Tuesday, July 28, 2009

How to Reinvigorate the TV Advertising Market -- Two Approaches (Google & IAC)

Traditional TV's ad-driven business model, of course, has been under threat for years as a result of DVRs and fast-forwarding through commercials. Internet poaching of viewers' eyeballs certainly hasn't helped, especially since no one yet has figured out a way to effectively monetize Internet TV viewing (although they will).

So, what's traditional TV, ad3 agencies and their clients to do when faced with this reality?

Google and IAC each have now announced two different approaches -- Google's, not surprisingly, more "high tech." Google has joined forces with Visible World Inc. (an advertising-related tech company) to more effectively serve up more targeted ads to TV viewers, whereas IAC has taken a much more "traditional" tact. Specifically, Barry Diller has joined forces with newly-ousted NBC TV exec Ben Silverman to create a new "integrated advertising" company -- integrated marketing includes tactics like including products and services directly into the TV programming itself so that the viewer does not think that such placement is a commercial. A great example of the latter is the prominent use of red Coke cups by all four judges throughout each show of "American Idol."

Two divergent approaches -- both, which could be effective in this brave new world.

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