The YouTube Effect
Wired writes that TV advertising is broken, putting $67 billion up for grabs.
The digital revolution is equally terrifying to Madison Avenue, which has been footing the bill for Gilligan’s Island, The New Republic, The Family Circus, Rush Limbaugh, TRL, and The Wall Street Journal forever. Until now, advertisers have underwritten mass media to reach mass audiences. Indeed, they’ve paid increasing premiums for the opportunity as audiences have shrunk, because even in a fragmented media world, the largest fragment network TV is the most valuable. But now they realize that they are losing not only mass but critical mass.
They see the old model collapsing before them, and they have $67 billion to spend and no idea where to spend it. Because, at least until recently, the Internet has lacked both the riveting content and ad space inventory to absorb it. But what if there were a means to approximate the reach and mesmerizing power of television online? What if there were a medium with not only the grip of TV but the vast scale to absorb all those ad dollars? And what if, as a bonus, the medium were able not merely to command eyeballs for marketers but to target content especially relevant to what the marketer is selling?