Well the answer is kind of obvious. Many marketers still see TV advertising as the best place to reach the masses and create awareness around their brand. Largely driven by big commercial events such as The Olympics, The Superbowl, World Cups and regional championships, TV is still the single largest advertising investment by companies today.
But the fact is that TV advertising is under pressure. For years, investment in digital advertising has been playing catch-up with the same in TV. According to a survey by eMarketer, this year the difference between spending on TV ads and spending on Digital ads is projected to be a mere one percentage point in favour of TV. Next year digital ad spending is projected to surpass TV for the first time and by 2020 TV’s share of ad spending is projected to drop below one third of total ad spending, after having hovered around the 40% mark for a long time.
So why are we seeing this change in ad spending?
Because people are growing weary of mass marketing and demand more personalized and relevant offers, in the right place, at the right time. People don’t want to be disturbed any more, while they are watching a movie, a sports event or their favourite TV show. Even online the “ad-fatigue” is obvious. Just look at the explosive rise in the number of people that use ad-blockers today. From 21 million users worldwide in 2010 to 198 million users in 2015.
The rise and growth of on demand services like Netflix also shows that customers are more than willing to pay for their content and that content comes to them ad-free.
But does all that really make TV obsolete for marketers as a channel? The short answer is no, it doesn’t. TV is still a valuable channel for most companies to build, promote and extend their brands.
The habits are changing
What is changing are the habits of the viewers, which is why TV-networks as well as ad-buyers need to get in front of this. The best in the business are already applying programmatic TV-ad buying to their strategy, where focus is shifted from relying on show-ratings as an indicator for desirable audiences, to programmatic technology where audience data is used to channel messages to the right audience at the right time. Hence living up to the demand of more personalised advertising from consumers.
With that in mind TV, as a marketing channel, falls completely in line with the emerging trends within Omni Channel Marketing. The market demands a consistent and relevant message across all marketing channels, including TV, which is why TV-ad buyers and sellers must rethink the customer experience that they are offering the audiences.