Television has come a long way since its invention in the 19th and early 20th century. This powerful medium firmly established itself due to its use of combination of sight, motion, and sound. Apart from providing regular entertainment, television has grown into a powerful advertising platform that can influence consumer behaviour in a way that is unequalled by any known alternative. Although, the design and quality of the television as a product has gone through numerous transformations, everything else has remained pretty much the same for a long time.
A survey conducted in the year 2013 showed that 79% of households in the world owned a television set with the majority having acquired newer, energy efficient LED TVs. The new generation of televisions is already upon us and there seems to be no limit to the transformation that the technology can go through. The major question in all this especially given the advent of the internet and a host of devices has been whether all the movement pertaining to the design and workings of the television constitutes the last throes of technology. Will TV die and become the stuff of yesteryear stories? Let’s discuss.
Is Television in its Last Throes?
An analysis of the media shares occupied by various alternatives such as newspaper, cinema, internet, magazine, radio, and outdoor solutions in the Eastern European and Indian markets shows a distinct domination of television. This is characteristic of the global trend where television enjoys a market share well above 40% while other alternatives have mediocre statistics across different markets.
The Impact of the Internet
Of course, there is no denying the impact that the Internet is having on advertising. More and more people are getting connected to the internet and the platform is now playing an increasingly important role in shaping consumer decisions. While internet advertising constituted 8% of the global AD revenue, the figure is expected to leap to 16% in 2018. Television is expected to maintain its 40% share into the foreseeable future.
Digital advertisements are on a phenomenal rise and this has fed well into the new trend in television delivery via the cloud. Television is not capitulating but rather harnessing the power of the internet and digital Ad to create an even more potent platform that assures the enduring nature of television. Consumers are no longer restricted to cable and satellite television options but can now watch television online. This leverages the multitudes of devices that consumers now use to access content online while on the go.
Cloud services are also transforming the packaging and delivery of content through the provision of channel origination, regionalization, as well as Ad monetization services, products and platforms for television. This technology has brought down the costs associated with the provision of quality television programming services effectively bringing down the associated costs to the consumer. The technology is also allowing for geo-targeted advertising that is sensitive to the laws and cultures of the various demographics. Television networks are now able to provide programming to multiple geographies without the need to set up separate dedicated feeds. This provides a win-win scenario for broadcasters and advertisers alike.
Although the advertising revenue to be accrued by the television segment is expected to go through a slight dip by 2018, this rather insignificant decline is more than compensated for in real terms by the convergence of television, digital Ad, and internet revenues especially given services such as the cloud. Entities that fail to adapt to the changing environment and technology risk losing their competitive edge to those that are better able to embrace the future of television that is already upon us.
Television is here to stay. If anything, all the new technologies coming to the fore seem to be especially designed to perpetuate its relevance and dominance in the delivery of quality content and shaping of consumer buying behaviour. The future of television looks brighter and exciting than ever before.