Sunday, June 4, 2017

First Cut

US advertisers last year spent 21 cents of every ad dollar targeting radio and print audiences; 38 targeting cable TV viewers; and 41 targeting mobile phone users, according to Kleiner Perkins.

No surprise here.

Americans over 65 still love their cable TV. In fact, they devote 58% of their waking hours to it, says the
US Bureau of Labor Statistics.

But Americans under 65 don't—and they're cutting the cable for the ad-free TV streamed by Netflix and its competitors.

Where ads once enriched many companies, only two—Google and Facebook—are reaping cable cutting's windfall.

And it's Netflix's fault, media reporter
Derek Thompson says.

Netflix launched subscription-based TV, robbing large screens of viewers—and advertisers of prospects. As a result, advertisers are targeting viewers under 65 on their phones, where Facebook and Google have a duopoly.

"If the dynamic tech duo could go back in time and design the perfect ally to push advertising from TV to mobile phones," Thompson says, "it would look exactly like Netflix."

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