Friday, June 27, 2008

Three Screen Ads: Heat More than Light

At least some tier one service providers have high hopes for advertising spend based on targeting techniques and availability on three screens (TV, PC, mobile).

You see huge numbers around online ad spending, mobile ad spending or targeted ad spending. Nobody knows what will happen, except that share will continue to shift from existing media to online and mobile.

It doesn't seem so clear to me that new ad revenues will be transforming for either cable or telco providers, though.

Cable has been at the ad game for quite some time, and the overwhelming amount of money made by ca cable operators comes from recurring services.

In fact, cable modem and voice services already surpass total ad revenues. As a new revenue stream, it's important, to be sure.

The issue is how significant targeted advertising can be, when location and other attributes are easy to assimilate as part of the placement decision. If history provides any guidance, the answer will be "far less than you think."

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