Field Notes Inside an Integrated Communications Agency

Let the countdown begin! Although many of us already see antennas and "rabbit ears" as extinct, in 362 days (as of today) this will hold true. On February 18, 2009 the DTV transition (digital TV) will occur, switching from analog to digital broadcast television. 

So what does this mean to you?  All-digital broadcasting will not only improve picture and sound quality, it will offer "multicasting."  This will allow broadcast stations to offer several channels of digital programming at the same time, while as with analog, they could only offer one. This means even more fragmentation for media buyers (ugh). The transition to digital will also open up airwaves for public safety and emergency communications like police and fire departments.

After the 17th, anyone who has an analog set and relies on an over-the-air signal will need to make a switch.  According to Nielson Media Research, 13 million households have television sets that can only receive analog broadcasts and are currently unprepared for the transition. 

You do not however need to ditch your old television, just get a digital to analog converter box. They sell from $40-$70. The government has issued a coupon program that just became available, worth $40 towards a converter box.

So this is great right? I get way more programs to choose from, no more "rabbit ears", and the government is going to give me a coupon to cover the cost of a converter box! 

Sounds simple, however this is a really profound and expensive change to this medium. This is likely to impact the economy in a big way. The National Association of Broadcasters announced plans for a $697 million dollar campaign to educate consumers about the digital broadcast transition. 

Will millions of people run out to Best Buy to upgrade their TV's? And if so, what are they going to do with their old TV sets?  As I was writing this post thinking through the possible implications this change will have, a new article popped up from my Google Reader about how much e-waste this change may potentially create.

Even with the efforts to educate and prepare the public for the conversion, this will most likely affect the elderly and low-income population the greatest. These households will be unable to afford cable or satellite, and may also have a difficult time purchasing the more expensive converter boxes.

For many advertisers and media buyers, this could result in a shift in media dollars. Ratings may drop in these areas, and we may see broadcast dollars targeting low-income households move to other mediums such as direct mail. 

The outcome of this conversion is still unknown, however February 09' will creep up fast! Will you be ready?

With the constant articles and talk of DVR’s and video online, the question remains.  Are consumers seeing my ads?  
 
Television reps are quick to point out the impact Satellite Radio is having on local radio formats.  My response is always the same. “How is that different from the effects of DVR’s?” I’m always surprised at their reaction – as if they didn’t expect me to ask.
 
Networks are expanding their viewership by offering full episodes online.  How is this affecting their share on TV? Isn’t it safe to assume that people are just watching more TV?
 
No matter how you slice it, people still love TV. While primetime has always been ‘appointment television’, and still very much is - viewers now have the flexibility to watch what they want and when they want.   Buyers are understanding that consumers are getting their TV ‘fix’ from many angles.  We need to also understand that it is equally important reach them from just as many angles.
 
A banner ad online may not offer the same emotional affect that a 30 second television spot does, but it offers interaction with the viewer.  The viewer may be more engaged while watching an episode of Heroes online, than he would have been by watching it at its regular time on TV.
 
People are still watching TV and online video exposure is only going to continue to grow.  I don’t think that the segmentation of consumer behavior should be thought as a negative hurdle for buyers. If anything, it gives us more ways to reach them. Referencing article form Joe Mandese at Mediapost.