• by Wayne Friedman , March 7, 2007

Advertising issues are on the mind of Bob Iger, president and CEO of The Walt Disney Co.--and it's not all positive.

Speaking at the Bear Stearns Media Conference, Iger admits Disney's new Web site activities, advertising messaging and revenue are a little behind the times. Conversely, abc.com--which streams a number of the net's prime-time shows--is far ahead of other media companies operating similar services, notes Iger. But he adds that the Internet gives advertisers unique opportunities they are not addressing.

"I'm a little disappointed," he says. "Most of the dialogue we have with advertisers is trying to get them more modern in the advertising messages they create. The advertising industry is behind where they need to be. There is a lot more that can happen."

As for the Disney Channel and the recent launch of Disney.com, Iger says there is plenty of content available, but not much revenue activity yet. "In the four weeks since Disney.com has been up, we have been streaming 100 million videos a week," he says. "It doesn't mean everyone has been watching every stream. Right now, there is little advertising available."

This effort is part of Disney's initiative to use the Internet to monetize businesses with advertising that haven't used it as a revenue source in the past--such as the Disney Channel, which doesn't carry any spots.

Similarly, Iger also talked about improving the profile of its consumer products business using the Internet. He said a recent book about Tinkerbell and her friends was put online, and kids created some 550,000 avatars--digital characters--all without any Disney marketing.

"And we intend on doing marketing," says Iger, in reference to building on this activity. Other possible extensions could exist as well--with linking Web efforts to sell clothing, toys and other products.

Less than one-third of Disney's revenues come from advertising--far lower than most media companies. Iger expects both traditional and new digital media to make contributions to the company. "The traditional network buy still has mass and is very, very efficient," he says. "I don't see it going away."