Rainbow Media, a subsidiary of Cablevision, has picked BlackArrow for a dynamic video-on-demand advertising trial that is currently underway.

Rainbow Media is using BlackArrow's Advanced Advertising system to determine how it can work across its multiple distribution partners to implement and operationalize, at scale, critical aspects of dynamic, addressable VOD advertising.

Cable operators have long sought to capitalize on the popularity of their VOD services by finding ways to monetize them.

"The ability of networks and operators to monetize on-demand television programming will have a direct effect on the value of VOD as an advertising medium," said Nick Troiano, president of BlackArrow. "As a leading content innovator, Rainbow Media is putting into practice addressable, measurable advertising opportunities that extend the value of premium content – while bringing advertisers and on-demand viewers together in an engaging TV environment."

Among the capabilities being explored during the multiphase trial are on-demand campaign management; creative rotation of inventory; real-time ad decisioning and campaign selection based on content targeting, viewed daypart, anonymous demographic data and other factors; and impression-based reporting.

"Given the dramatic increase in subscribers viewing on-demand programming, we are looking at ways to provide our advertisers with additional vehicles for building brands and driving purchases in this medium," said Dave Evans, senior vice president of broadband at Rainbow Media. "BlackArrow has been an important partner in our process, as we evaluate new ways to create incremental value for advertisers and increase the availability of premium on-demand programming for our viewers."

Roughly a year ago, BlackArrow announced it was working with Comcast on VOD ad insertion in the Jacksonville, Fla., market, but today's press release from BlackArrow didn't name any cable operators that were involved in the current trial.

As for the big picture, in May Rainbow Media – along with Comcast Networks, Discovery Communications and NBC Universal – signed a partner agreement with MSO-owned Canoe Ventures for the launch of interactive advertising applications.

Multichannel News reported yesterday that Canoe Ventures is taking orders for its request-for-information (RFI) overlays that launched earlier this summer. Rainbow Media's AMC is one of the networks that is running interactive ads for Canoe Ventures.