TV Advertising Leading Retailers Out of Recession

After taking a beating the for the last two years, traditional media companies, especially TV networks, appear to be leading the way out of the longest and most severe recession in 70 years. This according to a recent L.A. Times article.

TV networks like Fox, CBS, ABC, TNT, TBS, USA and Fox News – have benefited the most as retail advertisers snap up all available commercial spots and doing so by paying much higher rates than they did just five months ago.

Here’s how David Levy of Turner Networks sums it up:

“In challenging times, people go back to what they know, and what they know best is television.”

I think it goes a bit further than that. In tough economic times, retail advertisers can ill afford to speculate on what may work, so they gravitate to what they know works. 

Could be why many retailers are no longer as eager to buy Internet display ads as they were two or three years ago, when companies were steering million of ad dollars to online sites.

“There is still a big push toward digital and online video, but the Internet display advertising market is challenged,” said Greg Kahn, senior vice president of strategic in sights at Optimedia. “There is so much clutter in the space, and advertisers have begun to question the effectiveness of those online display ads.”

Really? Banner ads don’t work. Advertisers still prefer TV. Boy, don’t you just hate it when reality gets in the way of a good new media propaganda campaign?

Kinda like what those leaked emails have done for the global warming debate.


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