The report "2009 Advertising Forecast Update: Less TV, More Internet," found the majority of the decline was due to TV advertising, which dipped from $52 billion in 2008 to just $41 billion in 2009.

"The 2008-2009 recession drove down the value of everything-from home prices to TV advertising revenue," said Carl Howe, director at Yankee Group and author of the new report.

"As consumers have become worried about the economy, they’ve reduced the amount of time they spend on media to less than 12 hours a day, down from nearly 14 hours in 2008. This shift in behavior has caused ad revenues to drop significantly."

TV and video watching decreased a full hour per day. Consumers spent a total of 3 hours and 17 minutes watching TV, DVDs, videos and pre-recorded programs.

While time spent online decreased by 40 minutes pre day from 2008 to 2009, consumers still spent more time online, 4 hours and 13 minutes daily, more than any other medium. Another bright spot was Internet advertising revenue increased from $24 billion in 2008 to nearly $26 billion in 2009.

Mobile was the only category that saw an increase in time spent. Consumers spent 40 minutes per day talking on mobile phones in 2009, up from 12 percent from 2008. Mobile Internet use grew 36 percent, to 11 minutes a day, and texting grew 55 percent, to 27 minutes a day.

The report "2009 Advertising Forecast Update: Less TV, More Internet," found the majority of the decline was due to TV advertising, which dipped from $52 billion in 2008 to just $41 billion in 2009.

"The 2008-2009 recession drove down the value of everything-from home prices to TV advertising revenue," said Carl Howe, director at Yankee Group and author of the new report.

"As consumers have become worried about the economy, they’ve reduced the amount of time they spend on media to less than 12 hours a day, down from nearly 14 hours in 2008. This shift in behavior has caused ad revenues to drop significantly."

TV and video watching decreased a full hour per day. Consumers spent a total of 3 hours and 17 minutes watching TV, DVDs, videos and pre-recorded programs.

While time spent online decreased by 40 minutes pre day from 2008 to 2009, consumers still spent more time online, 4 hours and 13 minutes daily, more than any other medium. Another bright spot was Internet advertising revenue increased from $24 billion in 2008 to nearly $26 billion in 2009.

Mobile was the only category that saw an increase in time spent. Consumers spent 40 minutes per day talking on mobile phones in 2009, up from 12 percent from 2008. Mobile Internet use grew 36 percent, to 11 minutes a day, and texting grew 55 percent, to 27 minutes a day.

The report "2009 Advertising Forecast Update: Less TV, More Internet," found the majority of the decline was due to TV advertising, which dipped from $52 billion in 2008 to just $41 billion in 2009.

"The 2008-2009 recession drove down the value of everything-from home prices to TV advertising revenue," said Carl Howe, director at Yankee Group and author of the new report.

"As consumers have become worried about the economy, they’ve reduced the amount of time they spend on media to less than 12 hours a day, down from nearly 14 hours in 2008. This shift in behavior has caused ad revenues to drop significantly."

TV and video watching decreased a full hour per day. Consumers spent a total of 3 hours and 17 minutes watching TV, DVDs, videos and pre-recorded programs.

While time spent online decreased by 40 minutes pre day from 2008 to 2009, consumers still spent more time online, 4 hours and 13 minutes daily, more than any other medium. Another bright spot was Internet advertising revenue increased from $24 billion in 2008 to nearly $26 billion in 2009.

Mobile was the only category that saw an increase in time spent. Consumers spent 40 minutes per day talking on mobile phones in 2009, up from 12 percent from 2008. Mobile Internet use grew 36 percent, to 11 minutes a day, and texting grew 55 percent, to 27 minutes a day.

The report "2009 Advertising Forecast Update: Less TV, More Internet," found the majority of the decline was due to TV advertising, which dipped from $52 billion in 2008 to just $41 billion in 2009.

"The 2008-2009 recession drove down the value of everything-from home prices to TV advertising revenue," said Carl Howe, director at Yankee Group and author of the new report.

"As consumers have become worried about the economy, they’ve reduced the amount of time they spend on media to less than 12 hours a day, down from nearly 14 hours in 2008. This shift in behavior has caused ad revenues to drop significantly."

TV and video watching decreased a full hour per day. Consumers spent a total of 3 hours and 17 minutes watching TV, DVDs, videos and pre-recorded programs.

While time spent online decreased by 40 minutes pre day from 2008 to 2009, consumers still spent more time online, 4 hours and 13 minutes daily, more than any other medium. Another bright spot was Internet advertising revenue increased from $24 billion in 2008 to nearly $26 billion in 2009.

Mobile was the only category that saw an increase in time spent. Consumers spent 40 minutes per day talking on mobile phones in 2009, up from 12 percent from 2008. Mobile Internet use grew 36 percent, to 11 minutes a day, and texting grew 55 percent, to 27 minutes a day.

The report found that most mobile sites still fail to offer satisfactory experiences, earning an average score of 52 on a scale of 1 to 100.

Carl Howe
Director
Yankee Group

"Unlike last year, most of the sites we reviewed adapt their content to many differing feature phones and smartphones," said Carl Howe, director at Yankee Group and author of the report.

"And some companies are also starting to incorporate location-awareness, something other sites should strive to emulate."

For news, Google and Yahoo performed the best. Both companies earned a score of 73, with a solid balance in offering enough information to mobile users without   overwhelming them. Other sites are still struggling with leveraging mobile context and site discoverability.

For sports, MLB.com came out on top. Major League Baseball scored a 71 for its device detection and ability to tailor content to fit mobile screens. Yahoo’s Rivals.com (58) and ESPN (57) were a close second and third.

For search, Google led, edging out Yahoo. Google’s mobile search site, with its basic interface, format specific device detection and location-awareness, scored an 81, the highest number given to any mobile Web site so far.  Yahoo scored a 76, hindered by irrelevant content and HTML validation errors.

The report found all mobile carriers need to improve. Sprint’s site was found to be slightly out of date, but it does help mobile users find Sprint stores and the carrier, it received a score of 53. Other national carrier sites still ignore mobile web users who are not their customers, forcing consumers to view information on their desktops.

The Internet makes up about 20 percent pf overall media consumption in the U.S., but advertisers currently invest only 7.5 percent of their budget online. There is considerable potential for marketplace growth as advertisers bridge this gap. By 2011, close to 25 percent of all media consumption will be online, bringing in 15 percent of the advertising dollars.

The factors leading to continued growth are increased online audiences, the creation of new types of advertising and the development of new publisher business models that help sell interactive advertising.  The report points out that even with large online audiences and growing Internet media consumption, advertisers online budgets continue to lag compared to traditional media.

"With internet connectivity nearly ubiquitous, online advertising growth is inevitable," said report author Daniel Taylor, senior analyst at Yankee Group.

"And yet the Internet is still a relatively new digital medium. Steady growth in online advertising will require publishers to invest extensively in new media and advertising product development."
 

"No industry has felt the impact of the anywhere consumer more strongly than the recording industry," said Michael Goodman, director of digital entertainment at Yankee Group.

"It’s not just that the record labels are facing declining revenue; rather, the basic relationship between recording artists, record labels and consumers is in major flux. As bands retain ownership of their music, the record label’s role shrinks while the role of technology vendors and online music stores grow."

The Yankee Group predicts that in the U.S. online music will grow faster than mobile music downloads and online single downloads will outpace album downloads or subscriptions. Despite mobile carriers efforts, online distribution will continue to dominate the category, making up 80 percent of the industry revenue. The market for music phones will grow to more than 266 million, only 9 percent of mobile users will actively use them as portable music players the firm says.