Although newspapers are suffering in the throws of the current economic downturn and book publishers are wondering where all the readers are, television is still recording record viewers according to the Nielsen Media Research Company. Even in this age of instant access to millions of videos on the internet, television is still the one old media business with outstanding resilience.
Video and other media have tipped the scale in the war between newspapers and television. Since broadcast TV first appeared, there has been an ongoing battle between the broadcasters and the newspapers. Now newspapers are losing readers at an accelerated rate, consumers are avoiding books too. People are clearly showing a preference for video and instant access media programs.
In December, almost one hundred million viewers in the United States viewed 5.9 billion YouTube videos. These numbers reinforce the fact that video is on the rise and the old media formats like newspapers and books are failing. Even with the amazing potential of interactive digital advertising, advertisers are still sold on television where they are able to get access to a larger audience in one fell swoop.
According to a recent New York Times article, Americans are so enamored with video that thirty-one percent of Internet use occurs while in front of a television. We are also beginning to watch more video on our phones; over one-hundred million cellular phones are video-capable. The typical American family watched 142 hours of television monthly. Internet users average about twenty-seven hours monthly.
In the advertising industry there is much talk about “three screen” advertising. Television, the Internet, and mobile devices are sure-fire ways for advertisers to blanket the highest possible market for the products they are selling. However, even television is not totally recession proof. For example, the Walt Disney Company reported earnings last week that were among the worst in the company’s history. The news was not good for ABC either, who reported poor earnings due to a lack in advertising.
The recession hasn’t seemed to hurt most Internet companies though; Google reported a thirty-one percent rise in revenues from last year. Google’s search related advertising netted the company $21.8 billion in 2008. Advertisers seem to follow the viewers where ever they go, online or offline. Some advertisers are still sticking with television and choosing not to sell their wares on the web. This is due to the fact that many feel that with the vast array of sights on the internet, their ads will be like a needle in a haystack.