Companies and advertisers have used television advertising for decades. Commercials have become a great way to get products and services in front of an audience in an original and creative way. Over the last few years, though, television has morphed into a dynamic streaming machine that users love because of the convenience and wide availability of programming. There’s been a lot of talk about cutting the cable and using only streaming for entertainment. Firstly, traditional TV is still alive. Take, for instance, the number of live sports events that are only carried through television channels. And secondly, the changes in the ways people watch haven’t done away with advertising. It just means it’s time to take a more creative and innovative approach to get your brand in front of your viewing audience.
Why TV Ads are Still Effective
While some are sitting on the sidelines just waiting to see what happens with television’s role in marketing, TV remains a significant player when it comes to developing effective marketing strategies. Television is still one of the most efficient and effective means to create widespread awareness. Depending on the audience and the time of exposure, television is still very capable of driving huge numbers of conversions. The challenge isn’t so much in the advertising, as much as it is in the measuring of metrics and insights. Marketing technology is on the brink of being able to trace the audience’s responses, so it is expected that the ability to measure its impact should become more sophisticated soon.
When the first television ad aired in 1941, few homes even had a television set. Those that did own one had a small black-and-white TV. Shows started around six in the morning and ended with the National Anthem at midnight. But today, television technology has advanced, and not only do homes have a color TV, but most have them in almost every room of the house. Today, the average adult in the US watches almost three hours of TV every day. Why are some ads so expensive to air? Because they are effective.
Statistics of TV Ads
TV ads are not dead, but the landscape is changing to adapt to the new tv advertising trends of its viewing audience. Here are a few statistics for TV ads.
- Just last year in 2021, nearly $65 billion was spent on TV ads.
- In the US alone, TV advertising revenue reached over $72 billion in 2021, it is expected to surpass $81 billion by 2025.
- A 30-second spot in Super Bowl LIV fell in the cost range of $5 to $5.6million. But for a 30-second ad on local TV, the cost is between $5 and $10 per 1,000 impressions.
- Consumer-facing companies have increased traditional advertising spending by over 10.2%, and B2C product companies have increased their spend by almost 5%.
Current Television Ad Trends Showing How TV Marketing is Adapting
Due to the growing influence of digital marketing, TV has moved into a secondary role when it comes to marketing strategies. Marketers have rolled much of their money to digital mediums simply because of the ability to personalize ads along with the ease of measurement. But don’t count TV providers out yet. They continue to stay competitive, which has spurred a few trends that include programmatic and multiscreen tactics. Marketers are changing how they define and classify their audience, and how they use integrated online and offline marketing efforts and metrics.
Television ads are likely to remain part of key marketing strategies for years to come. The reason is because TV remains the most effective way to create awareness to the masses. Television can still drive huge numbers of conversions, depending on the vertical and exposure of the audience. The challenge is still trying to obtain solid actionable insights and metrics. This leaves marketers looking for out-of-the-box solutions. As the world of marketing continues to evolve, it’s led to some major trends in tv advertising.
Leveraging Mobile and Multiscreen Environments
It’s becoming clearer that TV and mobile are not enemies. Many thought mobile ads would overtake TV ads. Even though mobile marketing has grown, that hasn’t quite pushed TV out of the picture. Consider this, most people are on their smartphones while watching TV. Rather than seeing the two as enemies, marketing trends are seeing them as partners, which leads to innovative marketing strategies and goals. When consumers engage with content on multiple devices, a halo effect occurs. Consumers feel a positive connection with the brand when they see it on multiple platforms. Customers tend to be more responsive and receptive to mobile ads while they are watching television. Using the latest attribution analytics allows marketers more insight into when users are watching TV, the networks they are watching, and which mobile channels they use.
Mainstream Programmatic Television Advertising
Most organizations find traditional TV ads time-consuming and hands-on. Programmatic television ads eliminates some of these issues by automating decisions. It chooses the best time and place for an ad to be aired. This type of automation keeps TV competitive with the digital world. Programmatic television also extracts data right after an ad is aired, which allows for timely optimizations. Marketing professionals use programmatic Tv metrics to guage how many times an ad is clicked, how much each click costs, and the resulting ROI.
Thanks to the recent pandemic, the use of video streaming platforms has accelerated. Marketing strategies are more streaming friendly, as a result. Over the last few years, interactive ads have emerged as an alternative to traditional cable TV advertising. Interactive advertising connects one-on-one with its audience and can better gauge consumer preferences. This allows brands to use ads to engage with their audience. Users are presented with two ads. They have the option of visiting the site or watching a commercial. This gives consumers more access to the brand, and website traffic is likely to be boosted along with brand equity.
What’s the Future of TV Advertising?
While many were quick to think streaming and social media would push TV out of the picture, that just hasn’t happened at all. Instead, most homes subscribe to both over-the-top and traditional services. Many consumers have multiple subscriptions to OTT services. Digital revenue has increased over the last few years, but so has TV ad revenue. Instead of presenting a closed door to advertising, for innovative marketers, it opens up a whole new world of advertising and marketing opportunities.
Engaging content is the wave of the future, and it’s more important than ever. Having access to better attributable data doesn’t mean it’s time to relax when it comes to quality. Today, high-quality doesn’t mean it is expensive. Rather than spending millions on a product shoot that lasts days, influencers can help create extremely relevant and personalized versions of the same content.
Ad models are already leaning toward allowing consumers to choose personal ad loads. Generally, users who choose an ad-supported option, find ads less intrusive, since they signed up for them willingly. Combining this with highly-personalized media, creates a positive ad experience for users. Giving users a choice doesn’t always mean less profit.
The days of one-size-fits-all marketing strategies will soon be gone. Networks are leaning toward customized packages that fit the needs of consumers. They are embracing the fragmentation. Negotiating customized services leads to more revenue and happier users.
Many were writing their final thoughts about traditional TV advertising. But instead of being a thing of the past as many predicted, innovative marketing strategies have kept television ads in the game and have helped paint a bright picture for the future of TV advertising. Instead, it’s beginning to see growth and paired with other advertising strategies it is still a powerful tool that can be leveraged to increase revenue. Marrying TV advertising with programmatic media, interactive media, and the latest technology can yield the best results.