Web Pulls Commercials Off the Air
Sunday, May 22, 2005, The Miami Herald
(Picked up from the Los Angeles Times News service)
- After years of taking ad dollars from newspapers and magazines, the
Internet is starting to chip away at the most powerful medium of all:
television.
- More than 1 million people saw a Buick commercial on the Internet.
- Commercials for Land Rover, the Army and Staples run before playing
the playing of music videos on Yahoo. (Yahoo sold $3 billion in online
ads last year.)
- General Motors cut commercial orders on some broadcast networks but
agreed to pay $4 million to sponsor an America Online music service.
- Microsoft's MSN.com recently landed blue-chip advertisers such as
American Express, Volvo and Sprite.
- The Internet is now threatening to shrink the current $60
billion-a-year market for broadcast network, cable and local TV ads.
- Online ad revenues surged 33 percent to nearly $10 billion in the US
last year and are expected to grow as much again this year.
- A recent study by Forrester research found that people spend 34
percent of their media-consumption time, including both home and work,
on the Internet. That's now slightly more than the amount of time they
spend watching TV. Still, only 6 percent of advertising dollars
presently go to the Internet; which provides a huge early adapter
opportunity.
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Web Pulls Commercials Off
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