Tuesday, December 7, 2010

TV Advertising Not Dead

Despite multiple screens that access video programming, the big screen in the house (in the living room, bedroom, kitchen, or perhaps in all three rooms) remains the best experience to watch video programming. HDTV sets, DVRs, sound systems, and such all make the home viewing experience ideal. And the consumer agrees. "Mr. Wieser (Brian Wieser, global director for forecasting at Magna Global) said he foresaw no dire effects on traditional television from the growth of what is known as over-the-top TV, which is delivery of programming through the Internet".

And because TV remains popular, TV advertising is also doing well. "TV is, by his estimates, still gaining share of the overall advertising market, he added, to 40.7 percent in 2010, from 37 percent in 2005." Certainly, slow improvements in the economy are also helping other mediums as well, including print. But the fear that TV's share would erode from computers, smart phones, or tablets, may not be true. While these devices provide flexibility of viewership, they more likely increase viewership usage, not replace the TV set.

With tax cuts being extended by Congress, and more disposable income in the hands of consumers, more ad spending should occur to help push dollars from the wallet into business hands. And with more consumer spending should come more tax revenue. Television programming remains healthy; perhaps another reason Comcast wants to buy NBC.