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Tuesday
Wednesday 2nd January 2008
FCC digital transition
Search will be 75% of ad growth in 08
The Federal Communications Commission has approved new rules giving broadcasters more flexibility in making the switch to digital television from traditional analogue signals. The rules will even allow some stations to make a "phased transition" to digital broadcasting; stations will be allowed to reduce or terminate their analogue service before the February 17, 2009 deadline for the transition "if doing so is necessary to achieve their transition," the FCC said.
"The rules we adopt in this item attempt to provide broadcasters the flexibility they need while at the same time ensuring that any disruption to over-the-air viewers is minimized to the fullest extent possible," FCC Chairman Kevin Martin said in a statement.
The government will subsidize the cost of buying an STB converter box by offering $40 discount coupons to anyone who owns an analogue television set. The converter boxes are expected to cost between $50 and $70 and will be available at most major electronics retail stores. The National Telecommunications and Information Administration is accepting requests for two $40 coupons per household to be used toward the purchase of the boxes.
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Search will be 75% of ad growth in 08
Internet search is expected to contribute up to three quarters of all UK advertising revenue growth this year, while traditional media stagnates. WPP’s GroupM predicts that advertising will grow by 6 per cent in 2008, but without the contribution from Google and other search engines, the rate of improvement across other media would be only 1.5 per cent.
Internet advertising will also come close to overtaking television advertising in 2008, emphasising how fast the new medium has become a mainstream means of promotion. This year internet spending is predicted to hit £3.4 billion, (E4.9bn) up from £2.6 billion in 2007, on GroupM’s estimates. GroupM predicts television revenues of £3.57 billion, up 0.9 per cent, although Zenith-Optimedia, its rival, is forecasting growth of 2.2 per cent.
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