Though television may be losing viewers to online video, it continues to hold advertisers. Fewer people have been watching traditional TV channels so far this TV season, the first such decline since at least 2007.
Here are some details, punctuated by my favorite “cringe worthy” quote of television versus online video.
The Wall Street Journal’s Suzanne Vranica and Sam Schechner reported on television and online-video advertising changes as “up fronts” approach. Upfronts are when advertisers commit dollars to the mediums, and Morgan Stanley projects that…
broadcast networks’ “upfront” will rise 1% to $9.16 billion, and that cable-network upfront commitments will increase 4.3% to $9.68 billion.
This year, for the first time formally, online-video companies, including Google and Yahoo, are holding upfront-like ad-sales presentations this week and next. Online-video networks will showcase new webisodes, and YouTube will boast of its new “originals.”
Ultimately, advertisers continue to see television as a place to scale, and media buyers have historically been very tentative about adjusting to new mediums. However online video is an easier conceptual leap for even the thickest media buyers.
Here’s that favorite cringe-worthy quote by UBS Securities analyst John Janedis:
“There is a lack of confidence around the measurement of online video at this point and that means it will be challenging to see big money move from TV to online this year,” added Mr. Janedis.