Posted on 08/31/2007 4:37:53 AM PDT by abb
INTERNET AD REVENUES ARE SET to pass radio's for the first time, according to eMarketer, a firm that tracks and analyzes spending trends across various media. EMarketer is pegging Internet ad spending at $21.7 billion, compared to $20.4 billion for radio.
eMarketer's report comes as the Internet already has surpassed outdoor ad spending, and as a recent report from equity firm Veronis Suhler Stevenson predicts that the Internet will displace television as the No. 1 ad medium by 2011.
While this news is unlikely to cheer radio advertisers, it's more a testament to the feverish rate of Net growth than any secular downturn in radio. In fact, radio is also expected to grow modestly in 2007, with a 1.5% increase. Total radio revenues grew 1% in the first quarter of 2007, according to the Radio Advertising Bureau, due mostly to a 1% increase in local revenues and a 10% increase in non-spot. Second-quarter figures aren't yet available.
Still, radio's predicted 1.5% growth rate looks decidedly sluggish next to expected online revenue growth of 22% in 2007. And it's the second major medium to be passed by the Internet.
The Internet first eclipsed outdoor in 2000, when revenues totaled $8 billion, compared to $5.24 billion for outdoor. Outdoor is a success story in its own right, with 8% annual growth rates--but trails the Internet, with total revenues of $6.8 billion in 2006, versus $16.9 billion for online.
In a sign of the Internet's importance, online revenues are a key growth area for radio. According to eMarketer's Ben Macklin, various kinds of Internet advertising will be "principal drivers for radio advertising growth" in future.
Indeed, radio broadcasters and ad sales networks have moved quickly in recent months to bulk up their online sales capabilities. In July, Katz Media Group acquired Net Radio Sales, renamed Katz Net Radio Sales--allowing advertisers to deliver ads across a variety of audio and Web-based platforms, including hundreds of station Web sites in its digital network. The company also provides a variety of interactive ads to station Web sites.
Also in July, Ronning Lipset Radio announced that it had partnered with Corstarr to use its Adcor technology for delivering Internet radio ads. Adcor allows broadcasters to set up multiple radio channels and deliver ads across one or all of them, targeting audiences by demographic characteristics and daypart.
Finally, TargetSpot has signed up a slew of big radio broadcasters for its online service, which allows advertisers to create and place streaming audio ads synced with banner displays on radio Web sites. TargetSpot's list of partners includes CBS, Entercom and Warp Radio.
...equity firm Veronis Suhler Stevenson predicts that the Internet will displace television as the No. 1 ad medium by 2011.
By the end of this decade or shortly thereafter, television “networks” as we know them today will cease to exist. After the ‘08 elections, network news divisions will be disbanded and their evening news broadcasts will go dark.
ping
BTTT
Easy to understand why. The small to average sized business can advertise their products nationwide on the internet without the prohibitive costs of TV, radio, or newspaper ads.
You ain’t seen nuthin’ yet, baby!
“Journalists” (so-called) take note, watch yer money-making @$$e$!
In the not-too-distant viewing future, commercials will be part of the storyline for television shows.
We will probably see commercials take the form of discussion between characters. "Grissom. How do you like your new Apple laptop?"
"Well Nick, it certainly is better than that other laptop I had. It gave me the 'Blue screen of death' one time too many and I just threw it out the Windows.
"When you are pressed for time on an important case you can't afford to wait for a service pack to install."
"Say, are those Oreo cookies you're eating? I haven't had them in years."
"Well, they're just as good as they ever were. Especially with milk which does a body good."
It’s already here.
http://www.mediabuyerplanner.com/2007/06/04/nbcs-silverman-seen-as-advertiser-ally/
NBC’s Silverman Seen as Advertiser Ally
Ben Silverman, NBC Entertainment and NBC Universal Television Studio’s new co-chair, has done so many reality shows with *PRODUCT INTEGRATIONS* that many media agency executives see him as possibly the most advertiser-friendly executive to become head of programming at a broadcast network.
Funny thing is this is a “back to the future” move.
This was done all the time in the 50s! Especially for coffee and such.
SPAM is not a credible ad medium.
Or it can go “the other way” and have “miniepisode” commecials with the cast/characters of tv shows (and this was done in the “golden age” of television too.
We see it with the Simpsons but few other shows’ characters at this point.
Just last night, I was watching an animation of a dogfight (that's with airplanes, not the Michael Vick kind...), and they threw a bug up over one of the planes.
Plus, it's marketing for one of their own shows that doesn't interest me at all, and even if it did, I'd already be a fan and would be on the lookout for it.
So now, they just ticked me off, and I'm already on the verge of chucking cable now. If I can't get either decent news or documentaries, what's the point of paying for it?
The only thing worse than the bugs is the increasing size of the watermarks, also advertising shows.
Maybe they should look at what happened to X10 with that abuse in internet advertising.
I guess there's always downloading from Gutenberg.org...
A need for hours of audio books recently surfaced in preparation for a road trip. Audio books on Project Gutenberg beaconed as an alternative to commercial fare. A savings of $20 - $30 per commercial audio book of questionable content motivated me to download free audio books of questionable quality from Gutenberg. It turns out that amateur actors can do a fair job of reading a book.
A chance download of several audio books by Piper, H. Beam, 1904-1964 (a heretofore unknown author to me) paid off marvelously. Great stories like a woman who exploits the period table as a Rosetta stone to translate ancient Martian. Just the sort of stories that liberal Asimovians such as Gardner Dozois hate.
I read thousands of manuscripts then, and continued to do so later, as editor of Asimov's Science Fiction, from duds to instant classics to near misses to outright plagiarisms - and I'm here to tell you that, with the exception of those turned down because they were illiterate or indecipherable, most of the science fiction stories that came into the slush pile were rejected because they suffered from what I cam to call the 1950 syndrome.... Everyone is unflaggingly and unquestionably patriotic. Everyone is smugly contented. They are all the most trusting of optimists.
I tried one of Burroughs's "Mars" books recorded that way, and got "listening fatigue" quite quickly.
The Speex encoded stuff is okay, but still somewhat fatiguing. Maybe it's just a matter of getting use to it.
I like radio. It’s my primary source of local news. Plus it has good talkers on AM
This article would be better if it LISTED the top 6 ad mediums.
So I’ll try:
1. TV
2. Newspapers
3. direct mail
4. Internet
5. radio
6. Billboards
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