While newspaper struggles are far from over, television appears poised for a turnaround next year. And this morning, a new sign that television will still be be a force in the marketplace for years to come.
According to the recent Magna Online Video Forecast, online video will continue to grow 36% this year. However, traditional video is still almost 100 times more popular than online video.
The Center for Media Research reports few large advertisers can achieve broad reaching objectives solely by using an online video-only campaign if there are any content preferences involved.
As a point of reference, during 2008 490 billion person-hours of traditional television were consumed according to Nielsen. This equates to 244 times more consumption of professional content video than of online video. Even assuming last year’s growth rate continues through 2012, traditional TV would still account for 98 times more consumption.
|2012 Traditional TV “Popularity” Vs. Online Video (Scenarios Assuming 4-Year Compounded Growth Rate of Online Video)|
|Growth Rate of Online Video Assumption||Relative Consumption of Professional Content Video (times as much)|
|Source: MAGNA. 2008 Growth Rate from Accustream, April 2009|
Over the next few years, says the report:
- TV content, and traditional TV suppliers, will continue to account for the bulk of online video budgets, but as user-generated content sites increasingly supply professional content to their mass audiences, these sites will produce faster rates of growth.
- Ad networks will continue to serve a valuable niche to the ecosystem, aggregating otherwise unsold (or undersold) inventory in an efficient manner, with cost-effective ways to reach large audiences
- Traditional print publishers will continue to hold valuable inventory, but few will produce significant volumes of content to capture much market share