Time Warner: Cable interactive ads can compete with Web ads
LAS VEGAS (Reuters) - The cable industry can compete successfully with online companies for advertising dollars by launching on-demand networks supported by advanced interactive advertising, President of Time Warner Inc. Jeffrey Bewkes said on Wednesday.
Bewkes, speaking at the 56th annual National Cable & Telecommunications Association's The Cable Show, said the cable industry was in an advantageous position over other platforms as it has the technology alongside detailed customer information to deliver programming and advertising that consumers want.
The cable industry has detailed customer data comparable if not better than leading online advertising platforms such as Google, Bewkes said. "You don't have to go to the Nielsen sample you have all the data. So why would that not be the next great future of advertising?"
Bewkes, who last year called for cable networks to offer all programming on-demand, said the cable industry should work over the next year at offering ad-supported cable networks on-demand as well as building an advanced cable advertising platform that can rival Internet-based advertising.
Online advertising, both with search engines and graphic advertising, is driven by information provided by customers such as their search terms or other personal information that is shared.
The potential of cable interactive advertising was one of the highlights of the show which for the first time collaborated with the Cable Advertising Bureau.
Bewkes' comments came a day after Cox Communications, the No. 4 U.S. cable operator and Walt Disney Co. said they are working together on a video-on-demand platform for ad-supported programming such as Desperate Housewives but viewers would not be able to fast-forward through the advertising.
George Bodenheimer, co-chairman of Disney Media Networks, said that other cable operators had made enquiries about working together on a similar service since the announcement.
But Bodenheimer said it was still too early to confirm the business model for the new type of interactive advertising.
"We're not sure precisely how that's going to work out but we do need to generate revenue to get to produce new product," he said. "This is just one attempt of many to look for business models."
