Comments on: No big money in online video ads… yet

By: Troy Hanford

Troy Hanford — Sun, 18 Feb 2007 16:50:36 +0000

I like the CPM analysis. But, let put a different spin on ABCs efforts…. 1) they had the content already, 2) since the average viewer only watches 3-4 minutes per experience, the cost for streaming is very very low (probably less than $20,000 mer month). So, they are making $1+M net a year with this one aspect of their online services. And, it promotes and draws customers into the their prime distribution outlets, which should be worth something too. Maybe $1M net is crumbs to some, but I think your math will draw people in….

By: Drew Robertson

Drew Robertson — Fri, 16 Feb 2007 20:20:41 +0000

I think Friedman’s analysis shouldn’t be construed as a slam against online video. But it is a slam against VOD clips with prerolls, postrolls etc. VOD is a whole new way of looking at video which the networks and ad agencies haven’t figured out yet. I don’t think VOD will ever be as big a traditional TV. HOWEVER when linear TV is up and running on the Internet, the math will change quickly. Not pie. Maybe brownies.

By: Rocker

Rocker — Fri, 16 Feb 2007 20:00:56 +0000

People said the same things…did the same kind of math…back in the mid-late ’80’s when cable was just gettng started. I do agree that ultimately professionally-produced content is always going to dominate viewing, and therefore advertising. That is not to denigrate the importance of the long end of the Long Tail…just to keep it in perspective though.