Researcher sees good news for TV


Parks Associates expect that an advertising turnaround for traditional broadcast television will take place this year – and that its long-term future looks good as well, as it begins to adopt digital technology to add targeted interactive options to clients.

Parks says 2010 income will return to pre-recession levels, but notes that the real key to future success will involve the incorporation of digital capabilities, which will allow broadcaster to charge a premium for air time.

A majority of advertisers would pay extra for addressable spots, with 40% willing to pay upwards of 20% extra for the enhancement.

“As digital media consumption increases, advertisers are incorporating emerging advertising platforms into their overall media mix, with particular emphasis on interactivity and personalization to capture consumer attention,” said Parks analyst Heather Way. “This new focus in advertising opens new revenue opportunities for content and service providers, who can build partnerships with agency decision makers to create truly innovative advertising delivery solutions.”

RBR-TVBR observation: There should be no need to sell any broadcaster on the vital importance of harnessing digital technology. But nevertheless, here is one more piece of evidence, which if nothing else should provide some peace of mind as you put your capex money into exploiting the digital revolution for your own good.

Of course, the fact that the alternative involves unpleasant chapters like eleven and seven along with artwork like “going out of business” also tends to provide ample motivation.