Netflix has already proven that it’s possible to build a big business in television without advertisers. Subscription fees, it turns out, do the trick. That means that the proliferation of internet TV may be the final nail in the traditional commercial’s coffin. That would change the entire economics of the advertising industry over the next decade, Hunt explained. “The ad-free model seems to be very popular with consumers,” he said. “We have to imagine that the Geicos and the Wendys and the Chevys will have to find a different place to advertise their wares in 2025.” But there’s another possibility. According to Hunt, the same technology that delivers personalized content to viewers could also help internet TV service providers select more targeted ads to show their users. “Maybe you only see that Chevy ad if you’re ready to buy the car today,” Hunt said. That means viewers would see fewer ads, and advertisers would get to reach a more relevant audience. wired/2014/05/neil-hunt/
Posted on: Tue, 20 May 2014 13:21:32 +0000
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