Dive summary:
- Contrary to what one might expect, the low ratings and rising advertising costs of may actually be hurting revenues for online video.
- The reason behind this phenomenon is that clients and brands only have so many ad dollars in their budget and are reluctant to pull dollars away from their TV budgets; with rising costs of TV ads, it leaves less room for alternative ads like online video.
- The spending shift to web video will likely increase only in gradual and incremental spending shifts.
From the article:
"We are seeing more brands that are channel agnostic," said Shlachter. "But we still have retail clients who say, 'Our sales go up when we spend on TV.' That’s hard to argue with."