By Ken Liebeskind
WASHINGTON, D.C. --A study conducted for the American Advertising Federation reveals that a majority of advertising leaders believe that 10 to 29 percent of TV ad dollars will shift to broadband video by 2010.
The survey of 168 executives from all sectors of the advertising industry found that 33 percent believe 10-19 percent of TV ad dollars will shift to broadband video and 25 percent believe 20-29 percent will shift.
“When online advertising figures out how to target a market with upscale, high quality advertising, it will gain a larger share with younger audiences,” a respondent said. “When it creates info-ads that demand viewer involvement, its share of advertising dollars will increase.”
“The determining factor will be the sheer volume of online opportunities,” another respondent said. “Will there be a handful of sites that rise above the fray or so many sites to choose from that the media dollars can’t possibly cover enough bases to be effective?”
The study also found that online video will represent 14.9 percent of online spending for new media in 2007, second to search, which will be 27 percent. It leads all other forms of new media, including blogs, podcasts, social networking, mobile and video games.
More than 23 percent of the total media budget will be devoted to all forms of online advertising in 2007, up from 16 percent this year.
The study was prepared by the Atlantic Media Co.
Google Opens Its Defense In Antitrust Case Alleging Monopoly Over Online Ad Technology
Google opened its defense against allegations that it holds an illegal monopoly on online advertising technology Friday with witness testimony saying the industry is vastly more complex and competitive than portrayed by the federal government.
"The industry has been exceptionally fluid over the last 18 years," said Scott Sheffer, a vice president for global partnerships at Google, the company's first witness at its antitrust trial in federal court in Alexandria.
The Justice Department and a coalition of states contend that Google built and maintained an illegal monopoly over the technology that facilitates the buying and selling of online ads seen by consumers.
Google counters that the government's case improperly focuses on a narrow type of online ads — essentially the rectangular ones that appear on the top and on the right-hand side of a webpage. In its opening statement, Google's lawyers said the Supreme Court has warned judges against taking action when dealing with rapidly emerging technology like what Sheffer described because of the risk of error or unintended consequences.
Google says defining the market so narrowly ignores the competition it faces from social media companies, Amazon, streaming TV providers and others who offer advertisers the means to reach online consumers.
Justice Department lawyers called witnesses to testify for two weeks before resting their case Friday afternoon, detailing the ways that automated ad exchanges conduct auctions in a matter of milliseconds to determine which ads are placed in front of which consumers and how much they cost.
The department contends the auctions are finessed in subtle ways that benefit Google to the exclusion of would-be competitors and in ways that prevent... Read More