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Technology Stocks : Aahh...iNEXTV (AXC) The NEXT Thing! -- Ignore unavailable to you. Want to Upgrade?

To: killybegs who wrote (3302)	3/26/2001 9:34:23 PM
From: killybegs	Read Replies (1) \| Respond to of 4169

Mr Drew... Article 35 of 97 Advertising Get ready for flood of streaming ads ANDREW ROBINS 01/15/2001 Electronic Media Page 16 Copyright (C) 2001 Crain Communications, Inc. All rights reserved. Like Copernicus and other early astronomers who first theorized that the Earth is round, Internet industry media planners believe they have found the answer to a great riddle-how to make money on the Internet. And as their predecessors in the astrophysical sciences learned, the answer appears in three dimensions. Such is the idea being promulgated by Web content providers who are trying to sell ads for placement in streaming media broadcasts. The failure of traditional flat banner ads to produce the revenues necessary to sustain Internet content operations is fueling a new wave of streaming media ad campaigns, some of which are being designed to supplement or replace floundering banner ad programs. Although banner ads have only commanded costs per thousand in the $10 to $12 range, video ads played at the beginning of a streaming media broadcast are expected to draw CPMs of at least $25 to $45. "With in-stream ads, you've got active ads instead of passive ads," said Drew Cummings , president and CEO of the Alternative Entertainment Network, a Woodland Hills, Calif., streaming media production company that launched its first rich media ad campaign last week. "People have to click on the videos to watch the shows." As a result, some Internet content purveyors believe that like television ads, streaming media ads may be more difficult for viewers to ignore than banner ads and will hence generate greater profits. Still, like any revolutionary idea, streaming media advertising is catching on slowly. And the current lull in the advertising industry means that there will be a period of industry skepticism before streaming media ads are widely accepted. "We're in an evangelical process, talking to the ad agencies," said T.S. Kelly, director of Internet Media strategies at Nielsen//NetRatings. Because banner ads have been the prevalent Internet advertising vehicle for several years, it will take time for the industry to ascertain how to measure the effectiveness of streaming media ads. For instance, Mr. Kelly pointed out, one hurdle the rich-media ad industry must overcome is how to reach Internet users who have not installed the plug-ins, such as Flash, that are required for viewing the streaming broadcasts. A measurement standard that accounts for video click-on rates might overestimate the reach of a given ad because many viewers could click on an ad even though they lack the plug-ins necessary to view it, Mr. Kelly warned. "Over the next year and a half, you'll see standards established in streaming measurement," he predicted. However, Mr. Kelly projected that major Internet sites that can reach a wide audience will be the most successful at selling rich media ads. One such Internet channel that has been one of the early entrants into the new advertising medium is MSNBC.com, which began featuring rich media ads on its portal late last year. Battery manufacturer Energizer and online trading service Scottrade have both purchased 15-second ad slots that are running just before MSNBC.com broadcasts. But upstart indie Web content producer On2.com believes targeting its streaming ads to a particular demographic will yield even more lucrative returns than the $25 to $45 CPM average for most campaigns. The company announced one of the most ambitious rich-media ad ventures last week when it said it is partnering with database company Traffix to direct streaming ads to consumers who have indicated in e-mailed direct responses that they are planning vacations. "This isn't just broad-based demographics," said On2.com CEO Doug McIntyre. "This is someone who's saying they're planning to perform a purchase. I'm anticipating this will be a $400 to $500 CPM product." Under the On2.com/Traffix "opt-in" advertising arrangement, consumers who have agreed via e-mail to receive more information about a product will receive another e-mail that will launch a streaming ad.