Television Commercials Moving to the Web

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Up until recently, the basic 30-second commercial spot on television was viewed as the no-brainer knock-out punch. It was the most obvious way to make the biggest splash in the minds and behaviors of consumers. In some ways this is still true today. Running TV commercials for movies, for instance, still makes a significant impact on viewers. But with the rapid growth and evolution of the Internet and with the increased mobility of consumers, it’s apparent that advertisers are being forced to consider other means of reaching their target audience.

Last week, throngs of television network execs, media buyers, agents and advertisers assembled in New York for the annual “upfronts,” where networks unveil their fall programming in hopes of selling the commercial spots that will be available during these shows. During the gathering, words like “extension,” “engagement,” and “Internet iterations” were thrown around, emphasizing the understanding that the Web will play a bigger part in advertising campaigns.

Extensions include additional content from network shows that are supported by ads that run before and after the content runs. For instance, a preview of a show’s episode to air next week can be viewed on a consumer’s mobile phone. However, the consumer would have to watch a short ad before the preview starts, and after the preview ends. The viewer will not have the option to skip these.

Engagement is the concept of carrying over viewers of television shows onto the networks’ Web sites, which enables them to reach them where they live and work, and is an attempt to skirt the growing issue of viewers skipping commercials with the power of TiVo and other digital video recorders.

Internet iterations are all of the platforms that a network can offer advertisers in order to allow them to reach their desired target audience. These include Web sites, downloads, mobile content, and podcasts. This way, advertisers will not only have the option of a 30-second spot running during the show along with product placement in the show itself, but will have all of the network’s Internet iterations available as additional means through which they can reach their consumers.

Networks and advertisers have already begun their foray onto the Web. ABC’s hit show “Lost” has already made exclusive content available through mobile devices, and has used “The Lost Experience” game to channel unique content and advertising to fans of the show. The alternate-reality game makes use of a variety of Web sites related to the show to give fans clues about the show. The game also includes subtle advertising by companies such as Sprite and Jeep.

CBS is going to run a new show called “Jericho” in the fall, and the writers and producers have taken a unique approach to creating the show. “Jericho” will have two story lines: one will be strictly for television viewing, while the other, called the “D” (for digital) story line will appear only online. The latter will also be used to bring in advertising revenue through the show’s Web site and cell phones.

NBC will launch a “Law & Order: Criminal Intent” game that will give fans of the show clues about the case that will be shown on that week’s episode before it even airs. The objective is to solve the case before the characters on the show do.

With 17% of all households in the U.S. now connecting to the Internet with high-speed connections, networks now have the viable option of offering streaming video on their sites, a way to connect with viewers and consumers that was not readily available when most households were still using dial-up connections. However, this also means that networks are still green to the whole process of choosing the best digital ad platforms.

“It’s a new world,” said president of advertising sales at CBS, Jo Ann Ross. “There’s a lot of experimenting.”

The Internet gives networks and advertisers a more targeted approach to reaching their viewers and consumers. The 18 to 34-year-old demographic is known to be the hardest to reach, making them the target of big shows such as “Grey’s Anatomy” and “American Idol.” Commercial spots on these shows can run up to $2 million for a 30-second spot during a finale.

The reason for the difficulty in reaching this age group is the fact that they are very mobile in nature, usually on the go and not really turned on to the idea of sitting at home watching TV and sitting through traditional commercials. The Internet and mobile devices present a solution to this issue, as these media meet the eyes of the demographic where they are.

As television networks and advertisers integrate the Internet more and more, consumers will enjoy exclusive and unique content at the cost of being bombarded with additional ads. Will the tradeoff sit well with consumers? So long as the content being offered is satisfying enough, the answer so far seems to be a resounding “yes,” which is great news for networks and advertisers alike.

Source:

http://www.washingtonpost.com/wp-dyn/content/article/
2006/05/19/AR2006051901712_2.html

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