In The End It Won’t Be the Plethora of Online Videos that Kill the Traditional Linear TV Industry

– It’ll Be TV’s Loss of Billions of Ad Revenue to Internet Sites such as Facebook, Google & Snapchat

By Charles Hall

It’s an upheaval like no other in the history of advertising. First the Internet took billions of eyeball hours away from TV channels. Now it’s taking billions of their advertising dollars, which had been their bread and butter. But what can TV channels do? The Internet is not only a better advertising vehicle than TV channels, it now has the breadth that advertisers want. Advertisers can both tightly target their audience, they can also advertise to billions of people worldwide. And the largest number of users on the Net will be using their mobile devices.

In 2017, which starts in two months, some 75% of Internet usage will happen on mobile devices such as smartphones and tablets, according the media buying agency Zenith, a division of the French ad agency Publicis Groupe, which had predicted it would be 71% in 2016. Zenith said 60% of global Internet advertising dollars – a total $134 billion – will come from mobile advertising in 2018 in its “Mobile Advertising Forecasts” report. The $134 billion spend in 2018 will be “more than will be spent on newspaper, magazine, cinema and outdoor advertising put together,” it said. It had predicted that global mobile advertising spend would be $71 billion in 2016.

As a result of more ad dollars going from TV to the Internet, it said, advertisers are rushing to Internet sites such as Facebook, Snapchat and Google so they can market directly to viewers.

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