For years, TV executives and industry analysts had scoffed at predictions of doom. But now, with declining ratings and ad revenues, they are in greater agreement that the internet based live and VOD services are slowly but surely eating traditional TV.
In new research, long-time media analyst Michael Nathanson of Moffett Nathanson Research wrote to investment clients that the growth of online ads are definitely coming at the expense of traditional TV and other media. He forecasts ad spending on TV will decrease by about 3 percent each year through 2020. And after several conversations with ad executives, Nathanson said he now predicts that by 2017, online advertising led by Google and Facebook, will surpass spending on TV ads. There is an increasing belief among advertisers that selling their messages on TV is a blunt instrument compared to the precision of online targeted ads.
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