We watch a lot of TV! And more money is spent on TV advertising than all other mediums combined. In the article below, James argues that TV is its own strongest competitor for viewers and ad revenue. The pie may be growing but not as fast as individual pieces are shrinking.
The biggest threat to the TV advertising market is simply how much TV there is now
By JAMES ROBINSON at Pando
We’re watching more TV than ever. I’ve written it before, but for all the fuss about online video, Netflix, and how our viewing habits are changing, the market for TV ads is an undisrupted $78 billion behemoth, eclipsing the one for online video ads more than 15 times over.
That’s not to say that all is dandy for TV executives. But going off Nielsen’s State of the Media report on Advertising & Audiences released today, the biggest competition for television is television. The only force that seems to be upending the market for TV ads is the massive fragmentation of the audience.
Across the country, there are 318 million televisions and 243 million Internet-connected computers. The TV long ago reached its saturation point and the computer is close behind it. But the average American spends 175 hours each month with their TV, compared to just 18 hours combined with Netflix and Hulu. Despite the connected set-top box hype, across the entire nation penetration is so low that use averages out at just a little over an hour per person.
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