Advertising-supported content has become the dominant business model for the internet, as demonstrated by our (AOL, Time Warner, NYSE:TWX) recent change from a membership-based model. Advertising Age recently released its study of the 100 top advertisers and how they spend their advertising dollars. For all the brouhaha about the internet, traditional print advertising still dominates the marketing plans of the top corporations. A breakdown of 2006 expenditures by ad distribution platform shows --

1. Magazines -- $29.83 billion
2. Newspapers -- $29.80 billion
3. Network TV -- $27.16 billion
4. Spot TV -- $17.23 billion
5. Cable TV networks -- $16.75 billion
6. Radio -- $11.06 billion
7. Internet -- $9.75 billion
8. Syndicated TV -- $4.2 billion
9. Outdoor -- $3.83 billion

I knew Nielsen didn't formally track the viewership of TV commercials as part of its television ratings, but somehow, I didn't know it. It seems like an obvious win -- after all, ever since the days when VCRs reared their 12:00-blinking heads in the world's living rooms (and don't even get them started on TiVo), broadcasters have been wondering whether people were watching commercials.

Well here you are, Nielsen: I watch TV ads, and so do my children, so they can nag me. But you'll know that soon, as you're about to start formally breaking out commercial breaks in the TV numbers you report. Everyone's expecting, of course, to see that viewership declines sharply during advertisements. And the natural evolution of the negotiation strategy: advertisers will start asking to pay less for their 30 seconds' worth of that reduced number of eyeballs. Money will flow away from the TV breaks and toward that other, far more measurable medium: the internet.

Or will it? So many advertisers have already made their mark by liberally sprinkling their products throughout the plots of your favorite shows. Take Kyle XY, the ABC Family show I've become addicted to. Kyle and his "brother" use Sour Patch Kids as currency. Watched the Hallmark Channel original movies recently? Boy have I never seen such loving treatment of an automobile. The camera loves the minivan ...

And isn't the "get up at the commercial and get a snack" contingent already calculated into the equation when advertisers decide how much they'll pay?