TV networks typically get orders for $9 billion or so (nearly half of total annual advertising) in advertising commitments during the "upfront season," and, as you might suspect, expectations are somewhere between shockingly low to dangerously low. Some estimate the major broadcast networks might wind up getting $7.5 billion, a slide of between 13 to 20 percent.
New media is part of the reason; new ad targeting capabilities another. Anticipated dips in consumer spending likely are another reason. People aren't buying cars or financial products at the moment, so some advertisers seem to be scaling back their expectations for what advertising can accomplish, at least in the network TV channel.
So the issue, stated or unstated, is whether the change is temporary or secular (permanent). Certainly supporters of online or other targeted advertising channels would hope for the latter.
Some would argue that even if economic deterioration abates, there is no evidence that consumers and advertisers will revert to their previous spending habits.
So the issue is: is spending for network TV advertising on the cusp of a permanent, negative change, in large part because Web, targeted, mobile and online alternatives are becoming viable?
http://seekingalpha.com/article/139815-advertising-buy-audiences-not-media-brands?source=feed
Wednesday, May 27, 2009
Is TV Advertising Permanently Broken?
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
Consumer Feedback on Smartphone AI Isn't That Helpful
It is a truism that consumers cannot envision what they never have seen, so perhaps it is not too surprising that artificial intelligence sm...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
Is there a relationship between screen size and data consumption? One might think the answer clearly is “yes,” based on the difference bet...
1 comment:
Interesting!
In the past, offline media was one of the major mediums to promote one’s business and brand awareness. However, with the increasing popularity of the online media and its positive results, more people are turning to online marketing techniques to build a strong business presence across the globe. There are several online marketing strategies we can use for our Internet marketing solutions, but SEO (search engine optimization) today has taken a stance much ahead of any other technique.
SEO brings with it tremendous scope for business improvement with improved keyword positioning, improved ranking and overall increase in the ROI and cuts down on the PPC cost extensively in the long run. This is a proven marketing solution if done the right way using the right techniques based on your website requirements.
I thought this information would be helpful for those who wish to promote their website and get great results.
Post a Comment