to answer these questions and more by testing the biometric reactions of a pool of up to 4,000 people to advertising that takes advantage of the latest technology.

In a controlled living room setting, scientists will measure heart rate and skin conductivity, and track the gaze of participants who are exposed to new ad models over the Internet, mobile devices and TV screens. The first results are expected by early 2009.

The media giant, which owns ABC and ESPN, is seeking to learn whether consumers are more engaged by new and interactive ads and ultimately if the company can charge more for them.

Disney was due to formally announce the formation of the lab to advertisers attending its upfront sales pitch for the coming TV season in New York yesterday.

"One of the reasons for engaging in an initiative like this is to determine, once and for all, if there is additional value," Artie Bulgrin, senior vice president of research and sales development for ESPN, said yesterday.

The sports media juggernaut says subscribers to its premium high-definition channels were economically better off and considers them more attractive to advertisers.

The lab will be headed by Duane Varan, executive director of the Interactive Television Research Institute at Murdoch University in Perth, Australia.

Varan said biometric testing helps cut to the heart of audience reactions to visual ads, which can sometimes be missed by focus group surveys.

"TV is not a rational medium, it's an emotional medium," Varan said. "We can get to a deeper layer of what's motivating people by seeing how they behave, observing them in experimental settings and seeing how their body reacts."

The initiative comes as media companies are struggling to recover from the 100-day Hollywood writers strike that depleted scripted shows and hurt network ratings.

It also affirmed the rapid growth of Internet advertising.

Disney chief executive Robert Iger said in March that the company expected to reap US$1 billion in annual online revenue by September.

"We want to drive developments in technology, advertising and serving the consumer, not react to them," said George Bodenheimer, president of ESPN and ABC Sports.

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