TV's power takes another beating
A new McKinsey & co. report cites a 50% drop in TV viewers and a 40% hike in prime-time TV ad spend over the last decade. According to AdAge, the report is telling a host of major marketers that by 2010, traditional TV advertising will be one-third as effective as it was in 1990.
Teens, in particular, highlight the problems facing TV:
They spend less than half as much time watching TV as typical adults do. Teens also spend 600% more time online, surfing the web.So, should advertisers abandon TV for new media? Not yet, says Amy Guggenheim Shenkan, senior practice knowledge specialist in McKinsey's San Francisco office:
No. There wouldn't be room today if everybody wanted to shift online. Last year [online media] was $12.5 billion, by end of 2007 digital advertising will be $18 to $25 billion. ... So we're seeing a lot of growth, but if you want to match up share of attention and share of dollars it couldn't happen for that reason." The TV ad industry is a $68 billion one.Adage's Bob Garfield calls that Catch-22 a "chaos scenario" - the dearth of online-ad supply and the web's generally fragmented nature will keep TV in booming business for the next several years.
So, the only thing saving TV is the fact that there isn't enough targeted inventory online.
If I'm Feedburner, Adify, FM Publishing, 9Rules, or any of the other emerging sell-side networks out there in the blogosphere, that's music to my ears.
Technorati Tags: advertising, research, tv, sellside
Monday, August 07, 2006