Bud.TV: Logging Troubles
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Case Details:
Case Code : MKTG170
Case Length : 16 Pages
Period : 2005-07
Pub Date : 2007
Teaching Note :Not Available Organization : Anheuser-Busch Companies Inc., Bud.TV
Industry : Dotcom, Internet Portal
Countries : US
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"The reason that YouTube and MySpace work is that they
have an open environment where you can share, That's what draws masses of
eyeballs. The Bud.TV content may be fantastic, but if they can't attract
audience it doesn't do much for them."1
- Michael Hayes, Senior VP-Managing Director at Initiative
Interactive, in 2007.
"Bud.TV is ambitious in its effort to create a whole mini
cable network online because that requires a more significant commitment to
content production and relationships like the deal with Sony to stream
Afterworld. That means more overhead has to be assigned, which means more costs
to recuperate. With that high risk, one wonders if it wouldn't be just as
valuable to have put the resources into producing or sponsoring clips intended
for distribution primarily on other video sites that already have an audience."2
- James McQuivey, Analyst, Forrester Research3,
in 2007.
Introduction
In the first week of March 2007, comScore Media Metrix4
announced that Bud.TV, the digital entertainment network launched by
Anheuser-Busch Companies Inc.5
(Anheuser-Busch), had averaged 253,000 unique visitors in February 2007, its
first month online. Bud.TV was launched after an advertising campaign during
Super Bowl XLI6. According to
Anheuser-Busch's projections, Bud.TV would attract about 3 million unique
visitors per month by the end of 2007.
Launched on February 04, 2007, Bud.TV featured seven channels offering a wide
range of programs. The launch was supported by both electronic billboards that
were displayed during the Super Bowl, and advertisements on major websites.
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The US$ 30 million initiative was said to pioneer the direct-to-consumer
approach to advertising by bringing promotional content directly to the
targeted consumers.
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Through direct-to-consumer initiatives, marketers
would have more control over the message they were delivering to their
consumers, as compared to relying on traditional TV. Bud.TV was closely
watched to determine if major television marketers like Anheuser-Busch,
who spent millions of dollars every year on advertising, would shift a
part of their marketing budgets to the Internet, to reach the target
audience more effectively. According to Hilmi Ozguc, CEO of Maven
Networks7, "This changes the whole
concept of broadcasting out to consumers. Typically, media companies
have done that. With the Internet, we blow out that old model and enable
advertisers to reach consumers directly without having the media
companies sell the ad space."8 |
Bud.TV: Logging Troubles
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