Media buyers say while online video is growing, television is still the place to be for now.
This on the heels of a new Nielsen Media Research study on media usage debunking the myth that young people are abandoning television in favor of watching online video. The study found that 18-24- year-olds are watching only 5½ minutes of online video versus some 3½ hours of TV daily.
Interest is growing
The responses from media buyers suggest that digital pennies won't become dollars anytime soon given the recession, but they doubt the study will lessen marketers' interest in the new sector.
Steve Lanzano, chief operating officer of MPG, says that while he was a believer in the future of online video, “in a recession, we have to find the eyeballs as efficiently as possible and maybe that's not the place to go because the eyeballs aren't there yet.”
Andy Donchin, director of national broadcast at media buyer Carat, adds that “traditional media is still very strong and a great influencer. You need to get immersed in digital, but traditional media is still doing the heavy lifting.”
But many think the study will do little to dampen anyone's ardor for Internet video.
Ira Berger, director of national broadcasting at the Richards Group, says “a week from now, it will be like the survey never happened. It won't be a perception changer given that the amount of ink devoted to online video is far more than what's going on. The study won't change that because it [online video] is growing.”
Chris Allen, vice president of video innovation at Starcom USA, says the interest in online video is justified given the growth statistics.
“The idea of full episodes of TV shows online is only three years old. Online video viewing is growing in double digits. TV growth is a tiny fraction of that. Broadband penetration is still growing and new content is coming online, which will make it more compelling.”
He says some marketers are cutting back on digital video given the constraints of the recession, while other marketers are investing in learning about a new TV medium that is expected to grow rapidly.
Even so, Allen adds that marketers still want to see innovation where traditional TV is concerned.
“That's why we're looking for advanced metrics, targeting data beyond Nielsen and the ability to roll out addressable advertising.”