Thursday, March 31, 2011

Online commercials growing, TV commercials dropping...

TV networks have dropped 12% in advertising revenue since 2009. Internet advertising has increased due mainly to online TV becoming so popular. Why is this happening? With websites such as Hulu, you are able to watch TV shows on your own convenient time, with minimal commercials. Advertising is starting to catch on and shifting their revenue to online advertising because more and more people are spending majority of time on their computers and less time on the couch.
Recently as we’ve been discussing in class how advertising online is much more controllable. Marketers are able to control, manage, and make changes quicker. Online marketing can be managed by measuring clicks and views.
The costs of online ads are also cheaper. Instead of producing a commercial video, companies are able to make ads or banners that stand out to consumers, similar to the goal of commercials.  Marketers are able to control how much they pay, when ad is shown both location on page and what sites, and determine the most efficient buys.
Why watch TV and worry about commercials you don't care about? Businesses are catching on to how consumers are thinking. Businesses are spending more time on their online advertising. But people are not only spending time online watching TV shows, but shopping as well. This is a graph of how often online shoppers shop online:

This is another graph showing how online users have reacted to online ads:

These two graphs are only two examples of many out there that show how well online advertising is working. Why inconveniently watch TV when you can watch shows online with less commercials wasting your time? Marketers are beginning to catch on and TV networks revenue is dropping.



  1. When you say "online advertising" I assume you refer to "display advertising" (since you mentioned banner ads). There is another form of online marketing when it comes to TV shows online. One is of course, running Google text ads that appear on YouTube videos. With shows on Hulu however, you also find short 10-15 second ads as a trailer of the main video. But you can't fast-forward as with TV commercials.

  2. Yes, I was refering to "display advertising". That's a great point, about ads that are used on websites such as Hulu. Hulu is sometimes used to miss the commercials, but viewers are still stuck with them. I like Hulu's commercials cause they are short and sweet, and usually pertain to the type of viewer (similar to the show you're watching).