Television

Despite the growing popularity of viewing television content online, most adults (94%) who subscribe to cable or satellite television services prefer to watch television on traditional TV sets, according to new research conducted by The Nielsen Company for the Cable & Telecommunications Association for Marketing (CTAM).

In an addressable advertising trial in Huntsville, Alabama, Comcast Cable and Starcom have shown that relevant ads can keep viewers from fleeing commercials. Households that received specific ads based on demographic data changed channels 38 percent less often than the rest of the viewing audience. Viewers don't hate advertising ... they hate irrelevant advertising.

In a study of advertising's impact on consumer packaged goods sales, Google has found that online video works as well as TV. 30-second spots for drinks, snacks, and skin care were run on television, on YouTube, and embedded in other online content. All performed roughly the same, with an edge to embedded online video ads for influencing purchase intent. And that's just with repurposed content.

Just because consumers are currently watching free, short-form video does not necessarily indicate there is a viable business model to support viewing of traditional TV content online. Most of the evidence available suggests that online video content is supplementing and complimenting traditional TV content and viewing habits rather than replacing or supplanting them.

Advertisers have followed consumers who watch TV on the web, but it's beginning to look like a one-way street. Techies care deeply about bringing the web to their great big TVs, but most consumers don't care. Harris Interactive and Macrovision have learned that a mere 10 percent of the viewing public has any desire to watch downloaded video on their television sets. Those that do download content are content to watch it on their computer screens. Creative directors, take note: online video ads are likely to remain short and small.

The Search Engine Marketing Professional Organization released preliminary findings that media budgets are moving into search engine marketing from other marketing categories, both offline and online. SEMPO gives total search marketing spends of $9.4 billion in 2006, $12.2 billion in 2007 and estimates $18.6 billion in 2011.

A We Media/Zogby interactive poll finds 67 per cent of Americans feel traditional journalism is out of touch. The poll indicates people are moving to the Internet for their news and becoming distrustful of traditional TV and radio news to give full, unbiased coverage.

Aegis forecasts a 6 per cent increase in global advertising spend for 2008 and a 4.9 per cent increase in 2009. This study also finds the highest growth in online spending.

Results of three-plus years of research by Information Resources Inc. into DVR vs. non-DVR households show purchase of new package-goods products in DVR households was about 5% lower than in non-DVR households for IRI's industry bestselling "Pacesetter" brands and that about 20% of all brands in the study lost statistically significant volume in households with DVRs.

A full-blown recession would probably take a substantial bite out of traditional media, according to a survey of industry analysts and independent researchers. But digital media will benefit from these draw-downs as financially strapped marketing executives shift dollars online, seeking more transparent measures of ROI. In many cases, a recession would simply accelerate a long-term trend that is already underway.