Hi-def TV and online video are finally getting significant attention from big advertisers. And those advertisers are willing to pay more per eyeball than they would for regular TV, say executives at Publicis media buying unit Starcom MediaVest Group.
SMG execs wouldn’t float actual dollar figures, so take their comments with a couple grains of salt. And keep in mind that since both HD and online have much smaller audiences, their CPMs look a bit inflated. But their are some positive reasons to boost rates, as well:
- On HD: SMG’s research shows viewers don’t resent the ads as much and tend to remember them better. Said Starcom VP Natalie Conway: “There has been a premium for HD relative to standard-def. Our research shows there is an advantage in likability and in purchase intent.”
- On Web Video: SMG research says online viewers tend to be more attentive to the ads than on TV. Said SMG VP and new media guru Tracy Scheppach: “Our research says online has significantly higher impact (than TV)–mostly associated with less clutter. All our venders are showing a very high recall rate; from 60% to about 90%.
SMG president Chris Boothe said the firm’s Upfront-style deal with HD TV networks is the first of what will be many deals with niche cable networks using set-top data from DirecTV and TNS, rather than traditional Nielsen ratings. The networks in the deal are too small to be reliably measured with Nielsen’s 14,000-home sample.
Boothe on the advertising slowdown: “We are in the process of assessing the Upfront marketplace, so its a little early to tell, but our early read is that demand is high. In terms of recession we might see it go down a little, but nothing so major that it would change what we do.”
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