How Bad is the Demise of Linear TV

In response to Jack Myers recently column, I would agree that Broadcast TV is dying but respectfully disagree that this will have "dire consequences for both the industry and the broader economy." The history of media is change: small newspapers, radio, television, then the Internet, and it will go on. Advertisers and marketers have always had to weave through these upheavals.

Unmentioned in Jack's article is another driver of significant change: the increasing "commodization" of all products. Consumers needed brands fifty years ago. Today, as you look at the 40 kinds of toothpaste in the average supermarket aisle, no consumer is concerned about fraud, mislabeling or the like.

Of course, this has driven a deep split in the marketing world. Brands as badges [think fashion, some credit cards, some cars] need one kind of advertising. The more exclusive the brand, the less relevant television is.[my view]

Brands were once signifiers of "value" [think most grocery products, lower cost clothes, etc. Maybe everything in WalMart, which explains the rise of store brands, but that is another discussion]. The equation is cost/benefits. Since all the benefits seem virtually identical in this category, price is the relevant determinant of purchase.

And, if price is the driver, why not use direct response, or what passes for direct response in today's world.

The more interesting question to me is how this plays out.  Ben Thompson of Stratechery has written extensively about the power of live sports and other "watch in real time" events. Linear TV is clearly morphing, but consumers will always watch some programming, and I believe advertisers will always support that programming with dollars. But, as attention and time shift to online smartphones, etc., marketing executives will have to cope with a rapidly changing set of tools to reach potential buyers [and the need for an evolving set of messages] to be successful.

That is why the future is exciting. Many say a Chinese curse is to "live in interesting times." These are interesting times.

Posted at MediaVillage through the Thought Leadership self-publishing platform.

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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.

Robert Perkins

Founder of Sharp Arrow consulting. Former CMO of Pizza Hut, Head of World Wide Marketing and Licensing for Calvin Klein, Sr. VP at QVC and President of NY office of Chiat/Day. Started career in politics, was Head of Finance for Republican National Committee … read more