Saturday, July 31, 2021

WILL VIDEO KILL THE TV STAR?

May 13, 2014 by · Leave a Comment 

The growing popularity of online video is not only posing a threat to cable and satellite companies but also to the well-being of producers of content for the broadcast and cable outlets. The Wall Street Journal reported today (Tuesday) that several major advertisers have moved a portion of the money that they used to spend on TV programs to video outlets. And media buyers are predicting that even more shifts by advertisers away from traditional TV and to online video is likely to occur. Ben Jankowski, who oversees MasterCard’s advertising acknowledged that the company had moved a portion of its TV budget to online last year and will move more of it this year. “For us, it’s really about shifting to where audiences are” Laura Desmond, chief executive of Starcom MediaVest, which buys roughly $40 billion in ad time annually told the Journal. “More and more people are spending time with other channels beyond the broadcast and cable networks,” she added. To make matters worse for TV, many of those making the switch are in the 18-49 age group, the audience that TV advertisers care mostly about. “Younger consumers are consuming less TV as a portion of their total media consumption,” said Laura Henderson, associate director of communications planning and media at Mondelez, maker of Oreo cookies and Trident gum.