May 30th, 2008

Decrease in TV Advertising?

Over the past several years, there has been much speculation that television advertising will eventually go away.  Ratings are down, it is cheaper to buy online advertising–not to mention more targeted–and who watches commercials anyway since the introduction of DVR?  BusinessWeek reported on this year’s upfronts:

“A digitized world has crushed the music industry and is not crushing just about every other medium, too.  But at least when it comes to the hearts and dollars of advertisers, TV remains the tallest tree in the forest….This is America, and even today nothing announces status quite like being on TV.”

“In reality, many top advertisers are moving dollars away from TV very slowly, if at all.”

Even with all the talk of a coming decline in television advertising, the spending doesn’t seem to reflect the movement yet.  What will happen?

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