TV on the way from print?
The trend toward time-shifted television (catch-up TV) is gaining momentum and will have a significant impact on the TV advertising business. This is because there is a widespread assumption that people who watch programs on a time-shifted basis skip the commercial breaks.
The increasing time-shifted usage puts Mediapulse in a difficult situation: clients, agencies and media specialists have high expectations of the new TV panel, which was set up primarily to measure web TV and time-shifted usage. However, as Mediapulse confirmed at the request of Werbewoche, the new panel cannot directly measure the extent to which advertising is skipped. (A detailed report on this can be found in the current print edition of Werbewoche).
In the longer term, the question arises as to whether the digitalization of television consumption (this includes not only catch-up TV, but also smart TV, i.e. television via the Internet) will have a similar impact on the earnings situation of TV broadcasters as the slump in print advertising as a result of the advent of the Internet over the last 15 years or so? This question is answered differently by various industry experts:
TV consumption via an online device does not change the nature of TV advertising per se - it simply gives consumers the opportunity to consume it anywhere. The option to skip advertising will certainly be used differently by different target groups. Depending on the conditions offered, target groups with a smaller daily time budget, such as people with higher incomes, will find this more appealing than broad target groups. Most of the products advertised on TV are aimed at the latter, so that an evolutionary rather than a revolutionary development can be expected.
Karen Wilbrand, Director TV, Mediabrands
No, absolutely not. As long as it is possible to measure where usage takes place, I don't see any problems. Unlike print, TV is still being consumed, only the distribution channels are changing.
Axel Beckmann, CEO, Mediacom
The comparison is flawed; we see more growth potential through digitization, as broadcasters can now sell content as well as advertising. Unlike publishers, who initially reacted cautiously to the advent of the Internet, we see more flexibility in TV broadcasters (they have probably also learned from the past).
Brigitte Gubser, CEO, Zenith Optimedia Switzerland
No, this is by no means the case! TV is stimulated by the new distribution channels, especially the Internet. In addition, there are many formats that are not or hardly ever consumed time-shifted, such as live broadcasts, current major sporting events such as the European Football Championships or the Olympic Games, sports broadcasts in general or show highlights. Linear television will continue to account for the majority of media consumption in the future and will remain a social experience.
Alexander Duphorn, CEO, Goldbach Media
We hope not, of course. Our "Media of the future" study shows that TV consumption is likely to increase slightly over the next five years. Added to this is the diverse use of audiovisual content produced by TV broadcasters on other transmission channels and other forms of use. Provided that this can be used with advertising (legislation, copyrights) and can (technical requirements and user acceptance), we certainly see opportunities to at least partially offset the expected slight decline in live TV advertising income with additional income from other vectors.
Markus Hollenstein, Head of Marketing, Publisuisse
No, I don't think so - it wasn't the Internet per se that caused print advertising to collapse. The job and real estate market has shifted to the Internet because it is much easier to use - the rest has been driven by cost and efficiency pressures. Thanks to digitization, television has significantly increased its technological reach, not least because of mobile devices such as tablets and smartphones. This provides the basis for a good earnings situation for TV broadcasters. Anyone who broadcasts exciting programs and enough live events (which no one voluntarily watches time-shifted), keeps commercial breaks to a tolerable level (length and number), offers interesting integration options for advertisers (sponsorship, placements, special formats, etc.) and does so at a good price/performance ratio will remain in business for a long time to come.
Sandro Prezzi, Managing Director, MEC
Read more about this topic in the current print edition of Werbewoche.
