BBC Online seeks out ad revenue

BBC Online will aggressively chase advertising revenue to support the launch of its consumer Internet service next spring, according to Rupert Miles, director of BBC Online.

Plans for the new service – a joint venture between BBC Worldwide and ICL – remain sketchy. But it is likely to be competitively priced compared with other Internet access providers.

BBC Online will initially seek to offset costs of developing BBC-derived services through ad revenue, so avoiding the need to charge a premium on subscriptions.

Miles, formerly publishing director at Radio Times and ad director at IPC weeklies, says: “It will be advertising driven, because that’s the only credible model in the market at the moment.

“There is some evidence of subscription-based Web content services starting to raise their heads. But the real money at the moment is found in advertising and, perhaps, shopping.”

Miles’ comments coincide with the appointment of Simon Johnson as head of marketing at BBC Online. Johnson, currently head of telecoms and media publishing for the FT Telecoms & Media Publishing, remains with the FT group until the end of the year.

“Johnson is a key appointment,” says Miles. “The most successfully managed service globally is currently AOL, and I suspect the reason behind that is that it has appointed a marketing man to the top job. As head of marketing, Johnson will sit on the board.”

Johnson says that concerns over protecting the BBC’s worldwide reputation for delivering trusted news globally may require BBC Online to vet the suitability of advert ising carried by certain areas of the service.