• The Associated Press, Monday, April 14, 2008 11:15 AM

Broadcasters are still playing the waiting game with online video. The major networks--NBC, ABC, CBS and Fox--have extended their professionally produced shows to the Web, but audiences are still small. According to comScore Media Metrix, ABC.com led the pack in February with 8.5 million unique views of its online video lineup, followed by NBC.com with 7.9 million. By comparison, a popular TV show like CBS's "CSI" regularly reaches twice as many people in a single episode.

In the meantime, the challenge for broadcasters is to make online video advertising as effective as it can be without cannibalizing on the real moneymakers, traditional TV ratings and DVD sales. But at the same time, they're focused on extracting more money from each online user. Online video ads are interactive, offer better measurement and can lead directly to sales or conversions; because of this, the networks have started charging more per thousand online views (between $35 and $50 according to The Associated Press) than over the airwaves, where the average CPM is $25.

That said, video advertising is still a long way away from being as lucrative TV. As Albert Cheng, executive vice president of digital media for the Disney-ABC Television Group said, the goal is to reach parity: "In order for us to drive the number up to what we get on broadcast, we have to do one of two things. We have to either increase the number of ads that you currently see on ABC.com or figure out different ways to generate value for advertisers."

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