Internet and TV

55% of TVs to Be Internet-Connected by 2013*

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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/ .

55% of TVs will be Internet Connected

TVs will be Internet Connected by 2013

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

TV, Internet Will Lead Advertising Back Up As Print Wanes

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Publicis Groupe’s ZenithOptimedia is revising up its forecast of 2010 global advertising growth from 0.9 percent to 2.2 percent – its second consecutive upgrade following 18 months of downgrades.

Across the media, it’s largely thanks to an anticipated 4.3 percent more TV ad money and 12.9 percent more online ad spending. But newspapers and magazines are each forecast to lose about four percent of their ad income this year.


Multimedia share: TV, which captures forty percent of all ad spend, is expected to gain more and more share over the next few years. ZenithOptimedia reckons the internet will find 13.9 percent of all ad money this year, rising to 17.1 percent by 2012. But newspapers, magazines and radio will find their share decline over that period. The internet already overtook magazines for ad share in 2009, when it hit 12.6 percent.

Internet figs: Specifically, the internet is forecast to make $62.6 billion from ads this year, rising to $71.9 billion in 2011 and $83.9 billion in 2012. The medium’s “engine of growth” is paid search, which took half of all online ad dollars last year and is forecast to increase that share over the next few years.

graph 2

Online display spending has fallen from 33 percent in 2008 to 32 percent in 2009 and is expected to decline to 31.7 percent in 2010. But Zenith reckons online video ads and other new formats will kickstart a turnaround in 2011 and 2012.

Geographies: North America is forecast to be down 1.5 percent this year, western Europe up 0.37 percent, Asia-Pacific up 5.9 percent, central and eastern Europe up 5.6 percent, Latin America up 9.2 percent and Africa/MiddleEast/Rest Of World will be up 6.3 percent.

Robert Andrews – www.paidContent.co.uk April 7, 2010