Google, Yahoo! Battle Networks for Ads

The rapid rise of online advertising has already brought the publishing business to its knees. Now, with streaming video spreading like wildfire, broadcast and cable TV networks are fighting to show investors they won't suffer the same digital doldrums as their print counterparts.

Mid-May will bring a major test for the industry as its so-called upfront season begins. Every year, the networks throw a series of lavish parties in New York City known as upfronts, parading the hottest stars from their upcoming lineup of prime-time shows for ad buyers from Madison Avenue, who then pony up billions for commercial time on behalf of their clients.

Wall Street expects this year's haul to match or slightly exceed last year's $9 billion to the broadcast networks and $6.5 billion to cable, but the forecasts are muddled by a confluence of digital technologies that are breaking down the industry's traditional business model.

"The whole procedure could be turned upside down this year," says Jordan Breslow, director of research for MediaCom, a media buying firm owned by WPP Group. "Ad buyers are demanding a Web presence now, along with TV spots, and they have more access to information about how many people are actually viewing their ads and who those people are. So, it allows buyers to be more targeted and cost-effective."

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