Posted by jameswdcrawford on May 8, 2010 under Media | 
This is one of seven bullet points lifted from post on Boing Boing. It’s about the impact of the internet on TV.
Clearly TV isn’t dying, it’s just the business model that is changing.
The traditional TV model is dying
The broadcast model of networks like ABC and NBC is certainly under a lot of pressure, but cable networks are doing very well. Part of the problem is actually a press issue…the bigger, older broadcast networks get a disproportionate amount of coverage, so when they have issues, it can seem like all of TV is in trouble. For instance, buried at the end of this otherwise doom and gloom filled MarketWatch article is an interesting tidbit:
“Cable was again a positive note for NBC Universal in the fourth quarter, showing an 8% increase in operating profit, with solid growth at USA, Syfy, Bravo and Oxygen, Sherin said. First-quarter advertising rates at the cable networks are up more than 30%, Sherin explained, after increasing by the same amount during the fourth quarter.”
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Posted by jameswdcrawford on September 30, 2009 under Media, Online, PR |
The shift in power which now makes internet advertising a bigger revenue stream than from broadcast media has come quicker than I thought.
The report seems very credible. Although I am always sceptical of ‘data’ from Newspaper Society and the Internet Advertising Bureau, this report seems to be an accurate picture.
The fact that Britain is the first country to reach this tipping point is encouraging too. It is not that often one feels like the UK is blazing a trail.
Full story is below.
Internet overtakes television to become biggest advertising sector in the UK
Record £1.75bn online spend makes UK first major economy to spend more on web ads than TV, says IAB
The UK has become the first major economy where advertisers spend more on internet advertising than on television advertising, with a record £1.75bn online spend in the first six months of the year.
The milestone marks a watershed for the embattled TV industry, the leading ad medium in the UK for almost half a century. It has taken the internet little more than a decade to become the biggest advertising sector in the UK.
UK advertisers spent £1.75bn on internet advertising in the six months to the end of June, a 4.6% year-on-year increase, according to a report by the Internet Advertising Bureau and PricewaterhouseCoopers. To put this in perspective, in 1998, when the IAB first measured internet advertising, just £19.4m was spent online.
The internet now accounts for 23.5% of all advertising money spent in the UK, while TV ad spend accounts for 21.9% of marketing budgets.
The IAB originally predicted that internet ad spend would overtake TV at the end of 2009; however, the crippling advertising recession accelerated this by six months. TV advertising fell about 17% year on year in the first half, to about £1.6bn, according to the report.
The IAB’s figures show that of the total of £1.75bn spent on internet advertising, £1.05bn, or 60%, was spent on search advertising on websites including Google, up 6.8% year on year.
Online classified advertising grew by 10.6% year on year to £385m, about 22% of total internet ad spend. But online display advertising, such as banners on websites, fell by 5.2% year on year, to £316.5m. This was an 18% share of all internet ad spend.
The ray of light within the online display ad sector was the nascent, but rapidly growing, online video advertising sector. The IAB estimated that this sector grew by close to 300% year on year, to almost £12m.
Thinkbox, the UK TV marketing body, has taken exception to the IAB’s figures, arguing that the internet is now mature and diverse and it is inaccurate to collate all the figures as if it is one single medium.
“It is interesting but meaningless to sweep all the money spent on every aspect of online marketing into one big figure and celebrate it,” said Lindsey Clay, marketing director at Thinkbox. “Online marketing spend is made up of many things, including email, classified ads, display ads (including online TV advertising) and, overwhelmingly, search marketing. They should be judged individually.”
Guy Phillipson, the chief executive of the IAB, reckoned that there is still significant growth potential left in the internet ad market.
“We could absolutely see it grow to being a 30% medium [of share of ad spend], to go past £4bn to even £5bn annually,” he said. “Online display advertising has plenty of room for growth.”
Despite the seemingly inexorable rise of internet ad spend, a closer examination of the IAB’s figures show that the recession has had an impact. In the first quarter £920m was spent on online advertising, representing 8.6% year-on-year growth. However, in the second quarter, spend fell almost £100m to £832m, representing only a 1.1% increase on the amount spent in the same period last year.
Adam Smith, futures director at WPP’s combined media operation Group M, argued that the internet’s share of total UK ad spend could be close to its peak.
Smith cited factors such as the increasing share of time that users spend on social networking websites, which have not attracted huge advertising spend, and the increasing saturation of internet penetration in the UK as potential limiting factors. “This day was bound to arrive, as the internet has been attracting a huge long tail of advertisers that have not advertised before doing completely new things,” he said. “It is a memorable event. However, it is a bit simplistic to make this comparison [and] it is always possible that internet’s share [of total UK ad spend] could go backwards if TV has a good year.”
The UK is not the first country where internet ad spend has overtaken TV spend, Denmark reached the milestone about six months ago. But it is the first major economy to do so
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Posted by jameswdcrawford on August 20, 2009 under Opinion |
A-Levels are getting easier. Standards are slipping. The education system is in crisis.
People seem to forget that the rise in grades over the last fifteen years seems to correlate with the creation of a truly formidable study aid. The Internet.
‘When I was a lad’, revision happened in things called ‘libraries’. I used revision ‘books’ and took past papers which were photocopied from previous papers. I had to queue up to get these copies from a teacher in the staff room…
Finding knowledge and insight involved ploughing through books (if the library had them available).
A computer was a ZX Spectrum and there was no such thing as email or search engines.
Yesterday I spent the day with a client and we are about to launch a set of online “learning objects” to help study with science. This is another innovation we didn’t have ‘in my day’.
So before we all decry the performance of our youth, let’s take a moment and celebrate how as a society we have actually moved on in leaps and bounds, and be glad that our children will get better grades than us and that they won’t have to spend six weeks waiting for books, and poorly photocopied handouts. They have the world’s knowledge at their fingertips!
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© James Crawford’s PR and Media Blog. 2009
Hi. I am James Crawford, a PR man. Media relations is my specialism, but public relations is changing and the internet is at the heart of it.
I'm a Manchester dweller and lover of the media. I have too much music, support Manchester United and adore all things French.
I currently work for a Citypress, Manchester's biggest and best PR consultancy, but all the thoughts on here are my own and nothing to do with my employers.
