This should come as no surprise, but never underestimate the perpetual pining for the fjords among major media companies — but not among advertisers — hoping that this whole Interweb/iPod/YouTube stuff is a fad. The following is a little on the biz-speak turgid side, but it does make some important points about media, advertising, and some signals that will show up in the current upfront ad-selling season:
The substantial revenue generated by the broadcast and cable upfront is
more a result of long-standing process than logic. The billions of
dollars generated for the broadcast and cable networks persist on this
imprecise practice of guaranteeing a reach of demographic viewers.
Nielsen Co. and others are struggling to improve their techniques for
measuring audiences for this medium at a time when television
programming is extended to more digital platforms than ever before, and
a click of a computer mouse can render a frighteningly detailed
snapshot of a user.
… The smart advertisers simply doesn’t care if frequent YouTube visitors
watch less television because they plan to be on whatever media
platform best facilitates their connection with target consumers at a
cost-effective price. How much and how fast advertisers shift their
spending around from television to interactive media platforms is the
billion dollar question–a perturbing answer to which will give way to
a slew of new advertising business models to go around.
The nagging dichotomy between advertising form,
function and price on traditional TV and on the Internet is in the
process of rendering a new hybrid standard to extend across all media
[via Hollywood Reporter]