Media Advertising Must Adapt to Survive in 2009
Broadcasters, marketers and media buyers agree that, because we now live in a video-on-demand world in which consumers control what they watch and when, the broadcast advertising model is broken. And while the media industry is still sorting through their predicament on television, perhaps the even more troubling news is that, due to the tough economic conditions the world faces going into 2009, all indications are that online ad spending will dip over the next year. What can media companies and advertisers do in this floundering ad ecosystem? The short answer: they will have to change the way advertising is bought and sold, measured and delivered.
Traditional television audiences are eroding. In October, the four biggest broadcast networks reported declines in audiences between the ages of 18 and 49. Many analysts believe that those eyeballs are moving from television to online. Advertising Age, in a study on social networking and its impact on television, found that 25% of users of social networking sites like Facebook indicated they were spending less time watching TV because of the time they were spending online. And more than a third of all 12 – 64 year olds online indicated they used social networking sites regularly. With audiences being siphoned away from television, and using time-shifting digital video recorder (DVR) technology like TiVo to skip ads while they are watching TV, advertising dollars to be had in the broadcast medium are on the decline.
