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Advertising on broadband platforms can be just as lucrative as traditional television advertising as marketers continue to find new ways to tap into sponsorship and promo opportunities on emerging platforms, according to a report to be issued today by Nielsen Analytics.
The study, entitled “Whatever, Whenever, Wherever: How Broadband Is Redefining the Economics of Television,” contends that as marketers continue to learn how to use the Internet to their advantage, broadband video advertising can actually be a more effective way to reach consumers than traditional ad models.
“The study concludes that programmers have the opportunity to create new revenue models to benefit content owners and their affiliated stations,” said study author Larry Gerbrandt, head of Nielsen Analytics. “With broadband streams, for example, fast forwarding through commercials can be disabled making it more likely the consumers will watch the spots and possibly interact with them.”
The interactive nature of the Internet also allows marketers to experiment with different ways to advertise and connect with their audience, said the report. The study mentions that marketers have had success with Google-owned YouTube and News Corp.’s MySpace, in particular.
“Ad models can be customized and managed in a broadband environment,” Gerbrandt said. “Interactivity can be embedded into the program in such a way as to enhance engagement which does not take viewers away from the enjoyment of the program.”
At the same time, the study affirms that viewing video on broadband platforms has not come at the expense of traditional TV watching for many viewers. Household television usage has climbed consistently by more than an hour per day during the past decade, peaking at an average of more than eight hours a day during the 2005-06 TV season.
Nielsen Analytics is owned by Nielsen Co., the parent company of The Hollywood Reporter. The study was completed in partnership with Scarborough Research.
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