Rapid TV News reports: TV Still First Choice of Advertisers

By Joseph O’Halloran

New research from SpotGenie has poured cold water on the suggestion that online TV advertising is edging out ad spending on traditional TV and that ‘explosive’ growth in the latter is imminent due to HD.

Even though the research did show that online and digital advertising is growing fast, the advertising, entertainment and broadcast digital media services provider argues that television and television advertising are not only surviving but actually thriving in the new media age, commanding the greatest share of all ad dollars in the US with more than one of every three ad dollars spent worldwide.

The data showed that the advertising mix, previously dominated by traditional media like print and broadcast, has seen US Internet ad spending grow in share from 15.4% in 2009 to a projected 25.6% in 2015. SpotGenie says that TV will continue to grab the lion’s share of advertising dollars, estimated to capture $68 billion in total US spending and 39% of total share through 2015. The company cited Nielsen data showed that overall ad spending worldwide rose 3.3% from January to September in 2012, with TV advertising up 4.3% during that period.

Commenting on the online TV advertising dog not yet barking, SpotGenie said: “Many predicted that online video viewing, made possible through services like Hulu, YouTube and Netflix, would take viewers from traditional TV. But it seems we have an insatiable appetite for media, with more people interacting online about their favourite TV shows. While Americans still spend most of their leisure time in front of a television set, 40% are now on the Internet at the same time, holding a second screen like a smartphone or tablet.”

Looking at what’s around the corner, in particular a boom in advertising through HDTV, it added: “HDTV provides a quality no computer screen can come close to matching, yet its adoption has been slow. That has just recently begun to change, and the absorption of HD in the field of advertising is growing at a rapid pace. What has kept HD ads from proliferating was the high cost of distributing the HD ad to the TV stations. In the past, this could cost anywhere from five to ten times more than distributing a Standard Definition TV ad. That has changed … Advertisers have grown tired of their brands being represented by lower quality video on HD stations. Soon those cut-off ads will be a thing of the past.”