ABC's ad-supported online videos
For those in traditional media, adjusting practices and content to the digital world requires a pioneering spirit. Interactive media is still so young that, for many companies, doing something online is still synonymous with doing it first.
For television networks, this is especially true. Issues such as piracy, digital rights and cannibalization of TV viewers inspire great concern. With those issues in mind, ABC caused a stir when it made prime-time shows available on its web portal in May 2006. Rather than charge on a per-download basis, ABC tested the use of streaming ads. According to surveys, 87 percent of respondents could recall the advertisers that sponsored the episodes they watched at ABC.com. In comparison, recall for standard ads on TV is around 40 percent. With that level of success, ABC is expected to continue offering ad-supported shows online, and other networks are sure to follow.
Why it's important:
- Online video advertising appears to be incredibly effective, although time will tell whether execution, novelty or other factors made ABC's initial test results unique.
- Marketers willing to test the online video advertising waters may be able to grab some fantastic deals while networks and advertisers are still attempting to decipher the power of online ads.
