Traditional TV Ad Revenue Predicted to Plunge (Dinosaur Media DeathWatch™)

World Screen ^ | March 11, 2009 | Kristin Brzoznowski

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Revenues from traditional television spot ads are expected to fall by 75 percent within 10 years, resulting in a market worth $13.1 billion in the U.S., according to analysis from Generator Research.

In its report, "Television Advertising: An Irreversible Decline?," Generator predicts that only 25 percent of television advertising by 2019 will be the ad spot as we've come to know it. Rather, the future may lie in delivering three types of targeted ads over the Internet. The first would be delivered to Internet-enabled TV sets or set-top boxes. Generator expects this to account for 30 percent of all TV advertising by 2019, representing $1.8 billion in the U.K. and $17.6 billion in the U.S. The second would feature targeted ads served to PCs or portable devices that can be used to view television programming. According to projections, this could account for 24 percent of the total ad-revenue pie. The third form involves broadcasters delivering scheduled programming from their existing infrastructure, yet targeted commercials being delivered over the Internet to broadband-enabled TV sets. This market could deliver some 21 percent of ad revenue by 2019, or $12.1 billion in the U.S.

"This could be the beginning of a slippery slope for the television broadcasters who are about to experience what it means to lose control of a distribution monopoly, just like the music industry," commented Andrew Sheehy, the head of research at Generator. "The biggest losers will be the terrestrial networks who have no way of delivering their own ads over the internet to television sets. This problem is solvable, but it will take a big effort."

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"By the end of this decade or shortly thereafter, television networks as we know them today will cease to exist. They will be just another url on the world wide web competing against millions of others."

"Network evening newscasts will go dark after the '08 elections and their news divisions disbanded."

Walter Abbott, (b. 1950), Media observer and commentator

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http://biz.yahoo.com/bw/090310/20090310005914.html?.v=1
Generator Research Predicts Traditional TV Ad Revenue Will Fall by 75% within 10 Years

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ping

[sr4402]

Businesses have figured out that the media is against them. Thus advertising is paying for not only advertisement for the company or product, but also in the nightly news against them. And businesses have figured out that that which is against them is worse. Thus the looking into alternative advertising such as the Internet, etc.

I.E. The media are shooting themselves in the foot.

PS: Also ask yourself is the media want Republican viewers or listeners. If you answer that honestly, you will find out why so viewers and listeners leave the media every day.

Just another example of Shot themselves in the Foot AWARDS.

[abb]

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[Myrddin]

TV advertising? I see very little. Only the commercials interspersed in a new, weekly episode of ER. My one hour of weekly broadcast TV viewing has about 3 episodes left. After that, the TV becomes simply a DVD/BluRay video monitor. I ditched $85/month DishNet HD last month. A big expense for something I never watched. No cable here either. I hear local business ads on AM radio...during the Rush Limbaugh time frame. Fox News at the top of the hour...AM radio for 5 minutes. Mark Levin - XM radio.

TV is mostly crap content mixed with even more offensively stupid ads. It's a waste of time and electricity.

[TenthAmendmentChampion]

I just realized last night that we are pretty much glued to Fox News each night. I can’t remember the last network show we watched. It’s NASCAR, NHRA and baseball/football/sports on weekends.

[dbrew2u]

What are the Sports Leagues of the future going to do ? Baseball and Football & Basketball are able to pay their players huge sums of money because of TV ad revenue. I would hate to think that a Baseball Player may have to live on 10 million a year.

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What are the Sports Leagues of the future going to do ? Baseball and Football & Basketball are able to pay their players huge sums of money because of TV ad revenue.

There will still be "television" viewing of sporting events. But it will be via the internet and on a network owned by the sports leagues. There is no longer need for the NFL (or MLB or NBA) to utilize the antiquated distribution systems of NBCABCCBSFOX.

[buccaneer81]

You could tell what was coming when a company like “Cash For Gold” ran a Super Bowl spot. Next year we’ll be watching the “Sham-Wow Halftime Show.”

[Clay Moore]

Does this mean that there will be over 40 minutes of ads per hour? /s This could free up 30 minutes of my life per week by eliminating the last TV show (Simpson’s) I still watch. And that is DVR and skip the commercials.

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[MrEdd]

I noticed Melanie Sill still made the cut at the Sac Bee.
I hope that whole paper follows the Rocky by mid summer.

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http://www.marketwatch.com/News/Story/Story.aspx?guid={CF03CAD8-FD63-4B67-8159-C3D85A5FE2C2}&siteid=nbih
U.S. advertising seen plunging 13% in 2009