TV in Trouble: Online Ad Rates Exceed Broadcast

You had to know it would be The Simpsons that did in TV. According to a story on Bloomberg, advertising rates on top shows like The Simpsons on Hulu now outpace the ad rates that the same shows gets on that flat-panel thing in the living room that you rarely turn on.

Marketers typically pay $20 to $40 per thousand viewers for a prime-time ad. On Hulu, which began offering shows to the public in March 2008, an ad on the animated series “The Simpsons” costs $60 per thousand viewers, Michael Nathanson, an analyst at Sanford C. Bernstein & Co. wrote in a June 18 report.

Fascinating story. Read the whole thing.

Comments

[bluesmoke:]

The saying "eyes wide shut" comes to mind. I'm not sure I'd want to be invested in the terrestrial broadcast business on any level these days.

Jun 26 04:03 PM

[jay fredric...:]

Paul: Good source. reading the whole story shows that only premium episodes or premium shows are commanding extra dollars. As inventory online grows, the rates will crash due to the scarcity of viewing time once spread over many more options. Sorta like cable on steroids.

Jun 27 09:21 AM

[nobby73:]

Watching American television has become an absurd experience, with commercial "breaks" making up as much air time as the actual shows. The technique of increasing the volume for the ads, in case we don't pay attention is maddening as well. I am sure that research has shown how ineffective tv has become as an advertising medium, hence the rates have fallen.

When the industrial conglomerates that own the channels realize that people the main purpose of tv is to entertain and inform, rather than sell stuff, and reduce the number and length of breaks, the effectiveness of the commercials may increase, or in the digital age they can offer the chance to watch programs uninterrupted by paying say $1 per hour.

Frankly, I find tv advertising and annoyance and more often boycott products because of ads that I hate.

Jun 27 11:29 AM

[bridanp2:]

Those Hulu ads are so much better than regular television ads (as in not too many of them and quicker). We closed our satellite subscription back around Christmas and now watch what we want on Hulu or Netflix via Xbox 360.

Jun 28 12:47 AM

[naysh:]

I saw this one coming a long long time ago. TV still has wider reach though and will never go the way of print media.

Jun 30 03:09 PM