Amid Media Upheavals, Television Holds Sway

For television as an advertising medium, these seem like troubled times: declining ratings for many shows, increasing use of DVRs, difficulties in reaching prized younger viewers, fragmentation of audiences, the growing appeal of digital media and even a service being introduced by Dish Network, Auto Hop, enabling customers to more easily skip commercials. Why, then, are television executives smiling as they prepare for their annual “upfront” week of presentations to advertisers, which begins in New York on Monday?

Because Madison Avenue, even if it can’t always get what it wants from television anymore, still believes it gets most of what it needs. “Advertisers use television because they need to make everyone aware of the differences in brand attributes” between their products and those sold by competitors, said Brian Wieser, an analyst with the Pivotal Research Group who was once the top advertising forecaster for the Interpublic Group of Companies. “And as long as TV is viewed as the primary driver of brand awareness, TV will grow its revenue base.”