Advertisers Pay Big Money for Audiences on the Net

10/06/2005 - 11:43 AM >> , ,

They must read BBB because the New York Times has a piece on how internet distribution cuts down on costs for smaller video producers:

While there have been a few successful subscription services for Internet video, most notably those offered by Major League Baseball, the driving force of the online video market is advertising.

“The advertising model is extremely simple and very attractive: you simply put your 30-second commercial in front of the video,” said Josh Bernoff, an analyst with Forrester.

Advertisers are paying $25 per thousand users who see their online commercials, more than they pay for network television, Mr. Bernoff said.

The world of wildly inaccurate Nielsens is over. Advertisers are willing to pay a premium for smaller online audiences because they know exactly what they are getting.