Economic Views

Internet kills the video star?


Television is changing and internet giants like Google and Facebook are poised to prosper as a result. James Gautrey examines the opportunity that this presents.

Advertising dollars have been consistently shifting towards internet platforms for the last fifteen years or so. Only 2% of global advertising budgets were spent online in 1999; today it is almost 30%. Budgets continue to shift towards social networks, search engines and, to a lesser extent, display adverts as consumers’’ time spent online continues to rise. In the US, 2012 marked the first year the average adult spent more time online than watching television. Advertisers themselves not only follow the consumer’s eyeballs as they move from TV to internet; they also enjoy a far greater ability to target and subsequently measure effectiveness of their ads. However, while the shift to internet from traditional sources will almost certainly continue, a significant challenge is beginning to emerge: the need to win in TV. While other areas have yielded huge gains to the internet, TV has remained almost unscathed in terms of market share losses.

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Internet kills the video star? 5 pages | 332 kb


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