TV Everywhere Plan Will Change Ad Model

Time Warner's TV Everywhere initiative aimed at preserving the subscription revenue for TV programming airing online may end up also altering the current advertising model for online video for better or worse. Time Warner and Comcast are hoping to pursue C3 commercial rating accreditation for shows that are offered online. In order to gain that rating, video providers must air commercials in the same format they air on TV, according to Nielsen. A typical ad load on TV is on average around 15 minutes per hour. One Madison Avenue executive thinks it's highly unlikely that viewers of online content will agree to watch that many spots. "The billion dollar question is how do you capture revenue if you lose it in TV...There is no way you can have the same ad load," said Chris Allen, VP, video innovation director at media agency Starcom. "Maybe there'd be four to five commercials, but there is no way we'll get to 13.8 minutes plus promos and local." Allen suggested such a plan to simply move the ad load from TV to online in order to gain C3 ratings could "stifle creativity," since some advertisers seek to use online programming as a test bed for new ad formats with interactive capabilities.