As young people are increasingly ignoring television, networks that target young audiences will have to change to stay relevant. As the attention of younger audience shifts to the Internet, advertisers that target the youth market are shifting their dollars to Internet media.

An announcement from MTV Networks reflects this trend. Video clips from MTV Networks will be distributed on the Web using Google Video, using an ad-supported model.

The deal will begin as a test later this month, offering 100 hours of programming from “Laguna Beach: The Real Orange County,” “SpongeBob SquarePants” and MTV’s Video Music Awards.

“Collaborating with Google gives us a terrific opportunity to take our content and distribute it even more widely on the Web in a seamless and targeted way,” said Tom Freston, president and chief executive of Viacom, MTV’s parent.

Google to distribute MTV clips with ads

According to a new McKinsey & Co. report, the power of television advertising is in decline, and by 2010, traditional TV advertising will be one-third as effective as it was in 1990.

McKinsey assumes a 15% decrease in buying power driving by cost-per-thousand rate increases; a 23% decline in ads viewed due to switching off; a 9% loss of attention to ads due to increased multitasking and a 37% decrease in message impact due to saturation.

“You’ve also got pronounced changes in consumer behavior while they’re consuming media,” said Tom French, director at McKinsey. “And ad spending is decreasingly reflecting consumer behavior.”

Real ad spending on prime-time broadcast TV has increased over last decade by about 40% even as viewers have dropped almost 50%. In other words, advertisers are paying more and getting less, which will make them turn to alternatives, such as Internet video.
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PodZinger has introduced a search that lets users search for spoken words within video podcasts.”The explosion of online video, fueled by the growing adoption of broadband technologies in the home and office, and offerings from media outlets such as MTV, VH1 and ABC, has heightened the need for an effective, user-friendly search engine to help users find their favorite topics,” said Alex Laats, president, PodZinger. (more…)