Where Will Advertising Dollars Go Once TV is Ad-Free?
Posted by Max Dunn Thu, 15 Dec 2005 19:13:00 GMT
Here is an article that discusses how the advent of ad-free TV on video iPod is terrifying advertisers:
This provides support for my theory that the video iPod, PVRs and TV-on-demand will cause major and fundamental shifts in the way companies do advertising.
For years, advertisers have kept their heads in the sand when confronted with the reality that many viewers are simply not watching TV commercials. However, these new technologies will force them to confront reality when people start paying for their TV to be ad-free.
And where will companies put their billions of advertising dollars once TV is no longer a viable way of delivering their message? Why, the Internet of course!
It is already starting to happen. If you read your news on [CNN](http://www.cnn.com/) or [USAToday](http://www.usatoday.com/) you will see ads in many strategic places. And unlike TV, they can track exactly what you see and click on, or even force you to view the ad before showing an article or video clip. This provides a way to customize and target the advertising message that was never possible on TV.
Ads work. That is why billions of dollars are spent on advertising every year. And when TV is no longer a viable way to promote those ads, those dollars will shift, mainly to the Internet, causing a huge upheaval and tremendous opportunites for those Internet companies that can capture these ad revenue.