[opendtv] Re: News: Nets taking smaller piece of the advertising pie

<<Advertising Age -- 08/29/05>>
<< Copyright (c)2005 Crain Communications Inc. >>

...

SLOWDOWN FACTORS

The broadcast upfront for the 2005-2006 season also
saw a fall-off from last year. Estimates of advertisers'
commitments put the drop off at between $100 million to
$300 million to $9.1 billion.

Veronis cited ad-skipping technology and increased
competition from cable and the Internet as factors in
slowing growth rates. Total spending on broadcast TV
will rise from $43.1 billion in 2004 to $43.9 billion by
the year end. Another reason broadcast TV will be hard
pressed to grow: Pharmaceutical and food marketers are
facing government pressure to change advertising tactics,
and most experts expect that will prompt these players to
cut broadcast TV ad spending.

Veronis predicts the consumer Internet segment will
increase its share of overall ad spending from 6.3% to
10.8% by 2009. Ad spending on the Internet is expected to
rise from $9.6 billion in 2004 to $12.6 billion in 2005,
a much faster growth rate.
-------------------------------

Not sure I buy this. Advertizers will eventually figure
out that on the Internet, much of their product ends up
being treated almost like viruses. Pop-up ads and cookies
are now regularly blocked, adware is cleaned out, and
Microsoft sends out monthly updates to clean out so-called
malware. What remains is typically quite easy to ignore,
much like ads in newspapers or magazines.

We'll see where the wind blows in a few years. This sounds
like more Internet hype to me. The more intrusive
advertizing becomes, the more concerted the efforts to
eradicate it. Consider, for example, the do-not-call list.
I think we'll see an equilibrium, and it will be ads that
are not overly intrusive that will survive. The others
will either be actively blocked or banned by legislation.

As far as TV ads, the networks I'm sure are aware that as
their frequency increases, their viewership drops. Viewers
either stop watching or time shift and FF though the ads.
Equilibrium is reached, and I would be surprised if TV ads
will lose out compared with the other forms, long term.

Bert

 
 
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:

- Using the UNSUBSCRIBE command in your user configuration settings at 
FreeLists.org 

- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word 
unsubscribe in the subject line.

Other related posts: