Online Ad Rates Higher On Certain TV Shows Than TV Ad Rates

from the go-simpsons dept

We were just being told by a supposedly respectable media analyst that things like Hulu were anti-American, because it gave away content for "free" and could potentially bring down the entire media business. Yet, it appears that media businesses are learning how to monetize that online content quite well. Bloomberg notes that for shows like The Simpsons and CSI, online ad rates are actually higher than TV ad rates. There are good reasons for this, including the fact that advertisers recognize viewers of shows online are more committed to the shows -- in that they actively chose to seek out and watch that show, as opposed to just having the TV on in the living room while doing something else. Also, people are more willing to watch those ads, in part because they're shorter and they don't have to watch as many to get to the content they want. Now, it is true that the number of viewers still represents a substantial difference and that media companies rely heavily on carriage fees from cable companies and the like. But the idea that ads can't support TV shows online doesn't seem to be based on anything in reality.

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Online Publishers' Solution To Falling Ad Revenues: Bigger, More Annoying Ads

from the sledgehammer-on-a-thumbtack dept

Things aren't looking good for the online ad market: reduced spending by advertisers combined with the fact that people don't pay a whole lot of attention to banner ads portends doom and gloom. While the first part of that equation might be out of online publishers' control, they're trying to tackle the second part not by recognizing that advertising needs to be engaging or interesting content in order to be satisfying, but rather by clubbing internet users over the head with some new, huge and intrusive banner ad formats. Say hello to the Fixed Panel, which is a huge vertical banner that "scrolls to the top and bottom of the page as a user scrolls", the XXL Box, which is pretty much exactly what it says, and the Pushdown, the biggest of the bunch, which rolls down from the top of the page to get right in the user's face. The trade group behind these new formats says they are "designed to help stimulate a renaissance of creative advertising on the Internet that meets the needs of marketers by better integrating their messages into the fabric of the Web." That sounds like a lot of buzzwords, but conspicuous by its absence is any mention of the user's experience of these ads. These ads might grab users' attention through brute force, but will the experience be a positive one? It seems likely that intrusive advertising that gets in users' way will simply make the current situation worse by driving users away from the content. This is a further reflection of just how dead the captive advertising model is. Consumers have plenty of choices about where to get their content online; if a publishers' advertising keeps getting in their way, they'll move on and get content from somewhere else.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Newspapers Finally Realizing That Online Ads Shouldn't Be Ignored

from the it's-a-little-late-for-this-epiphany dept

With the Christian Science Monitor going online only, many newspapers are again re-evaluating their online strategies. When you listen to newspaper execs, you usually hear the same line over and over again: even though online page views are up and paper sales are down, the amount of ad revenue coming from online is still tiny compared to print. That's definitely true, but a large part of the problem is that many newspapers don't really concentrate on online sales -- especially among the best targets: local businesses. Many small businesses advertise online, but because newspapers don't court them, they go elsewhere, such as directly to Google.

The NY Times is writing about how at least some newspapers are realizing that, rather than focusing their sales efforts almost entirely on print ads, they need to start focusing on selling online ads as well. Amazingly, many of these newspapers have almost all of their sales commissions for print ads. In those cases, is it any wonder that they don't get more online ads? In fact, many ad sales folks simply "throw in" some online ads as a bonus to get companies to sign the dotted line for print ads, which is exactly the wrong incentive needed if you're trying to grow the online ad business.

What's really amazing is that newspapers are just now catching on to this. They're only about five years too late. The local businesses, which would have been interested five years ago, have figured out that there are other options for online advertising from Google to "local" sites like Yelp and CitySearch.

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