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Here's the The Lowdown from DN Journal,
updated daily
to fill you in on the latest buzz going around the domain name industry. 

The Lowdown is compiled by DN Journal Editor & Publisher Ron Jackson.

With the TV Audience Rapidly Aging, Advertisers Told to Shift Money to the Web If They Want to Reach People Under 50 

I spent nearly 20 years working in local TV where winning the ratings game was always of paramount importance. That meant beating your competitors among 18-49 year old viewers - the demographic that advertisers most want to reach. That is still the case today but for TV the competitor to be most concerned about now is the web rather than another station or TV network. That is because younger viewers are deserting TV in droves, choosing to consume their video online instead. 

Tod Sacerdoti wrote about the situation in an article titled Is Television Advertising For Old People on his Online Video Insider blog at MediaPost.com last week. Sacerdoti noted that the median age of prime time TV viewers is now close to 51. That means that more than half of the prime time audience is outside of that key 18-49 age group that advertisers pay to reach. 

This aging trend for TV has accelerated dramatically over the past five years with the median age going up a full year every year since 2005. 

Sacerdoti wrote, "They are losing their audience, which will ultimately translate into losing their revenue and relevance. If they do not commit to developing a meaningful audience off television, they will begin to lose their market capitalization."

 

Sacerdoti added that TV's loss is Google and Apple's gain. "Companies that own video consumption platforms that don't involve TV - YouTube, iPhone, iPad, etc. - are going to continue to take share from the networks that primarily reach older people. Young people are not watching less video, they are just watching less television. This nuance is more than important, it is the future of media," Sacerdoti said. 

Sacerdoti concluded by laying out the only solution TV content owners appear to have for their problem - "The audience has moved online, so it's time for the budgets to follow. Advertisers can no longer use lack of standards, measurement or cost of media execution as pretext for avoiding online advertising. The world has changed and, unless they want to advertise body spray to seniors, it is time for advertisers to do the same."

If advertisers heed that advice, it can only be good news for those who operate video rich platforms on the web.

(Posted June 28, 2010) 


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