Broadcasters spend more on technology as TV ads buck online trend

More than half of broadcasters plan to invest in technology this year, as TV advertising sales buck the trend towards online models, according to a survey from Ovum.

More than half of broadcasters plan to invest in technology this year, as TV advertising sales buck the trend towards online models, according to a survey from Ovum.

Due to this buoyant mood in the market, around 20% of senior broadcast IT executives said they plan to increase their IT technology spend by more than 6% in 2011, while 17% said they would increase budgets by the same amount in 2012.

Adrian Drury, principal analyst at Ovum, said: "We're definitely going to see more social media integration such as Twitter feeds at the bottom of TV screens. Commercially, that will also mean they'll have more information about users and do analysis against to create more opportunities for advertisers," he added.

The top strategic technology investment areas are a reduction in operational costs through a shift to file-based workflow and automation; the launch of new high-definition (HD) channels; and an investment in social media platforms, says Drury.

Broadcast media markets are the least affected area by the online advertising transition trend. "This has certainly provided the industry with confidence that TV advertising has some resilience, compared to print. The transition to web video on demand is still a long way off, the general view is that this is unlikely to change before 2014/15," he added.

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