RIP 30-Second Spot, Hello Web TV.

I have read and discussed the debate quite a bit over the past year about whether television will merge with the Web.  Some argue that the two platforms will never merge, as they provide two completely different experiences – TV is a passive experience and the Web is an active one.  I understand their argument, but I believe they are wrong.  The death of the 30 second spot metaphorically describes the change that is occurring, and supports my reason for believing that television will merge with the Web.

The 30 second spot is dying.  Increasing channels for distribution, an explosion of content, and changing viewer habits are partially to blame.  However, the real culprit is accountability.  Businesses need to measure their return, and no matter which way you cut it, television in its current form cannot compete with the Web.

The strength of the beloved 30 second spot was that it could be created once and used anywhere, saving businesses money.   Yet these cost savings that lead to the dominance of the 30 second spot are increasingly irrelevant as viewer habits change.  No longer is the 30 second spot sufficient across all platforms.   However, the death of the 30 second spot does not translate to the death of television.

The TV audience is growing steadily… just not on TV.  AccuStream iMedia Research found that professionally produced online video grew nearly 25% last year, accounting for 41.6 billion views.  What’s interesting is that around 17% of this content was originally produced for Television.  TV is not dying, it’s changing.

Ultimately, money follows viewers.  Yes, my 30 second spot can reach 100 million viewers during the Superbowl, but does this $3 million expense produce a return?  Accountability is forcing advertisers to rethink and reallocate their ad spending.  It is for this reason that television and web will merge.

The Television Bureau of Advertising’s 2009 estimates:

• Total spot TV ad revenue to fall 7% to 11%
• Local spot ad revenue to fall between 4% and 8%
• National spot ad revenue to fall between 11.5% and 15.5%

eMarketer expects online video ad spending to rise by 45% to $850 million in 2009.