RSS

•Facebook Is Quietly Implementing A Plan To Destroy Television

10 Dec

Put this altogether — along with the notion that Facebook is bigger than the Super  Bowl, TV’s ne plus ultra of audiences — and it appears that  Facebook sees TV’s old media dollars as ripe for the picking.

Lucy Jacobs

Lucy Jacobs / Spruce Media

Spruce COO Lucy Jacobs

“Facebook is 100 percent  primed to take down those TV budgets,” according to Lucy Jacobs, COO of Spruce  Media, which handles about $150 million in Facebook ad buying annually, from  advertisers like Samsung  and P&G. The Nielsen aspect allows Facebook campaigns to be measured with  “gross ratings points,” which are a measure of the reach and frequency of a  campaign as a seen by the target consumers. “They are building a case for moving  TV dollars to Facebook as they help brands quantify how Facebook reach and  frequency maps to GRP’s,” Jacobs tells us.
Read more:  http://www.businessinsider.com/facebook-is-quietly-implementing-a-plan-to-destroy-television-2012-12#ixzz2EfIsz3U2

She notes, of course, that this is not going to happen overnight. It’s still  really “easy” for advertisers to continue buying TV: The infrastructure and the  habits have been in place for years and will not easily be dismantled.

But it could happen, if Facebook gets its way.

Likewise, Rob Leathern, CEO of Optimal, a social media analytics company,  says “I think they’d love that to happen.” Again, like Jacobs, he’s careful to  note that the shift of dollars from TV to Facebook would be a long-term event.  But, he says, “They’re definitely going to be doing more video stuff next year.  … there’s a lot of evidence to suggest that’s gonna be shifting and allowing  people to do more interruptive advertising, rather than just the [display ads]  on the right hand side. Obviously, TV is the original interruptive medium.”

 

rob leathern optimal

Rob Leather / Twitter

Facebook has no choice: It  needs video to prosper.

Facebook is actually under some pressure to build a big, robust video  offering to fend  off international competition. In Russia,  Facebook has only 7 million members. The big domestic social network there  is VKontakte, which is a rip-off of Facebook. It has 40 million members.

Read more:  http://www.businessinsider.com/facebook-is-quietly-implementing-a-plan-to-destroy-television-2012-12#ixzz2EfIg1RLUThe reason it’s popular is because it allows the free streaming of pirated  movies. Many, many Russians spend their evenings logging in to a watch a movie  (illegally) — free of charge.

Of course, Facebook, can’t offer illegally copied movies. But it can do what  Google’s YouTube has done — offer a huge amount of rights-managed video for  free. Online video  watching is already eating into TV ratings and ad dollars.

This is where it gets really interesting: The main difference between  Facebook video and YouTube is that Facebook’s audience is logged-in while it  watches, and Facebook can let advertisers target viewers using all its available data  on each user. On YouTube, by contrast, a huge chunk of the audience watches  anonymously because you do not need to sign-in to see the content.

Facebook video is, therefore, the kind of dream situation that the television business  can never hope to match. The only question is, can CEO Mark  Zuckerberg build it?

Disclosure: The author owns Facebook stock.

Read more:  http://www.businessinsider.com/facebook-is-quietly-implementing-a-plan-to-destroy-television-2012-12#ixzz2EfIXJQrA

Advertisements
 
2 Comments

Posted by on December 10, 2012 in Uncategorized

 

2 responses to “•Facebook Is Quietly Implementing A Plan To Destroy Television

  1. maverick41

    December 13, 2012 at 11:16 pm

    The reality of this article is inevitable. I feel it is only a matter of time before social media takes over. The money is there to give large corporations what they want and the users are there to keep giving people a reason to poor money into social media. I personally think that social media will not take over television for quite some time, possibly 10-20 years (in my opinion). However, that is not very much time considering how large scale of a switch this would be. Social media has become a way of life in today’s society, some may choose to avoid it altogether or just not participate however the amount of users vastly outnumbers them. I would not be surprised to see video technology or applications in the near future. It will certainly be the beginning of a new age in technology and social media.

     
  2. baconftwlolz

    December 14, 2012 at 12:53 am

    This article was rather interesting to be honest. In my opinion I would hate to see a world where one company, in this case Facebook, controls television and how that sort of medium is released. It almost does seem inevitable though in that Facebook is poised to do pretty much whatever it wants with its massive member base and loads if money. With mainly the Baby Boomer generation being the consumers of television and the millennials and later generations coming into money you will see advertisements move to Facebook and online due to the younger generation’s voracious appetite for it.

     

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: