Digital advertising is far too big for marketers to ignore. But whether or not the web can have the widespread reach of TV is still a matter for debate.
That’s a particularly pressing issue now, ahead of this spring’s “upfront” ad sales negotiations. Online giants like YouTube and Yahoo are ramping up digital offerings in hopes of luring a piece of ad budgets that typically flow to television.
In a note to investors last week, RBC Capital Markets analyst David Bank poured cold water on the idea that online video would draw much money from traditional television anytime soon, arguing “its all about reach.”
“Online video consumers tend to represent a very concentrated and somewhat limited subsection of consumers,” Mr. Bank said. “Advertisers will tend to reach the same small group of consumers time and time again, with the identical message.” Read More