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Online TV Ads Doing Surprisingly Well

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You may not be too shocked to hear that networks have found themselves with lots of online advertising for sale.  What is surprising, though, is that this isn’t due to a lack of demand; it’s because networks have (in some cases) already fulfilled their first round of obligations.

Although normal television ads air for a prearranged amount of time (regardless of how many people see them), online ads work on a per-view basis.  Unexpectedly popular shows can, then, essentially “use up” a supply of ads.

Yet here’s another surprising point: David Kaplan discovered, “On average, according to TVWeek, the networks charge $25 per thousand viewers via broadcast, while the major nets’ broadband prices command $30 per thousand viewers.”

This oddity could have something to do with concentration.  People who are watching their televisions may also be cooking dinner, reading a magazine, or chatting on the phone.  People who are watching their computers are probably more likely to monitor (no pun intended) every single moment.  Advertisements might receive a little more attention as a result.

Not everything about these online TV ads is encouraging, however; given the looming effect of the writers’ strike, it’ll be interesting to see how long the trends can continue.



Online TV Ads Doing Surprisingly Well
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