We watch a conveyor belt of passing numbers, moving faster and faster. A few stand out and capture our imagination.
The passing of print advertising in the U.S. has caught everyone’s attention in the last month (though we saw that passage in the U.K. two years ago). The gap between print ad loss and digital ad gain — 7-or-8 to 1, depending on your source — has been another attention grabber. Or this amazement, from mid-2011: While news sites struggle to average more than 10 or 15 minutes of usage a month, Facebook counts six hours a month, globally. Six hours. That’s engagement.
So we’ve seen The Guardian, The Washington Post, NPR, and The Wall Street Journal embed their flags in the fertile Facebook soil, planting new colonies and seeing a heavy immigration of digital natives (“With WSJ Social, the Wall Street Journal is Rethinking Distribution”).
Six hours is impressive, and it’s a number digital ad pioneer Dave Morgan now uses a lot. The still boyish Internet genius has graduated from the web, migrating back in time to an older medium with which we all grew up. Hint: It’s not newspapers.
“Six hours a month is good,” he says in his New York startup office. “Six hours a day is better.” Only one medium has that kind of pull: TV.
Indeed, time spent on TV clocks at almost 33 hours a week, according to the latest Nielsen study — maybe not consistently six hours a day (though it may hit that on some days), but almost five on average.
That’s why TV advertising is still way ahead of digital, pulling in $60.7 billion in 2011 and estimated to grow to $72 billion by 2016. In addition, time spent watching TV matches the ad dollars spent on the medium: TV takes up 42.5 percent of people’s media time and collects 42.2 percent of national ad spending. Newspapers and magazines still have more print losses to which to look forward, given their time-spent-vs.-ad-spend mismatches (“The newsonomics of crossover”).
It’s enough to force us to revive that old Clintonian 1992 campaign strategy, hitting the pause button and thinking about the newsonomics of TV, stupid.......
...
The newsonomics of targeted TV
Television is about to be disrupted
by the same fragmentation print has faced: the ability to better target
advertising, but only if you have the right data.
The passing of print advertising in the U.S. has caught everyone’s attention in the last month (though we saw that passage in the U.K. two years ago). The gap between print ad loss and digital ad gain — 7-or-8 to 1, depending on your source — has been another attention grabber. Or this amazement, from mid-2011: While news sites struggle to average more than 10 or 15 minutes of usage a month, Facebook counts six hours a month, globally. Six hours. That’s engagement.
So we’ve seen The Guardian, The Washington Post, NPR, and The Wall Street Journal embed their flags in the fertile Facebook soil, planting new colonies and seeing a heavy immigration of digital natives (“With WSJ Social, the Wall Street Journal is Rethinking Distribution”).
Six hours is impressive, and it’s a number digital ad pioneer Dave Morgan now uses a lot. The still boyish Internet genius has graduated from the web, migrating back in time to an older medium with which we all grew up. Hint: It’s not newspapers.
“Six hours a month is good,” he says in his New York startup office. “Six hours a day is better.” Only one medium has that kind of pull: TV.
Indeed, time spent on TV clocks at almost 33 hours a week, according to the latest Nielsen study — maybe not consistently six hours a day (though it may hit that on some days), but almost five on average.
That’s why TV advertising is still way ahead of digital, pulling in $60.7 billion in 2011 and estimated to grow to $72 billion by 2016. In addition, time spent watching TV matches the ad dollars spent on the medium: TV takes up 42.5 percent of people’s media time and collects 42.2 percent of national ad spending. Newspapers and magazines still have more print losses to which to look forward, given their time-spent-vs.-ad-spend mismatches (“The newsonomics of crossover”).
It’s enough to force us to revive that old Clintonian 1992 campaign strategy, hitting the pause button and thinking about the newsonomics of TV, stupid.
While Morgan, the entrepreneur behind digital ad companies Real Media (sold as part of 24/7 Real Media to WPP for $649 million in 2007) and Tacoda (sold to AOL for $275 million in 2007), may be focused on that glowing living-room flatscreen, that doesn’t mean he’s forgotten his roots: targeting audiences with more effective ads.
That’s what his 37-person, NYC-based start-up Simulmedia does: Bringing contemporary ad targeting to an industry more used to selling share and ratings points. To do that, it is assembling “the largest database of TV watching.” That’s a tall order, with 500,000 different national ads out there at any point.
The Simulmedia story begins with data — lots of it — and will end there too. How much? An almost terrifying number: Simulmedia takes in “150 million events per day” and retains the data indefinitely. It now houses 50 terabytes of data.
Simulmedia can capture what channels are being watched, when channels are being changed, and “when people change channels in the middle of ads.” It gets aggregated customer data from seven of the eight major cable systems operators (CSOs) in the U.S, with the exception of Time Warner...
http://www.niemanlab.org/2012/03/the-newsonomics-of-targeted-tv/?utm_source=Daily+Lab+email+list&utm_medium=email&utm_campaign=79fccb2c28-DAILY_EMAIL
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