Cable Cos. Unite to Build Ad Network
Comcast, Time Warner Cable, Cablevision, Cox Communications, Charter Communications and Bright House Networks have been working together on Project Canoe, a jointly owned company that would create a national ad network across all six cable systems. The united front is in an attempt to stem the flow of TV ad dollars from going online — and to block Google from making a successful jump to TV advertising.
Work started on Project Canoe six months ago; the companies will collectively shell out $150 million to build the service, which is worth it, considering the payoff. Consider that 90 percent of all video in the U.S. was watched on oldteevee last year, according to Starcom USA, compared to the 2 percent watched online.
Canoe will collect data from cable set-top boxes to sell more targeted advertising (which is delivered right back to those same set-top boxes). It will then be able to get a piece of the TV advertising revenues by allowing networks like ABC or TBS to sell ads on this highly targeted network. Execs at Canoe think they can triple their TV ad take, to $15 billion from $5 billion a year.
The initiative is also an attempt to block Google from further encroaching into TV territory. The search giant already has a deal with satellite TV service EchoStar to sell ads.
Ideally, this is better news for TV watchers as well. With better-targeted ads, viewers won’t have to sit through as many irrelevant commercials.
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[...] michaelb wrote an interesting post today onHere’s a quick excerpt Comcast, Time Warner Cable, Cablevision, Cox Communications, Charter Communications and Bright House Networks have been working together on Project Canoe, a jointly owned company that would create a national ad network across all six cable systems. The united front is in an attempt to stem the flow of TV ad dollars from going online — and to block Google from making a successful jump to TV advertising. Work started on Project Canoe six months ago; the companies will collectively shell out $150 million to build the service, which is worth it, considering the payoff. Consider that 90 percent of all video in the U.S. was watched on oldteevee last year, according to Starcom USA, compared to the 2 percent watched online. Canoe will collect data from cable set-top boxes to sell more targeted advertising (which is delivered right back to those same set-top boxes). It will then be able to get a […] [...]
Cable Cos. Unite to Build Ad Network on March 10th, 2008 at 1:09 pm - Permalink
[...] Well, on DISH Network TV, anyway. That’s the only service that’s given the go-ahead to Google (cable companies are perfecting their own Project Canoe). [...]
Google TV Ads: Hookers and Candidates Need Not Apply « NewTeeVee on May 1st, 2008 at 3:53 pm - Permalink
[...] targeted TV advertising on the local level brings in roughly $5 billion dollars each year. As NewTeeVee summarized from a New York Times story a few weeks ago, the Cable Television industry’s [...]
Google vs. Cable Industry over TV Advertising 2.0 « Glenn Rubenstein’s Weblog on May 2nd, 2008 at 10:38 pm - Permalink
I’m in the UK but what happened to people being able to make a choice according to the quality of the Product.
Guess what I won’t use any product that tries to Target Useless ads at me whilst I’m watching something else.
I’m a Technologist & I will use any & all means to block such unwarranted intrusions of Privacy whether it be Cable Company, ISP or Google etc!
Jonah on October 27th, 2008 at 4:04 am - Permalink