LOS ANGELES (Reuters) - Walt Disney Co. (DIS.N: Quote, Profile, Research) will try a new type of advertising when it begins showing prime-time ABC television shows on the Web, using a single, interactive ad during each break rather than the flurry of short spots that are the norm on network TV.
Ten major advertisers have delivered new interactive online commercials as part of Disney's two-month test of whether consumers will watch ads if they can download hit TV shows on abc.com for free.
The test, which starts May 1, offers streaming video of "Desperate Housewives," "Alias," "Commander in Chief" and "Lost" about 12 hours after each episode airs on the East Coast.
The company charged advertisers only for the cost of setting up the online player and may actually lose money if the site becomes wildly popular, Alan Ives, vice president of interactive sales for ABC, said on Tuesday.
Disney asked major ad agencies to recommend advertisers who "are willing to push the envelope" for the test, Ives said.
The company had no problem finding advertisers once news of the trial hit the press, he said. The companies, including AT&T Inc (T.N: Quote, Profile, Research), Cingular, Toyota Motor Corp.(7203.T: Quote, Profile, Research), Ford Motor Co. (F.N: Quote, Profile, Research), Procter & Gamble Co. (PG.N: Quote, Profile, Research), Unilever Plc (ULVR.L: Quote, Profile, Research), General Electric Co's (GE.N: Quote, Profile, Research) Universal Pictures and Walt Disney Pictures, turned in their ads about two weeks ago.
"It's a new and different ad model," Ives said. "We got some pretty creative stuff. If you had unlimited time and interactivity to get your message across, what would you do?"
Each online episode will kick off with a 10-second sponsorship message from a single advertiser and will feature one commercial from that sponsor per commercial break, Ives said.
Commercials from each advertiser will cycle through an episode every time it is viewed online, meaning that different commercials could appear each time the show was watched online.
Only three of the five commercial breaks built into episodes for broadcast television will be used in the online model, Ives said.
Viewers will have to watch or click through ads to get to the next segment of the program. The commercials were designed to last at least 30 seconds, but some feature interactive games, coupon offers or product information that may engage viewers longer.
There is the option of clicking out of the advertisements and returning to the program after 30 seconds, he said.
By the time ABC presents its new fall schedule on May 16 in New York, Disney will have two weeks' worth of data showing how consumers are responding to the online ads.
Disney plans to review partial results of the trial at that presentation, a company official said.
Disney-ABC Television Group President Anne Sweeney said this week that the network plans to launch an enhanced version of its the program later this year.
Sweeney said the company would work with network affiliates, who were angered by the company's decision to offer premium content online, to build an online business model.
Disney officials said they do not expect abc.com to replace TV advertising or even to provide a meaningful revenue stream in the near future.
Sweeney said the online program will offer the network information about online technology and how consumers use it.
ABC already sells digital downloads of its highest-rated shows for the popular iPod music and video player.
4.26.2006
Disney to test new interactive ads on abc.com
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