Digital Advertising Is Bigger Than TV? Not Really
In the midst of an impressive tour of the digital landscape, Business Insider CEO Henry Blodget had a bombshell of a chart, headlined “Digital is now bigger than TV.”
Wow. This would be an epochal change, only it’s not really true. TV ad spending, at least going by measurements of over 10 different sources, remains far larger than Internet ad spending, in the U.S and the world. Here’s a roundup of sources from eMarketer. A rep there said “not even close” to the notion of digital overtaking TV.
So what gives? Blodget told me via Twitter that the chart is based on “real numbers” gleaned from the filings of “the 20 biggest public media/tech companies.” For TV dollars, Blodget relied on the financial filings of Time Warner, Viacom, Disney, News Corp, CBS; for digital, Google, Yahoo, AOL, Microsoft and Facebook
The problem would appear to be that he’s underestimated the size of the TV market. The eMarketer consensus is $66.3 billion, but Blodget’s chart appears about half that. One ad spending researcher noted to me that the TV ad market is more than just national broadcast. It’s also cable, spot and local cable. Blodget said the results, although billed as “U.S. advertising revenues, are indicative of the sample only. So basically “digital is now bigger than TV” for a group of the market that’s not indicative of the overall market.
Someday of course digital ad spending will overtake TV. Of course that day won’t be anytime soon, and by the time it does, the worlds of “digital” and “TV” will have blurred so much as to be hard to disentangle.
In the meantime, Blodget’s 134-slide presentation is worth checking out — it already has a whopping 900,000 views — although take the hyperbole about digital overtaking TV with a grain of salt.
Image via Shutterstock
MediaMath and Viant are in talks to join forces
Potential outcomes include one of ad tech's most storied names debuting on the public markets via a buyout.
As AI spreads across the marketing landscape, data’s role will be key to success or danger
There’s a growing awareness of the risks inherent in AI's ultra-powerful potential, but whether enough steps are being taken to mitigate them remains a huge question mark.
Spotify cancels six true crime podcasts amid layoffs, Gimlet-Parcast merger
Spotify is canceling six shows and laying off 200 people as it merges its Gimlet and Parcast units to push its podcast business towards profitability.
SponsoredWhat the measurement and currency discussion really means to TV advertisers
Ali Mack, head of TV and agency, Experian Major streaming video providers have recently made headlines by adopting new currencies for ad measurement, threatening Nielsen’s long-standing TV ratings monopoly. NBCUniversal, for example, has certified iSpot and VideoAmp as currencies for advanced audiences and formed the Joint Industry Committee with Paramount, TelevisaUnivision and Warner Bros. Discovery. […]
The Brazilian Report, Paramount Brand Studio, New York Times Advertising and The Wall Street Journal are among the 2023 Digiday Media Awards finalists
Personalization, authenticity and inclusivity emerged as significant themes among this year’s Digiday Media Awards shortlist. With the expansion of digital media’s global reach and influence, brands are recognizing the importance of investing in emerging channels to engage diverse communities. The Brazilian Report was shortlisted for several categories, including Best Podcast for its weekly series, ‘Explaining […]
‘Not the future’: European publishers remain steadfast in blocking alternative IDs to third-party cookies
Some European publishers believe alternatives to the third-party cookies, probabilistic or deterministic, will do more harm than good to their ads businesses.