Friday, 2 May 2014

Online Broadcasters high end shows, are getting get into the traditional TV Ad market. Another sign of TV's decline.



The global TV advertising market is something close to $300 billion. The online part of this is about 8%, the rest (ridiculously) going to traditional TV Stations. Although online video advertising surged +44% last year.

Younger audiences, a key demographic, are now more online with digital video, than watching TV. Almost in every country.

So online broadcasters want a cut of that spend, as they develop and as their audiences switch away from traditional TV. 

You'll see my other blogs following - about the decline of TV, decline of Cable (pay) TV and how broadcasters such as ITV/Comcast are investing fortunes into content creation for online.

The decline of Cable TV is in fact, a direct switch by consumers towards online broadcasters.

It's a massive wave.
It's also massive that these online shows are being watched on multi devices in the home. They're watching something in the region of 15 hours a week (versus 33 hours watching TV).

Netflix's 'House of cards' and 'Orange is the new black' and others, are showing advertisers the way. Of course too, as I often say, ad money follows audience, so the real task here is to drive viewers and it is happening.

Indeed, online broadcasters are using traditional media (notably Outdoor) to promote their shows.

However, online ad rates remain high but are decreasing. And of course, sponsorship on online programmes is working.

Fundamentally too, digital advertising generates direct measurable response which traditional TV cannot do. You cannot click a TV Commercial.

But as online broadcasters get better and better at producing online digital video content, the eyeballs will follow and so too, the advertising. 

The time lag is really down to agency media planners who are moving slowly and older marketing managers who haven't got to grips with the way it's changing so fast.

Content is still....king.