Dave Morgan and Pete Sniderman will leave the independent production and distribution company at year’s end.
What does a dual channel TV future of both streaming and linear mean for the ad business? The implications are significant.
Media Measurement Market Fragmenting Just Like Media Consumption
Dave Morgan: “There was a time when the media measurement market was pretty simple. You had Audit Bureau of Circulation numbers for newspaper ad buys, BPA for magazines, Arbitron for radio and Nielsen for TV. No more. Digital disruption, the rise of performance advertising — and, most importantly, massive and accelerating audience fragmentation across an expanding number of media channels, suppliers and devices — are to blame.”
Simulmedia CEO Dave Morgan says TV advertising is broken, and the Internet’s primary influence on that problem will be to push the medium towards personalization with ads “tailored to us, rather than ‘carpet-bombed’ on a mass audience.” That said, he said TV ads remain far more important than digital-centric folks tend to believe, especially since 100 million U.S. households don’t have broadband at home and tens of millions don’t have internet there — too big a group to ignore.
The Internet Can’t Fix TV’s Reach Problem
TV advertising has a growing reach problem caused by accelerating audience fragmentation. Over the past 15 years, the average reach of national TV campaigns has dropped by 20% and individual spots by 80%, in spite of TV viewing being at an all time high. Apparently, there is a not-so-insignificant school of thought in the media industry that reach on TV doesn’t matter so much anymore. I disagree. Ad reach on TV matters now more than ever. Agencies, clients and networks alike should all care. Here are five good reasons why:
Today at Business Insider’s Ignition 2010, Dave Morgan made an uncommon claim for an Internet advertising veteran, particularly one who pioneered the kind of targeting everyone takes advantage of today. His claim: that TV ads, the blunt instrument of marketing and the $70 billion-pound gorilla of advertising, are “wildly underpriced.”
