However, the numbers don’t necessarily break down as you might expect: While naturally the digitally-savvy youth demographic, particularly males 18-to-24, make up the bulk of viewers, a whopping third of all 55-to-64 year olds are also tuning in on their computers instead of their television sets.

Perhaps even more notable is that these viewers aren’t always watching their favorite full-length network television shows. In fact, 80% of the most-popular video genres are short form. This may mean that network execs don’t have to worry about the uptick in online viewing as much as they once thought; though numbers of online viewers are indeed increasing, they’re not watching what advertisers thought they were watching.

Shorter-length videos can be equally compelling. More than a third of short-form video viewers said they thought the short form was equally or more entertaining than full-length shows. Here’s the kicker: they said the short form was equally or more entertaining than full-length shows on their televisions.

Network execs used to be concerned that their television viewers were watching the same shows online, thus losing advertising dollars from television ad buyers. Perhaps instead they ought to be concerned those short-form videos, and their accompanying ads, might actually be getting a bigger audience than the long-form shows they invest millions in.

Cable networks are frantically trying to find a solution to consumer’s increasing expectation of instant, play-anywhere shows – without losing the precious fees that they get from cable subscribers.

If you can get cable for free online, why would you pay for cable on your TV?

Malone has some ideas. And he might just be the man to do it, considering he’s also the guy who came up with the concept of paying for television in the first place.

After all, there are still plenty of channels that are available for free, and yet thousands of people across the U.S. pay a monthly bill for extra channels. That concept was completely foreign when Malone first showed up on the scene – but he sold them with the idea of better content being available on cable TV. You want a better product, you pay a better price.

So what to do about getting consumers to pay for cable TV now that it seems shows are heading right back into free-for-all territory? Malone thinks the key might be in how consumers get to view their videos, which is to say through the Internet connection itself.

Online video is only worth viewing if you have a fast enough connection to keep it from freezing every five seconds – which may be where the money starts to be spent and earned. The other idea is pay-per-view, or a subscription, perhaps using Hulu as an aggregate.

If Malone can get consumers to pay for TV they get for free a second time around, it’ll be one of the most impressive accomplishments in media for anyone’s lifetime.

Media spending, including TV, print and online ads fell by 14% overall, with some far more significant hits in the auto and financial services industries. The worst off are car dealers, whose ad spending dropped nearly 50%, as compared to automotive spending overall at 28% – still twice the overall average.

Though online ads were decreasing, overall spending online actually improved, particularly in online display advertising. This is a small bright spot when online ad spending fell 5% in the first quarter, and major financial firms don’t think it will improve in the following ones.

Media executives are still trumpeting their optimism though.
It may be simply attempting to boost confidence in the industry, but the spending decreases are being explained away by other phenomenon and many execs are holding firm to their beliefs that the industry will still see improvement this year, if not next.

Part of the rise in infomercials has to do with the decrease in ad costs. Many Fortune 500 companies are cutting their budgets big-time, and TV is one of the most expensive marketing options out there. With fewer companies buying ad time, networks are getting rid of those time slots for much lower prices than usual, which opens the door for more infomercials.

Marketers getting into DRTV can also enjoy the bonus of being able to see the effects of their spot in real time. Customers respond through toll-free numbers and web addresses, allowing marketers to track what works and what doesn’t. They can easily replace their ad if the current one isn’t working, minimizing wasted budget money.

Maybe those Fortune 500s should look into getting back on TV with more easily-trackable infomercials instead of ads.

For the last quarter of a century, America and Americans have not experienced significant financial hardship. When it comes to answering questions about how long or how bad this economic turbulence will be, there are no real answers.

Boomers worry about the future
Confidence in financial institutions has all but withered away. The focus for many is on thrifty consumerism, coupon clipping and cutting back on excess spending. One big segment of the population, the Baby Boomers, are experiencing retirement at a rather precarious time in history. They are wondering whether or not they can actually live off their savings or social security for the rest of their lives.

Survival of the fittest
Many boomers are shifting into survival mode. They are pinching pennies, carefully watching their credit and avoiding unnecessary financial risks at all costs. They are more concerned with preserving the status quo than taking risks for financial gain.

Will these changes be permanent?
Gallup chief economist Dennis Jocobe agrees that “a fundamental change is taking place” in American consumerism.

Right now it’s too early to tell how long it will last. Marketers are challenged by this change toward conservative boomer behavior. They will need to focus on the value of a product and the need of core customers more than ever before. It’s very doable, but it requires a recognition of the reality and a willingness and ability to change approaches to match the reality.

Several big chain publications began shutting down titles with no real guarantee of making it in the end. Cottage Living, an At Time, Inc. publication folded, Conde Nast closed down Golf for Women and Men’s Vogue is now a twice-a-year supplement to Vogue rather than being sold as a stand-alone publication. As well, Hearst Magazines said goodbye to the Cosmo Girl, Quick & Simple and O at Home publications.

Why independent publications have it hard
If the big publications have it tough, the smaller, independent publications must really be feeling the heat. And in 2009, indie publications could have a much harder time making it.

“They’re going to have more difficulty than the multitude companies because they don’t have [the resources] to do all the integrated and added value programs for advertisers, and they don’t have as much ability to cut costs,” explained Martin Walker, a magazine consultant.

Times have changed
In more plentiful times, publishing chains or private-equity money could toss a lifeline to these struggling independent publications. But since the credit markets have tightened up, consumer magazine deals fell by 95 percent in dollar value and newspaper deals fell 93 percent according to reports.

No doubt that independent publications serving a narrowly focused audience need to work harder and smarter to be profitable at the same time be flexible, open for negotiation with print media buyers and “make it.” It’s doable, but the playing field has changed.

However, from what we have observed and read, media agencies are playing it safe and realistic when it comes to Internet advertising and ad rates. Online video ads could start feeling the pain just like other advertising media.

If this should happen, there are a few points in its favor that could wind up softening the blow:

Using the online video market to promote business
Experts predict more and more advertisers will start utilizing the online video market within the next few months.

Smaller and new advertisers getting in on the game
Small advertisers will be especially eager to get started because rates are so affordable. They’d be smart to do so as many other marketers may begin to shift toward targeted mediums like web video.

The online video ad business has remained protected because it operates under an inflating shortage that could protect businesses from experiencing a drastic price drop.

Lower rates on the horizon
Advertising, media buying and marketing are all cyclical. We all know that.

And the good news for advertisers is that all signs do point to more inventory and lower rates. Marketing is a process that can never end – and lower rates are always a good thing for those seeking to purchase the advertising space, no matter what the medium.

Sound familiar? Sure, this is the state of our economy today, but it also accurately describes the state of the economy back in 1973.

Ad Age shared this statement with its consumers: “Consumer pessimism is more widespread than at any time in the past 25 years, according to the latest consumer survey.

“Now that the crisis is here, there is a sudden frantic effort to visualize its implications…Government and business seem equally unsure. Our clients just don’t know what’s going to happen. We’ve never seen anything like it before.”

An economic crisis is nothing new. While the above statements seem to echo everything that is happening around us today, they actually come from and Ad Age issue back in 1973. During that time, an energy crisis, inflation and a political crisis sent the economy into a tailspin creating a recession that lasted from until 1975.

Then, as now, keeping an eye on the big picture is key.

The plan is to install an in-store advertising network on 27,000 screens designed to constantly stream video ads from anywhere within the store. In this set-up, the retailer has complete control over managing the ads.

What is the Smart Network? The ad network can easily be altered everyday at the retailer’s discretion. For instance, if it rains, the retailer can adjust the network to broadcast umbrellas and raincoats throughout the many different areas of the store.

Can it really boost sales? There are lingering questions about how effective the Smart Network will be: Will Wal-Mart customers actually spend time watching all of the ads on the screen?

The fact is that most shoppers just want to get inside, get what they need as quickly as possible and then leave the store. Shoppers can experience so many distractions while shopping – talking to their children or talking on the cell phone – that they are unlikely to see every item broadcasted.

This raises the question: Just how effective will the in-store ad network be?

Keeping track of purchasing trends.  Traditional advertising utilizes a range of tools which includes metrics of drtv, ratings and engagement metrics. Measuring will be easier with this new network. The Wal-Mart Smart Network can help monitor the store’s cash receipts, and it can tell retailers which ads are generating the most sales.

If a spot runs in one department and the register receipts show an increase in sales from that department within the same time segment, the Wal-Mart ad team will know for sure. Even so, there is no definitive way to know for certain whether the customer watched the ad before buying an item – a shopper could have made a purchase without even seeing the ad display.

The true effectiveness of the new Wal-Mart in-store ad Network remains to be seen.

Together with Research and Analysis Media (RAM), the company’s study reveals that mobile advertising is an innovative promotional tool marketers can use for branding, recall and determining purchase rates.

A whole new way to advertise. Results are what matter to advertisers looking for proof that mobile devices can keep them connected to consumers.

In fact, JumpTap mobile advertising is providing new customers with a unique opportunity to participate in ongoing brand research insight just for signing up and participating in mobile advertising campaigns. This way, they can see first-hand how well it works.

How mobile ads affect advertiser recall, intent to purchase. The RAM research study began with a sample group of 300 Swedish Telia SurfPort users testing consumer advertiser recall, purchase intent and mobile advertising quality.

Consumers reviewed ads from EMI, Eurobate, Plutolife (Mobilove) and Discovery Channel Sweden. About one third of the participants were not familiar with these ads prior to the study. 

The results:

• The Study revealed JumpTap ads had an average of a 20 percent higher recall rate than comparable mobile ads.

• Mobile users are more likely to continue searching for more information after viewing the JumpTap ads. This includes 10 percent of 16 to 24 year olds and 28 percent of 45 to 79 year olds confirmed that the ads inspired them to continue searching for more information.

• Female mobile users were more likely to make purchases from the JumpTab mobile advertisements than from others. The results included ages 16 to 24 year olds, which was most significant since nine percent of the participants confirmed that they would likely make a purchase compared to zero percent from the other mobile advertising groups.