A media services company whose bread and butter is advertiser-supplied programming and media negotiation and billing has released a report poo-pooing the reach of Internet advertising and championing broadcast television as the medium of choice.
Media Post relays the information provided by Magna Global USA, whose efforts have supplied the backing for programs like Johnson & Johnson sponsored Door to Door and The Restaurant.
Magna’s research suggests that in 2010, 32 percent of the US population still will not have an Internet connection due the cost of connectivity:
“Despite falling prices for PCs, the potential for the Internet to become a true ‘mass’ medium remains limited by the lack of ubiquitous access,” stated the report.
“As a result, endemic advertisers, marketers with e-commerce activities, companies offering deep information to consumers, and those seeking niche audiences will continue to be the primary users of Internet advertising, rather than advertisers focused on mass marketing.”
The report goes on to predict the rise in importance of traditional media, such as broadcast television, as marketers seek to reach mass audiences. The report admits, though, free ad-supported municipal Wi-fi networks, like the one recently launched in San Francisco, could open up the market for Internet advertising.
Though it is interesting that a traditional advertising company releases a report about traditional advertising being the method of choice, Magna Global is probably correct in the short term.
But the days of traditional television broadcasting are numbered as the media world prepares to converge the Web and television through IPTV. Tech companies, too, are working on ways to make content searchable while creating lightweight and less expensive machines that connect to the Internet, but have no real PC function.
Server-based applications, where things one might traditionally perform on a clunky and expensive PC are accessed via the Net, are becoming a greater reality. If companies like Google are able in the future to add free or cheap Internet connectivity through wireless broadband, supported by advertising, its combination with on-demand high quality content, speed of delivery, cheap hardware, and connectivity will relegate traditional broadcast TV to a public access channel.
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