For years, we have been hearing that TV advertising is dying. In some reports, already dead. Yet, we believe TV advertising is alive and well, maybe doing better than ever. The reason TV advertising is doing so well is the very reason that people say it is dying, there are so many platforms available with such great targeting. Now it is just a matter of re-imagining TV advertising, not writing it off.
The Power of TV
TV still has unparalleled reach. It touches more people worldwide than any other content-based media. Currently, more than 120 million American homes have a television. That’s nearly 94 percent of all homes in the United States, and most of those homes have more than one TV.
Television is about sight, sound and motion. No other media can both tell a story and inspire emotion like TV. Studies have shown that 60 percent of consumers are likely to make a purchase after viewing an ad on TV compared to only slightly over 40 percent for viewing ads online or over social media. While watching an ad, television viewers are a captive audience with no other distractions, even if only for a few seconds. Television is also a trusted media. And with the almost limitless creative ways to demonstrate a product or service, messaging seems more realistic.
What Is TV Advertising
Let’s review what TV is. As previously stated, it is sight sound and motion used to sell a product, service or idea. TV can be delivered by a variety of platforms. Originally, there was only broadcast television, with either national or local programming. Then came cable, which not only multiplied the number of channels and programs but also reduced the geography needed to buy advertising. Broadcast and cable are often referred to as “linear” because the programming is delivered to all viewers at the same time.
More recently, we have seen people switching to OTT and CTV, or Over-the-Top and Connected TV. OTT and CTV are how “cord-cutters” get television programming via the internet. Viewers watch OTT on devices from a TV to a smartphone. CTV describes programming seen on a smart TV only.
At Metro Valley Advertising we also include Digital Pre-roll as a form of television advertising. Digital pre-roll ads are the :15, :30 and :60 second commercials you see when watching a video online. They play before and during news and sports highlights, YouTube videos, recipes and more. Like OTT/CTV they are delivered by the internet and have the advantages of digital delivery.
Who Watches TV Advertising
We often hear that people don’t watch TV anymore. In the case of younger viewers ages 12-17 they watch most of their content on smartphones or connected devices. Eighteen to thirty-four year olds watch two hours a day and those thirty-five and older watch five hours a day. The demographics with the most money watch TV.
Re-Imagining TV Advertising
How you use television for advertising will depend on budget, the geography you serve and the target audience you wish to reach. If you have a sizeable budget and want to reach large audiences then linear television is the smart choice, unless your target is teens. If your consumer is very segmented, then choose a digital delivery. OTT/CTV and digital pre-roll offer targeting by demographics, behaviors, interests and precise geographies.
If you are still not convinced that television works, look at all of the companies that have recently demonstrated explosive growth using the medium as their primary advertising tool. Peleton and Uber quickly come to mind. E-retailers such as Hello Fresh and Casper rely on sight sound and motion. If you were to combine the tech giants Facebook, Amazon, Google, Apple and Microsoft they would be the world’s largest TV advertiser. All of them use a combination of linear and digital television advertising.
It is clear that many of the world’s most sophisticated marketers still rely on television advertising. Have their strategies evolved? Certainly. Re-imagining TV advertising enabled them to adapt to changes in how people watch TV and then use the media to fit their respective strategies. If you want to learn how TV can grow your business contact us.