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03 Sep 08
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Mr. Hallerman pointed out that most TV ad spending numbers do not take product placement into account either. eMarketer measures pre-rolls and other ads that look like TV ads online.
Mr. Hallerman said product placement should be counted, perhaps as a separate category. -
That suggests the size of the Web video economy is being underestimated by the amount of ad dollars flowing into high-profile Web shows such as NBC-backed “Gemini Division,” EQAL-owned “LG15: The Resistance” and Revision3’s “Diggnation.”
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That’s a problem because they generate most of their ad revenue from brand integration and host shoutouts, as do many Web studios including Next New Networks, Revision3, ManiaTV and For Your Imagination.
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“The vast majority of revenue we derive for our shows are from brand integration,” said Greg Goodfried, one of the executive producers of “LonelyGirl15” and its spinoffs, which have inked deals with MSN, Disney, Paramount and Procter & Gamble.
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“Brand integration is one of the biggest segments of the online video ad market, maybe bigger than pre-rolls,” said Raj Amin, CEO of HealthiNation, the online video health information network.
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“We have found it to be difficult to disentangle what should be the online video ad spend when a Nissan sponsors ‘Heroes,’ for instance,” he said. “There is a lot of room for error.”
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