TV Advertising Revenue Dropping While Online Grows

You have to feel for the poor tv networks, they have taken a 12% hit in advertising revenue compared to 2009.  The findings from the Yankee Group “2009 Anywhere Advertising Forecast.” shows that although advertising as a whole dropped, internet advertising increased – mainly due to the popularity of online tv.

Advertising revenue up but only online

The tv revenue drop was much worse than the 4% forecast, during 2009 total US TV and online advertising market was worth $67 billion (compared to $77 billion for 2008). TV advertising declined 21.2%, from $52 billion to $41 billion during 2008 -2009.

Advertising online however grew during 2009, due to consumers spending longer on the internet and less time viewing television. Online ad revenues grew 8.3% between 2008 ($24 billion) and 2009 ($26 billion).

The report shows that time spent on media each day fell 14.3% between 2008 and 2009. Consumers spent about 14 hours per day on media in 2008, but only 12 hours per day in 2009. However it was mostly contributed to by the fall in traditional tv viewing.

The stats for 2009 show that US consumers spent an average of three hours and 17 minutes each day watching TV and video in 2009, compared to an average of four hours and 13 minutes a day online.

Advertisers may target the mobile market next as an insteresting fact emerged on the amount of time now spent on mobile phones each day. The average daily mobile phone useage is one hour and 18 minutes. Thus Yankee Group advises marketers and advertisers to increase their focus on online and mobile promotions.

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9 Comments

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  6. Rodrick Cuffari
    Rodrick Cuffari January 10, 2012 at 12:43 pm

    It is interesting to watch the power leaving the standard tv set and moving to mobile devices. I use my iPad wherever I am in the house to catchup on movies and missed tv shows. The advertisers know this and want their message online.

  7. Sammy Eskie
    Sammy Eskie April 5, 2012 at 5:19 pm

    Advertising stinks period. I didn’t mind it to much, but now it is getting to be way over board. I think some of their findings are wrong. People are just plain tired of paying for television services and seeing nothing but ads. In fact, they have edited television cutting down viewing time for more advertising. How is that fair to consumers who are paying for media services? I agree online TV viewing is awesome, but times are chaning and soon there will be more and more advetising with online TV. I really do beleive people are not watching TV, canceling the media services because they are fed up. Consumer do not have a choice anymore and yet are paying for it. I wished people would do more research on this issue and find the truth.

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