The Future of TV Advertising

Tracks trends in traditional television ad sales and the impact of new technologies, new competition.

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Location: Annapolis, Maryland, United States

Proven senior level executive with over 25 years of leading turnarounds and startups of software companies in media, finance, energy and business intelligence. See more at Linked In.

Friday, June 16, 2006

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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