Social Media Advertising V/S Television Advertising
Recently a report issued by Magna Global predicting a major changes of 8.3 percent for U.S. TV advertising revenue for 2014, continuing 2013 in which ad revenues were down by 0.6 percent. But there's been a shocking change: For the first time TV advertising is now smaller than overrall digital advertising in US.
Many factors which bought this change including The World Cup, advertising by political aspirants, and the Olympics games are some of the factors contributing to the change, said Vincent Letang, Global's evp forecasting. Letang also observed serious movement in the global mobile devices markets, among various other trends—including that digital advertising will leave behind total TV by 2018.
"National TV got revenue from the Olympics games in the first quarter. Local TV seems gaining from political and health-related advertisement campaigns throughout the year. Hispanic TV will be gaining momentum by the Football World Cup," report observes. Letang added that "In fact there is really a 2 cycle to TV." "Political Elections make a large difference for United states television," he said. "Television is competition to digital media communication and still stealing market revenue share from other traditional advertising mediums. People are not ready to put money in print and investing it in digital but still many in television."
But the value additions to digital are very obvious. Indeed, said Vincent, digital media advertising is bound to increase by 15.9 % globally this year,but only since a comparatively weak increment in non mobile viewing (where the majority of the moolah lies currently) of 8 percent drags down an awesome 61 % jump in global mobile advertisement. Major contribution to the successful story of Facebook is having with mobile apps and wireless mobile usage," said Vincent. "In some asian markets like India for example, mobile devices is the bulk of all users,the desktop is probably lower in mobile. But we can run Facebook social media on relatively simple mobile apps on even economical feature phones. So that explains pretty well the rise of social media in nations without tablet or smart phone penetration." Cheaper applications, in fact, result in much larger adoption globally.
About the World Cup, Letang said the fight is "bigger than it's ever before as it's Brazil, so it's attracting the interest even of normal casual viewers who are not necessarily football fans." Although Letang believes that the real competition is "optimizing for Europe," he feels it's going to be larger every cycle, and global companies and brands are noticing it. "It seems helping the digital media revenue," Letang said. "It's not about TV only these days; it's about internet,social and online video replays we like to share with our friends. It's about repeated viewings."
In Indian scenario, although digital advertising, in any format ,be it cell phones,using internet on laptops,ipad's, tablets is far behind from TV but the trends are changing at quite alarming pace. Keeping this in mind, most of the renowned TV channels have started (or planning to start), online news and live broadcasting as well inorder to stay relevant in this fast changing dynamics of advertising revenue model. - Source Adweek
