eMarketer: TV Should Follow Video Viewing Habits

U.S. TV advertising spending will decline 4.2 percent to $66.9 billion in 2009, according to the latest projection by eMarketer.

Despite the fact that TV still has mass reach and broad appeal, its power is simply not what it used to be. Consumers are accessing content beyond their TV screens — with much of that consumption occurring online.

Even so, TV remains a dominant media for advertisers. eMarketer estimates $276.8 billion in total U.S. ad spending for 2008, and TV will garner 25 percent of those dollars — but growth is slowing.

Broadcasters must find ways to redefine their businesses in an increasingly digital world, eMarketer said. In many cases, that means online expansion and testing business models in that realm.

Early successes such as video-sharing site Hulu.com prove there is promise, but advertisers are not spending real money yet. As television and digital technologies converge further, the potential exists for enhanced engagement with viewers — and more advertising opportunities.