Internet Television Advertising(Network TV)
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(Above is an example of a pause add commonly used be the viewer initiates a pause.)

Overview:

From the beginning, Television has made historic and hit programming. In early 2008 many network television channels began to broadcast there hit shows newest episodes online. Now anyone can catch up on their favorite network’s shows by just going on the internet. Exposing an entire new way to advertise. Internet network television advertising gives companies a fresh way to directly target their audience. Since the advertisers already are familiar with the viewers of the show they know exactly what types of ads to run. Network channels such as ABC, the CW, FOX, Disney and NBC have all put their prime television shows online. Allowing sponsors to run their ads during the episodes. During each view the episode is paused usually for a 30 second commercial called an ad pod. If the advertisement is not an ad pod it is usually a pre roll card (which is an ad that is played right before the video begins.). Another common ad that is used especially by ABC is a pause ad. A pause ad is seen when the viewer pauses the episode and is shown until the viewer presses play. This new way of advertising gives brands a whole new way to reach their audiences, with the security of knowing their audience is being exposed to the advertisement



(Above:An ad pod type commercial that would be seen during an intermission of a show)

Advantages/reasons to use Internet Television Advertising (Network TV):


In the past couple of years Internet advertising has hit an all time high. Network advertising on the internet is sky-rocking drawing in all sorts of companies. In the second half of 2010 network display related advertising accounted for $2.2 billion of the total revenue according to the internet advertising bureau. Chris Crum a reporter for webpronews.com said in an article that “online television advertising is much less ad heavy”, meaning there is less competition online, since there aren’t 7 different ads at once, which is a great reason to use this kind of advertisement. Internet advertising for network television not only is targeting but has the advantage of ensuring those who see your ad will buy it. One of the main advantages to network advertising online is that during the episodes the viewer has no choice, but to watch the advertisement. They cannot fast-forward or skip over it. Even if the advertisement is muted they are still watching it. Giving the advertiser the opportunity to really grab the viewer. Another great advantage advertising online with network channels is, the viewer is familiar with NBC and Disney, they have been watching commercials with these channels on cable television for years and trust the advertisements on these networks.

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(Above is an example of clutter on the CW's website making it hard to focus on the advertisments.)

Limitations:

Even though there are many advantages for companies who advertise on internet network television, there are also some disadvantages involved. Disadvantages of advertising online include: measurement problems, audience characteristics, web snarl, and clutter, potential for deception, costs, limited production quality, poor reach and lack of Intrusiveness.There is also the disadvantage that all commercials are limited to 30sec with a 15 sec minimum and in the near future advertising on network internet television might become overwhelming to the audience and discourage people from watching thier favorite episodes online.


Costs:

The cost of advertising with online network television varies depending on the networks website and the type of advertisement being used. For example ABC or Disney would cost more than advertising with the CW network because the shows on ABC.com are more popular than the ones on the CW. More often than not company’s and advertisers use CPA. A Cost Per Action or CPA also known as Pay Per Action or PPA) is an online advertising pricing model, in which the advertiser pays for each specified action




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Reach/Frequency:

The reach on advertising with internet network television has significantly increased since the episodes were first aired online. Since more and more viewers now know they can watch their episodes online they don’t bother watching them when they are aired on television. Viewers are being reached much more because advertisers know who is watching and how they can reach them.Disney for example each week 3.2 million and tweens plus 2.4 moms tune into watch Disney episodes onlineThey now have the advantage to know the viewer has seen the commercial because the commercials in the episodes are unavoidable.


With this type of advertising the frequency is high because usually during an online episode the same advertisement is replayed multiple time within the duration of the episode. This higher the frequency because even though the viewer might be annoyed they are seeing the same thing they will remember what they saw since it annoyed them.


Scheduling:


The scheduling for this type of advertisement is perfect because their isn’t a need for a set schedule. The advertisements are run whenever the episode is played if the episode is paused so are the advertisements ensuring the viewers see the ads. Even though not confirmed by any network, companies might throw in extra advertisements during a show they know will have more views. For example the series finale of Lost or Smallville. People who missed it or want to view it again will definitely be watching more than another episode of that season. Giving the companies incentive to add more advertisements.


General Impact:


In general the impact of this type of adverting hasn’t been huge. People are reached by the advertisements ,but aren’t very impressed. Viewers are excited about the fewer shorter commercials, but still don’t get excited to see them. Since the different types of advertisement used aren’t fresh and different people are stunned by them.

Audience:
The audience of this non traditional advertising is very broad and ranges from young kids to abou40 years old. Since networks like Disney and ABC use this type of advertising really the audience is anyone whose show is online. Companies realize the audience is so broad and run commercials that would appeal to all audiences. Like Listerine and Cell phones. Older people do get exposed to this type of advertisements, but only if they are internet savvy. They might think it’s unnecessary to watch their shows online when they could just watch them when they are aired. This is probably why the types of advertisements aren’t targeted to an elderly audience. It could, but less likely is the opposite when elderly people think it is hip to watch episodes online and watch all their television online.



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Success:

When the season’s premiere of Lost; the final season aired it drove recorded online viewing at ABC.com according to webpronews.com. With over 580,000 episode starts on the site it was over 34% more than the previous season's premiere. Meaning the commercials during that episodes were viewed 34% more than the previous season. According to Chris Crum,a reporter for webpronews.com " On Abc.com's full episode player features interactive video advertising Lost episodes currently feature a single national sponsor. They have 4 30-second spots which can't be skipped; additionally the local ABC affiliates sell one local spot per episode. We won't be able to compare Lost episodes from this season with episodes after the Nielsen stuff goes down, because this is the final season of the show, but it is going to be quite interesting to see how advertising on popular shows changes, if it does in fact do so.”This type of new media is being raved about and is definitely successful.




Responsiveness of the audience:

Awareness and desire are definitely the type of media this type of advertisement generates. For example if a Lean cuisine commercial is shown, the advertiser wants you to crave a lean cuisine. It also exemplifies awareness because the company wants to spread awareness of their product.

Fun Facts!:

Internet network television advertising isn't very exciting because you pretty much expect the same thing,but it doesn't mean it does have some fun information.One interesting fact of the type of emerging media is that these advertisements shown are only shown on the internet.A viewer would see these advertisements in a magazine or on the television. Another fact is that the commercial advertisements are shorter so you can enjoy your show without a long interruption.

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Who is using this type of emerging advertising media?:
The advertiser that use this type of media are usually known names that people are familiar with.For example one of thier biggest companies that advertise with these networks in Blackberry.They constantly run ads on Abc.com.Usually though the companies are loyal to who they advertise with.A company wont work with more than one network because of legal reason and contracts they sign.T-mobile is an exception they advertise with The CW and with Disney.com.Others advertisers are Listerine,Verizon,Windows and so on.Most companies are ones that appeal to everyone.
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References:
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  • James M. Smith

VP National Advertising Sales
5161 Lankershim Blvd, Burbank, CA 91505
james.smith@disney.com

< http://mediakit.go.com/contact.html>
  • Tuten, Tracy. Advertising 2.0:social Media Marketing in a Web World. NY, 2008. Print.