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Researchers: TV Still Leads Web, Mobile Industry in Advertising

By Michael Dinan, TMCnet Editor

The people in charge of Web sites and online content haven’t grasped the nuances of complicated TV advertising, a hi-tech market research firm is reporting today, fortifying the “boob tube’s” status as a leading ad destination.

 

Officials from In-Stat (News - Alert) say in a new report that those in online and mobile industries don’t understand how TV advertising works.

 

According to Gerry Kaufhold, an analyst at the firm, those who buy advertising space will require “time, effort and education” to learn how to transfer what they already know about the United States’ media delivery industry from TV to online apparatuses.

 

“Customer-specific advertising that targets identifiable ethnic, cultural, language, or special interest audiences will see above-average growth rates through 2012,” Kaufhold said. “Geographic and hardware-based advertising from cable TV operators will surge forward beginning in 2010.”

 

According to In-Stat, there’s no such thing as a “one ad fits all” campaign, as advertising professionals gear their products more specifically to views at particular times. Eventually, new technology will help deliver that critical ad information, In-Stat says, through set-top boxes, computers and even mobile devices.

Yet in its report, titled “US Addressable TV Advertising,” In-Stat also points out areas that overlap or duplicate, and shows that “many delivery networks also provide exclusive content.”

 

“TV advertising is very complicated, and the incumbent TV program services will continue to control how advertising dollars are spent,” In-Stat officials say.

 

The report finds that specialized program services focused on ethnicity, language, sports and communities will continue to increase the number of customer-based TV advertising outlets. It also says that the fastest growth among advertising campaigns will come from geographic-based efforts.

 

“Key problems still to be solved include transcoding, metadata definitions, media management, and creating integrated selling and purchasing solutions that work across all the possible delivery platforms,” In-Stat officials say. “Companies to watch include MediaBank, DG FastChannel, and Run Digital Media.”

 

Michael Dinan is a TMCNet Editor. To read more of his articles, please visit his columnist page.

 

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