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SVOD providers are particularly problematic for broadcasters and their advertising partners, because they hurt ad supported television in a number of ways: Consumers with SVOD subscriptions replace time spent watching ad supported television with ad free SVOD watching With so much of online video viewing time spent watching ad free, those quality ad opportunities that are available are more expensive to buy Consumers get a decreased tolerance for advertising as they grow used to seeing content uninterrupted.

U.S. ad agencies spent 2% less on broadcast TV networks in the 4th quarter of 2014 and 16% less on national cable TV. The company also found that, if you exclude the Olympics, broadcast ad revenue would have declined 2% for the full year (it increased 4.1% when the Olympics are included.)

online originals are growing prodigiously and a good proportion of that inventory will provide advertising opportunities. For example, Alex Carloss, YouTube’s head of original programming, announced the site would be funding more original programming in the same way it did in 2012.

Twitter is specifically about what is happening right now,” says Ron Amram, senior media director of Heineken USA, adding that Amplify has become Twitter’s most promising ad tool. “To allow a brand to have real-time ownership of a video that says, ‘This is what you need to know right now’ is pretty powerful.”

To attract more social media attention, “marketers are taking moments that would have been talked about at the water cooler and are allowing them to unfold live,” says Adam Bain, Twitter’s president of global revenue.

A division of 30 employees works with media companies to ensure that networks and their actors tweet during broadcasts and that Twitter hashtags and user names appear on the screen

traditional scheduled TV is limited by what he called the "tyranny of the grid," or the 21 hours of prime-time programming that get the most viewers. Anything that doesn't fit into that grid gets thrown out

In contrast, internet TV allows audiences to aggregate over time and space, and can afford to curate content that has smaller audiences at any one time.

Netflix originals don't need to be 48 minutes long to fit into a prime-time schedule, and don't need to force cliffhangers that keep viewers in suspense for the next episode, because viewers can "binge" into the next episode right away.

Twitter's 49.2 million U.S. users generally skew younger and are disproportionately in cities, for example, according to marketers and media analysts.

marketers see potential value in knowing which shows have Twitter enthusiasts. For some, it is becoming a factor when they purchase TV time: The theory is that if fans are engaged on Twitter that "means the ads are also being paid attention to,"

The stakes are high for Twitter, which is under the spotlight of an initial public offering of stock and has identified TV-related ad spending as a crucial revenue driver.

Robbins, whose career has included producing TV shows Smallville and One Tree Hill, admitted that it's still much more profitable to have a popular TV show than a popular YouTube show, but sees that changing. "The advertising model is catching up very slowly. Right now TV is getting this much money, and YouTube is getting this much," said Robbins, with gestures to indicate huge and tiny ad revenues respectively.

That's one reason why DreamWorks bought AwesomenessTV so early in its growth. Robbins said the company plans to spend around $10m creating shows this year, from bigger projects like Side Effects to smaller videos designed for viral sharing.

"There's a handful of companies in Los Angeles right now who I think are going to be the next generation of cable networks,

"Instant replay plays to Twitter's strength of news in real time and on mobile," says Glenn Brown, director of promoted content and partnerships at Twitter, which is partnering with Turner Broadcasting. A third party, Silicon Valley-based SnappyTV, is supplying the underlying technology to deliver 15-second video highlights. Consumers can follow @marchmadness for video.

The "instant replay" concept, which Twitter introduced last year with ESPN for college bowl game highlights, offers Twitter a way to strike up advertising sponsorships. Also, it fortifies Twitter's format for brand names to embrace the microblogging service.

Eventually, eMarketer estimates Twitter will account for 13% of U.S. social-advertising revenue by 2014 ($807.5 million), compared with 5.5% last year ($288.3 million).

Nielsen Co. started labelling people in this group "Zero TV" households, because they fall outside the traditional definition of a TV home. There are 5 million of these residences in the U.S., up from 2 million in 2007

Unless broadcasters can adapt to modern platforms, their revenue from Zero TV viewers will be zero.

For the first time, TV ratings giant Nielsen took a close look at this category of viewer in its quarterly video report released in March. It plans to measure their viewing of new TV shows starting this fall, with an eye toward incorporating the results in the formula used to calculate ad rates.

The Advertising Platform Formerly Known as Mass Media Advertising communications channels have always offered their audiences a value exchange. For instance, TV provides entertainment experiences in return for advertising and indirectly a cable fee, magazines present an edited cornucopia of material on a selected topic in return for a cover price and advertising.

Social media and digital advertising are currently testing the limits of their value exchanges by expecting consumers to provide specific information about themselves or their behaviors, which the digital properties can subsequently leverage in targeted advertising.

now younger consumers’ growing sense of entitlement gained in the digital world (where information was often offered at low or zero cost) is shifting across all channels. We only have to look at the emergence of TV cable cord-cutters or the growth of services such as Bit Torrent for evidence of this. Bit Torrent has increased its audience by over +70% in the last two years to a monthly audience of 23 million users.

Media companies also want to gather and crunch all the data about viewing habits they can to sell to advertisers. The companies receive less high quality data when people watch network programming through an app from Dish Network or DirecTV instead of using their own apps.

"Both sides are paranoid. The operators think that if the programmers can create a one-to-one relationship with the consumer, some day they peel off and become their own HBO," said an executive at a media company involved in content negotiations who was not authorized to talk to the media.

Ad sales on the platforms are still small and hard to estimate, but revenue is expected to grow as more viewing moves to mobile devices