Continuing on from last week’s theme of the predicted strength of advertising spend growth on TV and the Internet, its inevitable that this would point to an acceleration in convergence between the two.
The significance of this headline and the underlying technology change driving it is the merging of the TV or home display panel with the PC. An internet connected TV will not require a PC or separate source “box” allow viewing of internet sourced content ranging from YouTube to ABC TV’s iView http://www.abc.net.au/iview/ .
Enform believes that this development is one of the most significant steps that will define the usage and relevance of consumer media in the next few decades as it directly challenges broadcast TV’s monopoly on delivering rich “moving image” content to audiences. With this, the YouTube phenomenon finally moves from the study to the lounge room. The ramifications to advertisers and markets are significant.
Some highlights to consider;
- Google is in a partnership with Sony and Intel to make televisions act more like PCs, allowing users to access any site they want.
- The shift may give television a much-needed boost, making it once again of vital importance to American viewers. TV is seeing its influence begin to decline among consumers.
- The latest Infinite Dial study by Arbitron and Edison Research showed that, for the first time, the internet surpassed TV as the “most essential” medium.
- Per the survey: 49% chose to eliminate TV, compared to just over 48% who said they would get rid of the internet.
- When first asked the question in 2001, 72% said they would do without the internet, while just 26% said they would eliminate television.
Clearly a blurring of the lines and amalgamation of the channel streams is the inevitable future.
“It’s like TV Jim, but not as we know it.”
*Source www.mediabuyerplanner.com April 11, 2010