“There’s no more money left in news media advertising to take. So they must come after TV,” said Professor Ritson at the Inform News Media Summit in Sydney, as reported by B&T Magazine.
The adspend share of Facebook and Google in the Australian market has been a contentious point in recent years.
“At the turn of the century, approximately 70% of advertising budgets went to TV and news media; now they would account for less than 30%,” said Ritson, citing Morgan Stanley research which reveals how the internet has up-ended adspend in Australia over time.
The real battle for TV is in digitisation. Ritson pointed to the digitisation of the outdoor and radio advertising businesses, and noted that they weren’t so heavily impacted by the rise of Google and Facebook in the Australian market.
“The real battlefield for TV is starting to emerge. The last decade was about how the digital duopoly totally f*cked news media and took most, if not all, of their money…. The next decade is about a very different battle. Which make no mistake, the digital duopoly must win in order to grow, and grow they must,” he said.
“Will the traditional TV networks be able to defend their turf? Or will foreign interlopers take control of the most important portal in history: the TV,” he said.
“Can Seven, Nine and Ten digitalise quick enough to stop becoming redundant?”
Sourced from B&T; additional content by WARC staff