Money movement

The real pressure on any business is found in its spreadsheet, and that’s certainly the case with broadcasters. We can talk theory until we’re blue in the face, but until something impacts the bottom line, most companies — to their detriment — don’t give a ripple chip. This is why the movement of money from the broadcast world to the web is so significant, and something we watch closely.

We’ve heard from several research companies this week about the growth of online revenue, and there’s really no consensus on the matter, except that the flow of money to the Web will continue. There are so many variables and so many unknowns that’s impossible for anybody to be certain about how much and when, and this is what causes sleepless nights for media executives.

On Monday, the folks at eMarketer released a report stating the online ad revenue growth was “slowing.” One of the projections in the study was that ad spending online in the U.S. would reach $36.5 billion by 2011, which would be 11.3% of all ad spending.

Today, investment bank Jefferies & Co. projected global online ad spending would be a $60 billion market by 2010 and essentially agreed with eMarketer about spending in the U.S. Jefferies projects that online will represent nearly 10% of total ad spending in the U.S. by 2010 and added that “the online channel is quickly becoming a mainstream marketing channel with proven return on investment.”

These are big numbers and the only thing the various research companies agree on is that search will continue to drive revenue growth, and this is why it’s so important for broadcasters to pay attention. Video search is the next frontier, and where is your company in that space? Are you blowing away online videos after a week? A month? Why are you doing that?

eMarketer senior analyst David Hallerman wrote in his report, “As we move into the next decade, marketers will put more of their online budgets into video and other rich media categories than they do into display ads, banners and other static placements.” He added that even if the economy slows, the continued growth of the online audience and attendant advertising will drive an ongoing shift away from other media, especially radio and newspapers.

Comments

  1. i pondered the idea “the web is NOT tv”

    actually it was over a 20 oz. heineken, but that’s another matter.

    WHY is it not tv?

    WHO says it is not tv?

    seems like it would be a great rallying cry for tv to say the web is NOT TV!

    actually, it could be tv. and it will BE tv .

    coming are the days of:

    no more dma’s.

    no more expensive transmitters.

    no more excessive regulation.

    no more million dollar sat. trucks either.

    but, for today, it’s not tv.

    thank goodness.

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