Google is Larger Than Any TV Network

The buzz this week is all about the annual up-front orgy of ad spending commitments on networks, especially the traditional broadcast networks.

Will the networks get an increase? (Very difficult) Will they sell a substantial part of their inventory up-front? (Tough, too)

Time to pause and look at the real trends. According to the TVB (see chart left), the broadcast industry's trade association, network TV prime time viewing minutes have decreased 60% since 1980, while their average CPM has increased 466%!! (Nice job if you can get it!!)

As the same time, DVR's and on-demand programming are growing. Advertisers can get interactive display ads on the internet for $1 - $5 CPM or 30% to 40% more if they are targeted.

Impact? They're moving their ad dollars. Google, despite click fraud concerns, will end up with $6.1 Billion in revenues, mainly from click-ads. (Sources: TVB and Google annual reports). In 5 short years, Google is larger than any TV network. And you can see why! Lower costs, more feedback and more eyeballs!

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