- Wednesday, May. 21, 2008
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National broadcast and cable TV networks generated two percent of their advertising revenues ($1.4 billion) through online programming in 2007 and will generate eight percent ($6.4 billion) in 2011, according to Convergence Network's New Challenges and Opportunities in the Content Market report, released in April.
"Our forecasts demonstrate that through 2011 network online advertising revenue will equal half the gains of their traditional TV advertising revenues ($5 billion and $10 billion respectively), reflecting strong network online advertising and viewing growth rate gains," the report said.
Higher online viewing will spur the growth. In 2007, nine percent of TV viewers watched full-episode programs online. The number will grow to 14 percent in 2008, 19 percent in 2009 and 23 percent in 2010, the report said.
The report also said that there are five times as many views of short clips than full-episodes, which will decline to three times as many by 2011, but it didn't say what impact that has on advertising.
The report called online "another complementary distribution window" for the networks, but indicated it hasn't seen larger ad revenue gains because it offers "80 percent less available advertising minutes per hour, lower CPM rates and no lucrative upfront market."