April 13, 2008
TV networks seek formula for online ads
A good article from the Associated Press on how networks are trying out new advertising ideas for their content online. Their challenge "is to grow viewership online without cannibalizing traditional ratings and DVD sales while making more money on programming seen on the Web."
Some interesting figures mentioned... Networks now charge more per thousand viewers online than they do over the airwaves, where the average for a primetime show is about $25.
"For an advertiser, you're getting a clear performance result," said Bob Davis, a Web investor and former CEO of search engine Lycos. "No matter what the click-through (rate) they get, it's infinitely larger than the click-through they get on TV. The click-through they get on TV is zero."
ABC, which streams "Lost" and "Desperate Housewives" on its ABC.com site after airing on TV, is aiming to tweak its formula to make its online ads as lucrative as its TV ones."
Image above left: is from an episode of the CBS series, the 'Big Bang Theory.' CBS Corp. executives faced a challenging reality last fall before the debut of 'Big Bang Theory': TV viewership was flat. So the network debuted the show in its entirety for a week online despite risks that the giveaway would sap viewership for the TV premiere.
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