For all the noise and hype about the rise of online media over traditional television, what hasn’t happened is a significant accompanying flow of TV advertising dollars to digital. (link: http://www.wsj.com/articles/youtubes-quest-for-tv-advertising-dollars-1461343177 )
Yes, YouTube has had some modest success capturing dollars that once went to television. But it’s hardly been an unqualified win, and that’s ultimately because of one thing: TV still reliably delivers huge audiences for high-quality programming wrapped with high-quality ads. Those TV ads still reliably connect to advertisers’ bottom lines, pushing sales in a massive way.
TV advertising provides value for the (significant) money involved, in ways that marketers understand well. YouTube, the most successful digital video platform so far, faces questions such as pricing, where it seeks nearly the same CPMs as TV, without as clear a value proposition for marketers.
That proposition is even less clear on newer video platforms, such as Snapchat and Facebook, at least for now, as they continue to develop the business ecosystem around their huge potential audiences.
And here’s the other secret of TV advertising: it’s getting smarter. New tools are doing more of the things that digital evangelists have long claimed for their platform, providing better targeting, better understanding of audiences, better tracking of reactions and digital sharing.
YouTube’s Quest for TV Advertising Dollars
While the Google platform has had the most success siphoning off some TV ad spending, its challenges offer a cautionary tale for Facebook, Twitter
Cord-cutting is on the rise, ratings for many networks are in decline, Web video consumption is surging and there’s a new crop of stars on digital media. Surely, marketers are chasing this migration of mostly young viewers by diverting huge chunks of their television advertising budgets to digital video.
But, for the most part, that’s not happening.