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Viewing report
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TV Trends: Consumers Demand Control
eMarketer, June 2008, Pages: 24
While the average amount of TV content consumed by US viewers has grown over the past decade, an increasing proportion of TV is being accessed and viewed in nontraditional ways. Video-on-demand (VOD), digital video recorders (DVRs), the broadband Web and 3G mobile phones are giving consumers new ways to access and watch TV. eMarketer estimates that by 2012 nearly 25% of all TV content watched will be time-shifted, on demand, on the Web or on a mobile device.
This does not spell the end of the traditional live TV broadcast or 30-second ad break, but, clearly, TV advertising will need to evolve if it is to keep pace with consumer usage.
Despite a slowing economy, US TV advertising spending is likely to grow in 2008 on the back of the presidential election and the Summer Olympics. But in 2009 and beyond, the traditional TV advertising environment will become increasingly challenging. This report estimates that TV advertising spending will reach $75.4 billion in 2012, up from $67.8 billion in 2007—a compound annual growth rate (CAGR) of only 2.1%. Online advertising spending, in contrast, is forecast to grow annually at 19.2% over the same period and will overtake TV advertising spending in the US within 10 years.
The TV sector is rapidly being subsumed into the larger video sector, where traditional boundaries between devices, content and usage are increasingly blurred. Traditional TV broadcasters and advertisers have little time to reinvent themselves and their organizations to take advantage of the interactive, on-demand and mobile video future.
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