Is TV dying?
I suppose I should say not TV in general but TV advertising (the state of TV as we know it today is another post on another day).
I find it very entertaining and interesting to watch advertisers restructure and redirect how and where their marketing dollars are spent.
Yes, most folks know that "social media" is pretty much the latest and greatest thing since sliced bread, especially if the conversation mentions the word "Web" and the numbers "2.0".
The great riddle is how to harness it and even more importantly, how to monetize it.
Take a look around and you will notice all of the major television networks trying to generate conversation and interaction between viewers. This, really in an effort to draw people into their websites.
That is what the networks are doing, but what are the companies that typically advertise on those networks broadcasts doing.
The answer is… not spending anywhere close to what they used to on TV ad time.
I recently read the results of a very interesting Forrester Study that details this exact topic.
Here are a few of the findings:
Sixty-two percent of marketers believe television advertising has become less effective in the past two years, but close to half of the advertisers surveyed have already started to experiment with new ad types to work with DVRs and VOD programs. Eighty-seven percent of advertisers believe branded entertainment will play a stronger role in TV advertising in the coming year.
Advertisers are eager to try new ad formats, including ads in online TV shows (65 percent), ads embedded in VOD (55 percent), interactive television ads (43 percent), and ads within the set top box menu (32 percent)
Over 50 percent of marketers reported that when half of all TV households use DVRs, they will cut spending on TV advertising by 12 percent.
Eighty-seven percent of respondents said they intend to spend more on Web advertising this year.
Seventy-two percent of marketers are very interested in having individual commercial ratings rather than average commercial ratings.
Ah yes, did you notice the mention there of the DVR. That technology alone is singlehandedly giving TV advertising a hard spanking. All one has to do is record, and then start watching a show 10 minutes into that same show. Do that and you can fast forward through all of the commercials. You no longer have to watch a single one.
So what next?
What will happen as more people do their TV viewing through the computer?
Can you say "Opportunity" for those individuals and companies that understand and can harness the Internet as an interactive, marketing channel.
Well, this is all new enough that the jury is still out, but TV and more specifically TV advertising seems to be a dying breed.