The online videos are starting to take the money directly until now the big brands were reserving for TV ads
Is the wound television death? Increasingly symptoms and signs that point that television is going through a difficult time and internet is taking advantage (or is causing directly) this complex situation. The statements of managers and studies that point to a change in the tide of the advertising battle no longer come to light and analyzes focus on whether or not you dying this media are the order of the day.
The latest to join the list of managers who have predicted the end of the TV (or something very close to it) has been Tim Armstrong, CEO of AOL. Armstrong has participated on a panel at a conference and told the audience how a top manager said he had changed their advertising budgets to take money from television and destine exchange, internet. The advertiser pointing to Armstrong wanted to spend that money online as quickly as possible, so the manager of AOL interpreted as a change in the trend, as published Business Insider .
Armstrong theory, or at least how he sees what is happening is that online videos are starting to take the money directly until now the big brands were reserving for TV ads . The question – and what you should do fear the television – is that this forecast Armstrong is not alone. In the list of visionaries who are hammering nail after nail in the coffin of television many industry executives and a few Internet advertising.
Not long ago, one of the managers of Omnicom Group stated in an interview in The Wall Street Journal , which had begun to refer their clients to make a change in how they organize their advertising budgets. And given that their clients are multinational heavy as Pepsi, Visa, McDonald’s or Apple’s recommendation is not advice that you will not have far-reaching implications. Omnicom has recommended they go from 10 to 25% of the money spent on TV ads internet (and especially the world of online video ads).
And can that television has not yet begun to maneuver through this current change, but internet itself is doing. Google, in fact, has started to make a great effort to maneuver to keep those advertisers: the company wants to steal the TV ads. Margins faster maneuver or market surveys are some of the tools that are pitching hand to do it.
Is TV really dying?
All these movements are not a whim of advertisers, but rather a sign of something deeper is happening. The tectonic plates of content consumption are moving. Perhaps it was simply a boutade , but can be seen as something more than that. A few days ago, Reed Hastings, CEO of Netflix, put date for the death of traditional television. It will be on 2030.
Hastings, as head of a leading VoD solutions that are leading the way in online content consumption, has every reason to launch a forecast as well (he is interested – and much – that consumers and advertisers think that TV always going to die and make way for new forms of access to content), but the fact is that (although you can get to debate whether there is exaggeration in their words) are many more clues that if traditional television is dying little lacking.
Consumers are increasingly uninterested in television, either by generational issues (input, the millennials prefer internet) or by a general change in consumer habits (the viewers have come to elements as varied and diverse as view content when they want to and not when putting them on TV a programmer or see them in VOS, which internet has driven massively).
The total blackout of television does not seem so close, but not as improbable as it was a few years ago. Although still a minority (5 million US households compared to 100 is not a figure that scares input), the Zero-TV generation is gaining strength and run and grow steadily. The members of this population have directly off television: in fact do not even have it in their homes. Digital Natives and millennials are those who champion the trend, although more and more members of other age groups that are going on television.
The Fall of television consumption among young people is also widespread. Different studies show how different countries will reduce the time spent on television as they are analyzing groups increasingly younger consumers. An analysis of Ofcom, the British CMT, showed that British teenagers longer see half of television than their parents. They prefer to access content across YouTube, Vimeo or similar sites.
The latest study by the EGM on the Spanish market also shows a slight drop in television. TV penetration in 2014 is 88.6% compared to 88.7% last year and 90.7% in 1997. It is a not very high and perhaps unrepresentative fall, but invites some meditation. Especially when compared with the graph of internet, with a penetration of 60.7% against 53.7% last year and 0.9% in 1997 (and a graph has always remained – as is logical – upward). The figures are also a bit lower if a zoom on age groups is: the penetration of television in Spain is 85.9% among those 14-19 years old, 84.3% between 20-24 and 84.4% in the 25 to 34.
More Personal content
Consumers are increasingly seeking specialized content (thematic channels are those with the highest percentage of share according to the EGM on television, ahead of all others, including Telecinco) and closer to their interests. The consumption demand content is therefore very much in line with it (YouTube is by far the leading destination for online browsing in Spain, also according to the EGM).
In addition, viewers have a harder time identifying with television viewing than it did before them. US chains are, for example, losing to women as spectators in a very striking way. The contents of traditional television fail to arouse their interest and products created in theory to measure, series like The Mindy Project or New Girl , are failing to keep their ratios very high audience.
And in general, consumers are demanding increasingly able to make their own schedules. Televisions are turning content on their sites and are using online services and tools that are based on elements like the cloud to provide greater flexibility to consumers (there are rewound services that have begun to appear in the pay-TV platforms: You can see the program for a period of time on demand and on demand without cost).
Other chains, as with those born American broadcasters for cable platforms (how to access the most common commercial television in the US), are now focusing their efforts on internet directly. Signatures as influential as HBO or CBS has begun marketing free internet subscriptions, which allow Internet users pay only for view its contents in the web without having to register a cable subscription. The traditional TV channels thus become like Netflix or Hulu platforms and possibly lead the way to follow the market in the coming years.
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