[opendtv] Re: Bank Projects Broadcast Growth in 2010
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Mon, 2 Nov 2009 13:46:46 -0500
At 9:30 AM -0600 11/2/09, Manfredi, Albert E wrote:
Craig Birkmaier wrote:
Rather than stopping to watch the occasionally interesting ad,
wouldn't you prefer to watch one or two short ads that are targeted
to you, then the entire program UNINTERUPTED?
Of course, but I don't think that's an option. For ad-supported TV, that is.
Even the 5 or so 30-second ad interruptions you see now in the
Internet-delivered TV programs do not provide the networks as much
revenue as the ads on the regular stream. And I expect the cost of
creating a new ad, for each time you are interrupted by an ad, would
be prohibitive.
It is starting to become an option in the cable universe, and it is
likely to be the foundation of advertiser supported TV via the Web.
The issue is not the number of ads, or that they are completely
customized for you, although this IS a possibility. The issue is how
much an advertiser is willing to pay for an ad to a qualified
prospect. Your eyeballs are worth about 25 cents per half hour to the
TV networks; that is, that's about how much ad revenue they generate
per viewer. If an advertiser is willing to pay a quarter to deliver a
message to Bert, then you could watch a half hour of programming
without interruption.
With Red Box, this is probably comparable - i.e. you rent a movie for
a buck and typically several people watch it.
So the economics say that when it is possible to deliver an ad to a
targeted prospect, it is likely that the advertiser will opt for the
targeted ad. There is, however, one exception - "shotgun TV
advertising" is very effective in making large groups of people aware
of something new that they might or might not be in the market for.
But one a product is established, it is all about stimulating demand
among people who are viable prospects, and this is where targeting
adds value.
Regards
Craig
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