ABC will do a two-month trial of the concept starting in May. The episodes will be made available on ABC.com the day after they run on TV. Viewers will be able to pause and move between "chapters" in an episode, but not skip ads, which are technically embedded.
ABC's plan is a way for the network to grab additional ad revenue by creating more inventory--online. It also plays nicely into on-demand content trends. We fully expect to see more networks make prime-time content available online, following ABC's lead. In fact, these announcements could come in a matter of weeks as networks beat the drum to the upfronts.
In ABC's case, advertisers for the trial programming run include AT&T, Ford Motor Co., Procter & Gamble Co., and Universal Pictures. The method for ad inclusion includes inserting video ads into the content and sponsorships tailored specifically to the Web experience.
ABC's move represents one more example of networks trying to chase audiences wherever they are: "None of us can live in a world of just one business model," said Anne Sweeney, co-chair, Disney Media Networks and president, Disney-ABC Television Group, speaking at The National Cable Television Association show in Atlanta. "This allows us to learn a different model. And it allows us to take our broadcast advertisers into the space and allows them to experiment."
Meanwhile, Internet advertising keeps growing: Spending on Internet ads will overtake billboards and other outdoor advertising next year, according to Zenith Optimedia, which revised its forecast. The Web will account for 6.5 percent of all advertising by 2008, up from an earlier forecast of 6 percent in December, Zenith reports. Online ad spending accounted for 4.5 percent of the global market last year.
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