If you think that younger people watch less TV than they used to nowadays, you have to rethink; as they still watch a lot of it - but hoping on it right from the convenience of their smartphone. And why does it matter to advertisers, which spends the majority of their dollars on TV, even as they spend on Amazon, Facebook and Google Ads too?
The ads dollar sharing ratio — for every $51 ad dollars that's spent on TV has a corresponding $49 spent online — has led to serious leadership jostling amongst the large tech companies.
While Facebook generated over $26 billion in ad dollars last year and is currently growing that business at a rate of 49 percent this year, it still wants more.
It plans to spend about $1 billion to develop original shows that in most cases look a lot like those on TV.
The incursion towards professionally produced TV content also explains why Amazon beat out Google by agreeing to pay the NFL $50 million for the right to stream 10 Thursday night games.
Though, Amazon isn't hellbent on direct advertising like Google, but still advertising is among its fastest growing businesses, and retaining customers is a key part of offering enticing contents people like to watch.
Google on its part, plans to spend at least $200 million to produce 40 original shows for YouTube.
And as the original platform for online video, YouTube’s main focus has been user-generated contents, which may one day usurp the place of traditional TV, even as the industry is currently witnessing a disruption in terms of streaming subscriptions.
