Television media buying moves closer to the online media buying model, according to this article posted on AdAge. This is going to cause a radical shake up with the Networks and smaller cable networks as well.
I don’t see people spending more time watching television. I don’t know how the very specialized/vertical channels are going to be able to support themselves without a premium paid to support the cost of production/broadcast of the programs. And, if you read the article mentioned above, the other major issue is caused by how many people will be skipping television commercials, so this will drive them from the “average viewership of commercials for a pod” (again, as mentioned in the article) to the performance-based cost model.
The “pay for performance” model works well for the web because you can place 3-10 ads on a given web page. And, if you’re Yahoo!, you have a lot of pageviews to work with because people are spending more and more time on the web. When television finally does migrate to a “pay for performance” model, it could really disrupt what we all take for granted right now…”free” programming.
Here’s what I think…advertising agencies are going to have to come up with much better creative and marketing strategies. They will have to figure out a way to make consumers WANT to watch television commercials/listen to radio commercials, etc.. It goes back to what we’ve been saying in the Interactive marketing space for some time, you must reach the right people with the right message at the right time in the right medium…relevance is king. Search marketing works very well because it reaches those who are seeking information on a given search. The relevancy of advertising to this audience is unmatched. It’s “perfect” marketing except that it does not have what television does…text ads are not sexy and do not touch upon the senses of sound and site.
The Utopia of marketing opportunities will happen when “television-like” advertising (podcasts?) are targeted very specifically to a given audience when they are in hunt mode (search?) and advertisers only pay when their ads are interacted with. The kinks are still being worked out but it’s happening now.