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May 22, 2005

More than 1 million people saw a Buick commercial before watching the antics of "Desperate Housewives." So why should broadcast television executives be nervous?

Because the Buick ad was on the Internet.

After years of siphoning ad dollars from newspapers and magazines, the Internet is starting to chip away at the biggest and most powerful medium of all: television.

Commercials for Land Rover, the Army and Staples Inc. run before music videos and TV clips on Yahoo. General Motors Corp. cut commercial orders on some broadcast networks but agreed to pay $4 million to sponsor an America Online music service, expanding a campaign that placed Buick spots before AOL's recaps of the hit show "Desperate Housewives." Microsoft Corp.'s MSN.com recently landed blue-chip advertisers such as American Express Co., Volvo and Sprite.

"Our business is probably coming more from television, especially broadcast television, than from any other medium," said Wenda Harris Millard, chief sales officer for Yahoo Inc., which sold $3 billion in online ads last year. "Brand marketers have finally recognized they cannot ignore the shift in media consumption patterns."
Originally posted by filmstreet from del.icio.us/filmstreet, remediated by yatta on May 22, 2005 at 09:48 AM