Monday, 16 December 2013
Television at the tipping point now. Financial Times story will accelerate TV's demise.
TV is actually on a tipping point.
A lot of us take the view that traditional TV is dying at a rapid pace but Saturday's story in the illustrious 'Financial Times' will only hasten things. It's a paper well read, by CEO's and Marketing Directors.
The story is based around new Advertising spend data which shows, that after three consecutive decades of growth, it has finally peaked this year and now starting to decline - the tipping point.
TV should capture 40% of the global 532 billion usd ad market in 2013 and then start falling. That data came from none other than Publicis ZenithOptimedia, reliable a source as you'll find. That 40% share will now go into steep decline.
This is of course due to the rise of digital.
The explosion of digital across multi-screens, was going to hit TV hardest always and in particular, the reluctance (ongoing reluctance) of TV stations to get involved with digital, has further accelerated their demise.
A new breed of marketers too, has brought an opportunity to change and online video is also now a far sexier media buy, than traditional TV.
For example, YouTube is surging + 50% with 66 billion usd in revenue this year. Google is also powering ahead on their GDN network.
It is good news for digital providers and another breakthrough in their fight with TV stations who went to lengths initially, to try and put them out of business.
But like a lot of businesses that simply refuse to accept digital as even an option, they lose out. And TV is digital's biggest scalp.