'Google for TV?' REVShare Network Delivers on the Promise of a Google-like Advertising Model for Traditional Television

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While companies like Google are just now developing alternative advertising sales models for radio, print and soon television, REVShare is delivering the future today.

While companies like Google are just now developing alternative advertising sales models for radio, print and soon television, REVShare is delivering the future today. In 1989, REVShare began developing a television Cost-per-Action advertising model which today bears a great deal of similarity to AdWords, Google's advertising model. While the more mature television marketplace was slower in responding to REVShare's model, over the years the company established the foundation for what has become television's largest Cost-per-Action advertising network. And today, REVShare announced that its Cost-per-Action (CPA) network has surpassed 1,000 television properties.

“As models like Google expand into traditional media -- such as terrestrial radio via its purchase of dMarc Media Network as well as its newspaper and magazine advertising push -- REVShare has already integrated CPA with new network advertising models similar to the type that Google is still attempting to develop,” said Joseph Gray, CEO and Founder of the 17-year-old REVShare. “With more advertising dollars shifting to the Internet, we see our CPA model as a way to start bringing some of those dollars back to Television.”

“It’s about removing the traditional barriers of entry that exist,” Gray continued. “When you have so many Internet advertisers who are comfortable with CPA metrics, why not offer them a CPA solution for Television? This can only result in more ad dollars coming back to Television, which is great for our industry”

REVShare reports that its CPA Television Network delivered over $500,000,000 worth of television time to its advertising customers in 2005, and grew its own revenues by more than 50 percent during the same period.

When asked to define the amount of television time REVShare delivers to advertisers, Gray responded, "If one considers what traditional advertisers are paying for local media in today's marketplace, we estimate the retail value of our 2005 network delivery to be over $500 million. However, we wish to be clear that this media is not sold on the basis of local valuation. REVShare bundles inventory on over 1000 television properties and delivers it at rates that greatly surpass network levels of efficiency. This 30 and 60 second spot inventory is further discounted to make it affordable for direct response television advertisers who purchase it on a Cost-per-Action basis at a fraction of its traditional market value. Stations use this model as a wholesale outlet for media that is not sold upfront -- they appreciate that they can sell this media off the radar and at a rate of return that is only known to them.”

“Contrary to what people may initially believe, our network delivery skews to the top 100 markets and delivers during the most sought after dayparts,” Gray continued. “Like Google's model, the cost of this CPA inventory will continue to increase as more advertisers adopt the model and competition increases.

“We're only just beginning to see what the market is willing to pay for this media,’ he added. “As competition increases from advertisers over time, this will result in higher yields for stations. We expect the stations will respond by investing even more inventory into this model and that the economics of supply and demand will ultimately work themselves out, representing a huge growth opportunity for both advertisers and stations.

REVShare’s Cost-per-Action model is timely, considering that television is becoming more like the Internet every day in terms of the fragmentation of viewers and programming. Further complicating matters have been a number of new technologies such as Digital Video Recorders like Tivo, along with new forms of television distribution such as video over fiber, video for portable devices and Internet Video.

“While new forms of video distribution are coming faster than traditional metrics can keep up with, REVShare’s CPA model can scale and monetize as well as provide metrics advertisers need today -- similar metrics to those online advertisers have enjoyed for years,” Gray said. “The television advertising industry outside of CPA simply does not have the tools to make it work.”

About REVShare:

REVShare has specialized in performance-based advertising since 1989. The company has relationships with more than 1,000 local market television stations, cable systems, syndicators and networks, which are willing to provide television time on a results basis. With a customer-oriented team, proven client results, state-of-the art

technology and marketing know-how, REVShare continues to lead the industry in the evolution of television advertising models for the next generation of convergence and interactivity. Early adopters of REVShare’s model will have exclusive access to a technology-driven metrics approach that will work with evolving new media opportunities such as video over fiber, interactive television, ad-supported video-on-demand and Internet video.

For more information on REVShare, please contact Alain Jourdier, Vice President, Marketing and Communications: 1-800-819-9945, ext. 485.

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Gary Goldhammer
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