Ad Agencies Chart More Investment in Online Video, Less In TV

Two big ad agencies holding court at a Streaming Media East panel in New York City this week – Zenith Media and Aegis Media – both commented on a trend amongst their brand advertising clients to channel advertising dollars away from broadcast TV ads and towards online video campaigns. Citing an “erosion of audiences for TV” and a “falling audience for broadcast,” clients such as Gillette, General Mills and Nestle are doing more with Internet video to capture and keep the attention of customers and potential customers.

This hardly seems unfathomable. Given the same phenomena in the world of print journalism, where the once-mighty newspaper medium has had to scamble to remain relevant amidst decreasing circulations and the accompanying decrease in print ad revenues, it’s just logical that younger consumers would gravitate towards Internet-based video viewing as they have with online journalism consumption.

What’s the message here? Simply, as loyalty to traditional television as an entertainment and information source decays with time and new technologies, companies will need to spend more of their money reaching potential customers where they can now be found – on the Internet. Video portals like YouTube offer free advertising by simply uploading your videos – a far-cheaper route than the astronomical fees associated with broadcast TV commercials. And since Google owns YouTube and indexes new video uploads continuously, video content there has the best chance of showing up in Google’s search results.

You can read the entire ClickZ article on ad-spend migration towards online video here. After that, you’ll want to contact Fathom to learn more about what we can do for your business through the persuasive power and reach of affordable Internet video for today’s Web-viewing world.  Feel free to check-out our growing portfolio of online video samples too. We think you’ll like what you see.

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