Online TV Ads Doing Surprisingly Well

    November 27, 2007

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.