Growing TV Ad Sales Means You Have to Add Digital

The results for TV's up-front season are showing what we have been forecasting.

• Few are getting rate increases. Fox claims the highest increase, 2-3%, while NBC is "holding out" for more.
• Overall dollar commitment to broadcast networks is down, while cable (who has been historically under-committed) will get a slight increase.

But a trend that is emerging is that many many of the traditional TV ad buys include an on-line component. On-line continues to grab share --- 12%, from 10% last year.

Advertisers realize that on-line advertising can be more targeted. Will we arrive at a point where TV advertising is nothing but a means to drive people to a web site? My good friend Buford Smith says that this is the only way a small advertiser should use TV ads.

With the latest Harris poll showing that 77% of adults are on-line for an average of 9 hours per week, this trend should continue. Smart TV ad sales will continue to combine their offers. Proving that the ads work is much more tangible!

And that's good for a media company's stock. Media General expects revenues to rise 14% to 16% this year, as their internet division is growing.

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