Comcast/NBCU: Broadcast Wanes, Interactive Ad Push Soars

Advertising is not a big part of the proposed Comcast NBCU merger -- yet. It represents only about 20% of the new NBCU's total revenues, a figure the new owners intend to change. The road to revenue growth is paved with interactive ad riches -- a long, twisted path through cable, online and mobile. The big question is, how long will it take for those options to ramp up? The new NBCU will control about one-fifth of TV viewing in the U.S., a one-third stake in the leading online video service Hulu and full ownership of Comcast's online video service Fancast. It will provide Comcast and other cable operators with tremendous scale to roll out Project Canoe, an addressable ad program providing advanced local advertising solutions. Trials targeting consumers by geographic location -- as well as needs and interests -- using the cable set-top box have been successful so far, supported by major marketers including Procter & Gamble and Kraft Foods. The hope is that marketers will pay a premium for such targeted interactive connections, which they can continue to mine over time.