Advertisers (Finally) Turn To Online TV Commercials

Television commercials have been the 800 lb. gorilla of the creative advertising world for fifty years. There are a number of reasons why companies spend the vast majority of their media dollars on television, but one of the biggest is tradition. Put simply, television advertisers are comfortable with the medium. It gives advertisers unprecedented reach and frequency and enables them to emotionally connect with audiences in just 30 or 60 seconds.

For a couple of years now, mainstream advertisers have viewed the Web as little more than a direct response medium rather than as a branding one. Online publishers had done little to dispute that until fairly recently (see our archived article, “Web Advertising - Making a Case for Branding”). Now, with more advertisers realizing that the Web can be a viable channel for branding, online brand extension is a hot topic. Enter the online TV spot.

Advances in streaming media will likely mean that 2002 will see an increase in advertisers showcasing their 30 or 60 second TV commercials online. CBS MarketWatch anticipates that 75% of the ad campaigns run on their site in 2002 will incorporate some type of TV ad. They’re not the only publisher looking to cash in. The New York Times, AOL, Los Angeles Times and The Wall Street Journal have already begun accepting online TV commercials in lieu of traditional banners. Big name advertisers experimenting with using such online TV spots include Lexus, NYSE, and major motion picture studios. More are expected to follow.

How It Works

Using Java to stream the commercials over the Web, media companies like EyeWonder and Klipmart have made streaming technology accessible to over 90% of the online population.

Here’s how it works: ads begin as soon as the page is loaded. The video can appear in a stand-alone box, a pop-up, or even be integrated into a banner, skyscraper, etc. Now that there are major publishers willing to accept these ads and technology that enables them to be viewed easily, advertisers are finally able to communicate emotion while still achieving their coveted reach and frequency…and with two added benefits: lower costs and targeting, both of which impact an ad campaign’s ROI.

The Benefits of Streaming TV Commercials

• Economical - given today’s tight ad budgets, advertisers can save money by repurposing their existing TV commercial for use on the Web. Doing so will save money both on production costs (you don’t need to make new creative for the Web) and on media costs (online media is vastly more affordable than television).

• Emotional response - TV commercials are beloved by advertisers for their ability to elicit an emotional response in the viewer. TV commercials make us laugh, cry and think. Online TV ads can bring emotional response to the Web.

• No plug-ins or downloads - newer streaming media technologies don’t require the user to do anything special before seeing these online TV ads. The ad is a seamless part of the page, which is critical for both publishers and viewers.

• Attention-grabbing - in order to be effective, online advertising needs to become more entertaining. Savvy surfers have become so bored with banners and buttons, they scarcely notice them on the page. Entertaining ads capture people’s attention and help build brand awareness.

• Gets mainstream advertisers online - TV is understood by big brand advertisers. They understand how to produce it, how to run it, and how to measure its effectiveness. By making it *easy* for these advertisers to get online in a way that makes sense to them, streaming media can potentially give the entire online ad market a boost.

• Targeting - unlike TV, which is a more general medium, the Web can offer advertisers very detailed targeting, an important component of improving ad effectiveness.

The fact that mainstream advertisers are testing the waters by putting their TV spots online suggests that some are beginning to see online advertising as more than a direct response vehicle. Hallelujah!!

Related Links:

EyeWonder

Klipmart

WebAdvantage.net archived articles:

“Web Advertising - Making A Case For Branding”

“Streaming Media As A Marketing Tool”

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