The major networks including NBC, CBS, and ABC are confident about television ad revenues despite the bad economy. Current profits justify the optimism.
But I don’t think TV revenues are up because TV advertising necessarily works. TV revenues are up for three reasons:
- Because Internet television is still in its infancy. Hulu can’t sell enough ads quickly enough.
- Because advertisers feel like they KNOW TV, getting awareness and proven measures for money well spent.
- Because advertisers are used to it. The thought goes why spend money on print media with less circulation and Internet media which is pricey and still unproven.
TV works because advertisers know how to do it and can see the awareness impact on sales. Nothing is a mirage. But TV on the Internet analytics will improve and online TV spending with grow with it. It has to. We live in an attention economy where computer screens and mobile phones reign.