Is TV advertising working in 2022?

Jul 8, 2022 / Industry Insights / FOTW

Over the last decade, the growth of the internet has boomed to greater heights. Because of this, businesses now have access to even more powerful platforms on which to execute their marketing strategies. However, as the internet continues to expand, “television killers” like Netflix, Disney+ and YouTube have emerged to compete with traditional broadcasting. Many people believe that since the internet is the future and according to the direction in which we are going, television will eventually become extinct.

The question that is on a lot of people’s minds is, “Is television on its way out?” as brands and companies now have the ability to advertise across the various platforms that are available on the internet, primarily social media, streaming platforms, and regular websites. In 2022, are commercials on television even relevant? Before we give a definite answer to those questions, let’s take a look at what’s really going on with the way things are going in the television industry.


 The Current State of TV Advertising

Source: Vaughan-Mountford

Television isn’t going anywhere, which is disappointing news for those who are predicting its demise because of Over-the-Top (OTT) services like Apple TV and Netflix. Even though the number of people watching television had been steadily on the decline prior to 2020, the COVID-19 pandemic had the effect of reinvigorating television viewership numbers yet again and, as a result, maintaining the efficiency of television advertising.

In spite of the fact that it might have appeared that home-screen commercials lasting 30 or 60 seconds were on their way out, the data and statistics suggest otherwise. The global market for television advertising is expected to reach US$95.98 billion in 2022, up from US$91.72 billion in 2021 and with a compound annual growth rate of 4.6 per cent, as reported by Business Wire. Given that those numbers are expected to continue growing in the years to come, it would appear that television and TV advertising will be around for the foreseeable future.

So, in this day and age, are commercials broadcast on television still effective? The short answer is: yes. Despite what you might have read about it on the internet, the truth is that television advertising is still a viable platform for advertising, and it is highly recommended that companies consider incorporating this platform into the overall marketing strategy alongside the other platforms that are available.

Do Commercials Work?

Because the majority of people were required to work from home as a result of the pandemic, more people have stayed inside during the past three years than ever before. Because of this unique phenomenon, television viewership has increased alongside that of so-called “television killers,” and as a direct result, more people are seeing various types of television advertisements on a daily basis. Even nowadays, as restrictions are being lifted, it is anticipated that TV viewership will continue to increase especially as more businesses choose to implement remote or hybrid working models rather than return to a 100per cent at-office model.

Even though they might not reach the same level of effectiveness as they did before the pandemic, television commercials are still an effective way to attract customers. With television currently ranking as the second most profitable advertising medium, the significance of advertising on television is higher than it has ever been. To put this into a more meaningful context, consider that in the United Kingdom, television was responsible for 95 per cent of actively viewed advertisements, whereas across the pond, in the United States, television advertising was responsible for a quarter of total ad revenue.

Because it is anticipated that advertising will continue its growth over the course of the next few years, it is safe to say that television advertising is still effective even in the present day. When planning your next marketing campaign, preferably with a great advertising agency, it is highly recommended that you do not underestimate the effectiveness of commercials that are broadcast on television.

Why TV Advertising Is Still Valuable

Source: Media Post

In a world driven by the internet, many companies look to the platforms that are available to help them communicate with their customers. Thankfully, with TV evolving with the times, television advertising effectiveness remains high, especially for those who want to capture a far larger audience.

The television is an active medium that can speak to anyone at any time and, for the most part, is a platform that is active 24/7, which is why it’s highly recommended that you utilise this platform in your marketing strategy. Here are the main reasons why TV advertising is still a viable option for your company:

TV Advertising is Still Profitable

Regardless of the state of technology, television has managed to evolve alongside the growth of the internet and it remains one of the most profitable media platforms available. The amount of money spent on advertisements on linear television in the United States is expected to reach its highest point of $68.35 billion this year, up from $65.66 billion in 2021 as stated by eMarketer.

But all this spending hasn’t gone to waste as the benefits of advertising on TV has been proven across the globe. According to Statistica, between 2020 and 2021, worldwide TV advertising revenue grew by US$17 billion at about 11.9 per cent. In the UK in 2020, TV delivered 71per cent of total profit generated by advertising, according to Thinkbox. This is a growth that’s projected to accelerate for years to come, making TV advertising a highly profitable avenue for companies.

People Trust TV Ads the Most

Television advertising has been around for a very long time, so it shouldn’t come as a surprise that it is considered to be one of the most reliable forms of advertising. In the UK, about 45 per cent of respondents to a survey by Thinkbox believe that television is a platform where they know they can find trustworthy advertisements. In comparison, only 5 per cent of respondents believe that social media ads are trustworthy.

TV advertising is also regarded as a highly credible medium, especially in comparison to the platforms available on the internet. For the most part, it certainly helps that TV advertising remains highly regulated by bodies like the Advertising Standards Authority (ASA) compared to most advertisements on the internet, giving TV commercials a higher standard to achieve. While this could boil down to those internet platforms facing transparency issues thanks to “clickbait” content along with the prevalence of ad blocking software, television has been consistently considered a reliable source of advertisements.

Audiences Have Better Recall of TV Advertisements

TV advertising has been proven to be a stronger form of advertising. In some regions of the world, and especially in the UK, advertising on television goes up to three times more effective than any other form of advertising. TV commercials have also been known to attract consumers in ways that other advertising platforms have simply never been able to, especially through its unique storytelling capabilities squeezed into 30- to 60-second clips.

When companies make a good TV ad, it has the potential to attach to people’s memories for years to come and could even live through future generations. There’s a reason why the Fairy Liquid ads are so iconic in the UK, and even the more recent Old Spice “The Man Your Man Could Smell Like” commercial has its place as one of the best commercials in the modern day. Good TV ads become embedded in people’s brains, making it easy for those companies to market their products through television and a consistent advertising campaign can help keep customers coming back in the long-term.

Television Advertising Has the Highest Impact

Advertising on television, in contrast to advertising on the internet, can simultaneously address a diverse range of audiences. And, unlike the internet or social media advertising which tend to be highly targeted to reach specific groups of people, television can reach a much larger, broader audience. This is helpful to those companies seeking new customer demographics, or those trying to reach out to their target demographics that are otherwise unreachable through other viable advertising platforms.

According to a study commissioned by Thinkbox, TV advertising effectiveness includes its capability to deliver the highest profit at the greatest efficiency, with minimal risk involved.. There will always be a wide range of people across various demographics sitting in front of the television at any given time of the day – sometimes, multiple demographics in front of a singular TV! This unique characteristic of the television makes it a great choice for marketers who want their ads to reach a wide range of people at once and it is a great marketing tactic that has been successful for decades.

Television Advertising Is Resilient

Television, as a medium, has shown itself to be very resilient, which is one of the reasons why advertising on television can be so effective. Even though the television industry has been hit with a steady stream of potential disruptions over the course of the past decade or so, television viewership has remained as steady as a rock. This is an important point that bears repeating.

A study conducted by the Broadcasters Audience Research Board (BARB) between the years 2009 and 2019 have shown that television viewership has remained stable over that period of 10 years, with a household viewing an average of 3 hours and 39 minutes of TV per day. This, in spite of more and more households obtaining internet access during that same period of time, peaking at 89per cent of households with internet access in 2019. Another study conducted by BARB found that a whopping potential of 97.1per cent of the British population is reached per month.

The Strongest Halo Effect

Compared to most other advertising platforms, the halo effect caused by television advertising is unmatched. The phrase “halo effect” refers to a consumer’s preference for a line of products because of their previous favourable experiences with other items produced by the same manufacturer. This means that brands will be able to see increased Return on Investment (ROI) if they include TV advertising into their marketing strategy, highlighting another key importance of TV advertising.

Research conducted by the Canadian firm ThinkTV found that excluding television as an advertising medium in a company’s marketing strategy can decrease ROI figures by around 19 per cent. Within the same research, the firm also found that a benefit of advertising on TV is that it can increase ROI to around $14.34 per dollar spent in the short-term. In the long-term, that value only gets better, with the ThinkTV study reporting up to $23.40 returns per dollar spent when companies add TV advertising into their brand marketing campaigns.

The Future of TV Advertising

Companies that are thinking about planning their next marketing campaign shouldn’t ignore the many benefits of advertising on television. Instead, they should definitely consider including television in addition to other platforms when planning their next campaign. Television is still a highly valuable platform and will continue to be important for the overall marketing strategy of a company for a number of reasons, including the fact that it provides a guaranteed return on investment and that its profitability is booming.

So, to bring back the question “do commercials work in this day and age?” – the general consensus is that it definitely does. Television ads remain one of the most reliable forms of advertising on the market and it’s still a highly profitable platform despite it being the “age of the internet”. And as television grows alongside the internet, evolving as needed, the importance of TV advertising won’t be slowing down any time soon.


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