Marketers' rapidly growing interest in broadband video advertising is of great concern to cable companies that have made large investments in video-on-demand technologies, writes AdAge. Digital media specialist Pat Dunbar, who formed the cross-industry IDIA group through her own consultancy, Dima Group, said advertisers need to help define the future of VOD. "One piece of advertising is 'Where is my customer?' The other is 'What's the overhead to reach that customer?'" she said.

She predicts that competition between platforms such as broadband video, cell phones and cable VOD platforms will start to heat up.

U.S. households watched 1.6 billion hours of ad-supported broadband video content last year. Current ad spending on broadband video is on track to hit $375 million in 2006, according to the Dima Group. There were 141 million broadband views in December, 2005.