The trade group’s CEO says that Internet video accounts for only 1.5% of total viewing and adds that with Americans watching television an average of 297 minutes a day (and spending an average 13 minutes on Facebook), “it’s television that makes the [advertisers’] cash register ring.”
You may have heard that consumers are getting their video online, skipping commercials with DVRs and generally leaving broadcast television behind. But Steve Lanzano, president-CEO of TVB Local Marketing Solutions, told today’s SNL Kagan TV and Radio Finance Summit in New York those are among the misconceptions that broadcasters need to address so advertisers understand what is really going on.
Internet video may be a hot topic, but Lanzano cited data that it accounts for only 1.5% of total viewing. And the figure for watching on a mobile device is only 0.4%. So while advertisers may be hearing anecdotal stories of individuals moving away from television, the reality is a different story.
“Again, looking at the facts, 91% of the people watch TV live. Seven percent time-shift,” Lanzano said to make his point that Americans still watch TV more than any other type of screen and watch it mostly in real time.
As for the latest hot competitor to traditional media, Lanzano cited statistics that people spend an average of 13 minutes a day on Facebook, compared to 297 minutes watching television. “No wonder our friends at GM are making some changes,” he said.
“I never said that you shouldn’t use this or it doesn’t have a role,” Lanzano said of the social media outlets, “but remember, it’s television that makes the cash register ring.”
The TVB CEO said television is recovering from the national recession and regaining pricing power. And he insisted that buying national spot TV is especially attractive for advertisers in the current environment.
“The bottom line is you can buy all 201 DMAs cheaper — that’s right, cheaper — than buying network broadcast scatter,” Lanzano told the NYC audience.
Not that there is nothing for broadcasters to worry about. When asked about Dish Network’s Ad Hopper, for which subscribers can pay an extra $10 per month for spot-skipping technology, the TVB executive said “I believe it is a threat,” but also noted that DVRs didn’t kill commercials as some had predicted.
“I’d like to ask [Dish founder, Chairman and former CEO] Charlie Ergen who’s going to pay for all of the content if everybody hops the commercials,” Lonzano said.
“Here’s the bottom line,” he added, “without our content Charlie Ergen doesn’t exist.”