Advertisers Tuning Out TV in Sign of Trouble for Media Companies

Television advertising sales fell 8% last year to $61.8B. This is the largest drop for a non-recession year in 20+ years.

Quote from Michael Leszega — Manager of Market Intelligence @ Magna Global.“The peak of the TV ad market was two years ago,’’

Quote from Peter Rice — CEO @ Fox TV Networks Group.“Facebook and Google are cleaning our clocks because they have targeting,’’

Adding “digital-like” targeting would be a game changer for the TV advertising industry.

How big is the opportunity? An analyst from Credit Suisse recently estimated that advanced targeting on TV could add$100B in additional ad revenue annually!

Flashback:
1) Audience-based planning is the next battleground for media agencies

2) Television’s Last Stand

3) Media Companies and Buyers Are Finally Getting Serious About Data and Audience-Targeted Advertising

Roughly 10–15% of linear TV advertising is transacted currently against customer data. Most of the focus is on the shift to addressable advertising for TV, but the bigger opportunity is combining the scale of linear TV optimized with customer data.

4) Future of TV is Apps. Not!

The math needed to generate $1 per user/month from advertising:
1) With a $20.00/CPM
2) 4 ads every 10 minutes
3) 12 minutes of ads every hour
4) $0.48/user/hour in advertising revenue
5) 2.1 hours/user/month needed

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