HDTV/3D TV News
Internet advertising will not generate enough revenue to counter the funding gap currently being experienced by TV broadcasters, a leading media specialist has warned.
In a new report published this week, Screen Digest said extra advertising generated from posting content online will not be enough to plug the $2 billion shortfall expected to hit US broadcasters over the next four years.
Currently half of all online TV is supported by major US broadcasters, including ABC, NBC, Fox, News Corp, Universal, and Disney.
However, online services account for just $448 million advertising revenue out of $69.5 billion total revenue generated from TV adverts in the US.
By 2013, online advertising revenue will triple to $1.45 billion, Screen Digest said, not enough to make up a $2 billion shortfall as revenue from traditional TV ads drops to $67 billion.
Report author Arash Amel said online video advertising is still in infant stage, and is not yet mature enough to fill the revenue gap created by the decline of traditional TV adverts.
“The challenge is to maximise the ad-supported online video business model, see how new forms of shortform and traditional longform content can drive growth, and explore more advanced methods of video advertising while there are still revenues from the traditional business to support the transition to multi-platform,” Amel said.
“In this regard, the next few years will be critical,” he added.
Amel believes that with better targeting and a broader advertising inventory, web TV services could match average per-viewer revenue of traditional TV within three years.
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