• by David Goetzl  @dgoetzl, January 15, 2007

Buyers, sellers, viewers, know that DVRs threaten ad-supported television as much as Al Gore says global warming threatens Earth. But there's another less-ballyhooed hazard to the traditional ad model: Internet streaming of shows.

The full episodes available on most networks' Web sites contain about 87% less commercial time than when the same episode airs in its broadcast window. Often, there's as little as one 15-second pre-roll spot, and then it's on to an ad-free airing. And the burgeoning number of presumably pirated episodes streamed on YouTube are usually ad-free.

So, as more viewers--particularly the younger ones advertisers are seeking--decide to watch these Internet streams during their lunch breaks or otherwise on-demand, it's likely they will warm to the idea of a near commercial-free episode that also saves them time, running maybe 16 minutes shorter than the TV broadcast.

To be sure, as viewers flock to these streams, advertisers may increase the ad load there or even charge advertisers a princely sum for the low-clutter environment. But, at least in the long, near-term, those revenue levels won't replace the damage from lost TV viewers.

What's the answer? Networks and marketers are likely to increasingly work together to craft packages in which advertisers put up enough dough to sponsor commercial-free episodes--and the two still find a creative way for marketers to satisfactorily convey their message.

TNT made an attempt three times last summer, when automakers Hyundai, Dodge and Audi each sponsored a commercial-free premiere of a drama. And competitor FX has aggressively courted advertisers for similar arrangements--and the net was back at it with the Jan. 2 premiere of its compelling new drama "Dirt," starring Courteney Cox, whose striking performance as a ruthless tabloid editor/Hollywood powerbroker gives her a strong chance of breaking out of her "Friend" persona.

Pontiac sponsored the commercial-free premiere, or "powered" it as the voiceover said, in a bid to plug one of its attractive new convertibles. (The Pontiac brand integration is one of the top product placements of the week, according to measurement firm iTVX.)

The multi-faceted sponsorship didn't include any :30s, but still provided considerable exposure for Pontiac, a glimpse at how marketers can execute brand insertion while appeasing viewer appetite for fewer, if any, commercials.

Besides a "presented commercial-free by Pontiac"-type message at the top aimed at building goodwill, there was a clever product mention, as well as a less-creative product placement within the episode. Then, there was a coup de grace after the show: Cox delivering what actually appeared to be a heartfelt thank you to Pontiac for delivering it without commercial interruption.

Standing in front of one of the sleek new Solstice convertibles, she looked dignified and sounded sincere: "I'm Courteney Cox, thank you for joining us tonight for the premiere of "Dirt." The entire cast and crew would like to thank everyone at Pontiac for presenting tonight's premiere episode commercial-free."

A checkered flag for Pontiac. American stars are loathe to do commercials in the U.S. for fear of appearing like mercenaries (think "Lost in Translation"). Perhaps, because her career has a lot riding on the show's success, she came through for the carmaker. It was a heck of a lot more convincing than a disembodied voiceover saying "FX would like to thank Pontiac ..."

The Cox coup and Pontiac maneuver even garnered praise at no less a pop-culture mecca than MIT. A blogger from its Comparative Media Studies department wrote: "Really, it feels more like corporate-donor messages on PBS than an advertising gimmick, which may help grant some goodwill for Pontiac."

There actually are a couple of brand reminders throughout--albeit very subtle. Early in the premiere, a hoops star for the "Los Angeles Rock," character "Prince Tyreese" (played by ex-LA Laker turned thespian Rick Fox), is named the "Pontiac MVP" of a game. That's a solid example of "natural" brand integration, since Pontiac sponsors similar awards in the sports world, including a "Pontiac Game Changing Performance" of the week in college football.

A less organic product placement comes in a sexually charged scene when Cox (as character Lucy Spiller) flirts with a male suitor while her car is delivered by a valet. Shockingly, it's a Pontiac Solstice. She then challenges the suitor, whose car appears better suited for the scrap heap, to a race to her home, surely a nod to the Solstice's horsepower, handling and other attributes.

The scene does raise one question on the realism front: Why is a wealthy, Hollywood power-broker, star-maker like Spiller driving a Pontiac in the land of BMWs, Jags and rides even higher on the prestige scale? In fact, later in the episode, both a Range Rover and classic Mustang, more Tinseltown-like, are shown driven by celebs. (Both of those brands interestingly are owned by Pontiac competitor Ford.)

But for Pontiac, trying to raise its upscale profile, the strategy is clear: If an attractive Hollywood potentate is driving one of its convertibles, even a fictional one, all the better for its image.

Mark-Hans Richer, marketing director for Pontiac, speaking to TV Week about the "Dirt" initiative, said that one way to break through the clutter "is to eliminate the clutter and leave yourself as the only one standing."

"There's nothing wrong with commercials," he said. "Clearly, we still air commercials, but the definition of commercial and even what advertising is has expanded greatly."

TV Week reported that the Solstice is set to make appearances in a bundle of ensuing episodes in "Dirt's" freshman season, and even serve as a springboard for a story arc. Storyline integration is one of the gambits Richer is referring to when he talks about an emerging new definition of advertising.

One of the factors propelling that reevaluation is the Web, where a commercial-free, or nearly so, model for streaming video could have a powerful ripple effect.