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That’s the estimate from eMarketer: it says that the online video advertising on NBCOlympics.com will reach a relatively small $5.75 million…

That’s the estimate from eMarketer: it says that the online video advertising on NBCOlympics.com will reach a relatively small $5.75 million, only 1.1 percent of this year

  1. Which shows one more time that online advertising does not work well with this type of content – which generates huge but short-lived spikes of high traffic, especially if the content has to be streamed. In this respect, the Olympics are very much like the Oscars or the Super Bowl. The best way to monetize this type of content is through the pay-per-download model. Ten or twenty cents to view a hot, good quality video is not much, but if multiplied by millions of streams, it can be a serious alternative to ads.

    The problem is that those who decide on the content monetization strategies are the same people who sell ad space/time to the same handful of companies year after year. Pay-per-view would eliminate their jobs and the huge bonuses they get for… well, selling the same space to the same company for the usual $400K or something. Why would they recommend a different model?

    (Naturally, there is also Mr Shirky who claims that “free” (that is, ad-sponsored) is always better, but this is another issue…)

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