TV Beats Web 158 to 3

As a true believer in the power of “New Media”, Massoutreach is always happy to announce the latest statistics about the takeover of online communications. But the truth is a bit more complex that that.  It is true that some “Old Media”, like regional newspapers [UK data: 2010 forecast -7.5% ] are dropping like a rock in terms of advertizing spending, as are national newspapers and consumer magazines. A lot of the slack, and a lot of the money, is being taken up by online vehicles like Google’s adwords. And it is also true that growth in online video is spectacular: for example, Comscore reported recently that the number of people who watch video on retail sites [US data] jumped by 40% between July 2009 and July 2010. All those trending numbers mean that a big change is afoot. However, one old medium – TV, is doing quite well. Our Blog post title – 158 vs. 3, shows the number of hours of TV watched monthly by the average American, vs. the number of hours of video watched online [numbers published by Nielsen]. More numbers: in China about 30% of people regularly use the Internet vs. 93% who watch TV. In Brazil, TV advertising was worth 15 times as much as Internet advertising last year.

The Good Old Days (Still)

Of course, most of you cannot afford TV advertising – at least the kind that would have a noticeable effect on your business. And most of you are very happy in the knowledge that your precious marketing dollars are not being sprayed at lots of people who are not interested – who have zapped past your ad spot, who are in the kitchen making a snack while your ad shows, etc. No. Your online ads are seen only by people who are in your market, people who choose to watch. Online video marketing has some far superior characteristics to TV.

The interesting statistic about Internet advertising is always the pace of change: it is growing rapidly – stealing from newspapers, radio, and in some niche areas TV.  People might see something for the first time on TV and then go online to complete their research, comparison shop, and buy. So your prospects need to see and learn what you want them to via your website, even if they originally heard something on TV that started them off. Performance-based ads – like Google’s pay-per-click service grow every year, and competitors arise monthly.

Online video, within the social media context, is the new word-of-mouth.

So, the Old Media, TV anyway, seems to be holding its own, for now. And New Media – online video, is growing exponentially.

Where do we think this is going? Let’s look at 3 prime areas:

  • Social Media
  • Interactivity
  • Mobile

Social Media – While TV is still pervasive and dominant, the growth in Social Media like Facebook, with over 500 million members, is becoming more and more a part of more and more people’s lives. Online video, within the social media context, is the new word-of-mouth. The trend is for people to be more savvy about buying, and more ‘allergic’ to advertizing generally – unless it’s very well done and packaged. TV video is that now. Web video is getting there.

Instead of putting a video into the website, you can put a website into the video.

Interactive video – an already visually interesting video story, overlaid with a click-and-get-action-NOW interface, is a very powerful medium, just getting set to explode. TV – as in Google TV, is going to move into this for sure, but the online implementation will be better.

Robert Scoble Interviews Veeple CEO

Mobile – witness the uptake of the iPad. Check out the amount of video watched on the tiny perfect screen of the iPhone. It is very clear that another trend is rapidly accelerating here: delivering content wherever you are. And delivering content relevant to where you are is happening too. And that’s not TV.

If we consider cost factors and trendlines, we see the importance of new media and online video. Online video can do you some good today, and tomorrow the action will move more and more to new media. And yes, you’ll still kick-back and watch TV some of the time too.

Some stats from an article in the October 2, 2010 issue of the Economist “The Box Rocks”.

See the Veeple Interactive Video Demo at

http://scobleizer.com/2010/09/07/cool-interactive-video-tech-from-veeple/

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