Is TV Advertising Working in 2023?
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 technology 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?” since 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 2023, 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 advertising is experiencing a significant evolution, defying the assertion that it’s an antiquated mode of marketing. The ongoing advancements have not marginalised TV advertising; instead, they have enhanced its effectiveness by introducing cutting-edge technologies and strategies. It’s no wonder why £5.28 billion was spent on TV advertising in 2022.
In contrast to traditional TV ads, the industry is shifting towards targeted TV advertising, which can deliver personalised content to specific viewer demographics. Advertisers now have the ability to adapt their messaging based on viewers’ preferences and habits, thanks to machine learning and AI technology. Furthermore, the intertwining of TV and the internet has given birth to Connected TV (CTV) and Over-the-Top (OTT) advertising, which offer interactive ad experiences, further cementing the relevance of TV advertising in the present context.
In addition to technological advancements, the effectiveness of TV advertising is also buoyed by its ability to stimulate multiple senses simultaneously. High-definition visuals, clear audio and expert storytelling techniques often make TV commercials more engaging, memorable and persuasive. TV advertising continues to be a powerful medium to evoke emotions, create desire and build brand narratives, providing a human touch to marketing.
Also, the capacity to coexist and collaborate with other forms of advertising, like social media and online platforms, actually enhances TV advertising’s effectiveness. The convergence of traditional and digital media has facilitated cross-platform campaigns that amplify the marketing impact. Advertisers can leverage TV advertising’s broad reach and combine it with the precise targeting capabilities of digital platforms to create multi-faceted campaigns.
Thus, the current state of TV advertising is not just vibrant and thriving, but it also presents immense potential for advertisers to engage and connect with audiences on a personal level. The future of TV advertising, backed by technological innovation and strategic integration with other platforms, certainly looks promising.
Do TV Commercials Actually Work?
In this day and age, are TV adverts still effective? The short answer is: yes. Despite what you might have read, the truth is that television advertising still remains a powerful platform for advertising. It’s highly recommended that companies consider incorporating this platform into the overall marketing strategy alongside the other platforms that are available.
Although we’re well past the tail end of the pandemic, remote and hybrid work models remain popular despite offices being “open for business”. 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, with restrictions 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 100% 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 still ranking as the second most profitable advertising medium, the significance of advertising on television is higher than it has ever been.
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 the telly as an advertising medium.
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.
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.
Still unconvinced? Here are the main reasons why TV advertising is still a viable option for your company:
1. Audiences Still Trust TV Ads 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% 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% of respondents believe that social media ads are trustworthy. This is also considered a reason why TV advertising has the biggest potential to drive societal change.
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.
2. 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 tends 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 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.
3. 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 in 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%. 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 same ThinkTV study reporting up to $23.40 returns per dollar spent when companies add TV advertising into their brand marketing campaigns.
5. Best Long-Term Performance
Companies typically divide all aspects of their business into two things — short-term and long-term. Performance, returns and profitability are no different. Without getting too deep into the nitty gritty details, successful business owners know that although quick wins are great, it’s really the long-term gains that keep a business running. This is where TV takes the cake.
Thinkbox describes a study by Meta which found that, as expected, short-term performance marketing is the most effective through online video advertising (ie. YouTube and social media) and paid search (AKA Google advertising). However, it also found that short-term only accounts for 40% of payback — meaning that the best returns can be found within long-term performance. And the king of those long-term effects? Television. No wonder even Meta themselves like to advertise on the Gogglebox!
But according to a recent Thinkbox report, the rewards you reap lay solely in the hands of the creative that you broadcast. Essentially, when you do your TV ad creative just right, you could enjoy up to 12 times the return on investment — which is quite significant in business.
The Future of TV Advertising
As we venture into the future, TV advertising is poised to become even more advanced and intuitive. It will leverage emerging technologies like augmented and virtual reality to create immersive ad experiences, further enhancing viewer engagement. The integration of AI and machine learning will continue to provide granular audience insights, enabling advertisers to deliver increasingly personalised and relevant content. This advanced personalisation will result in more effective and efficient campaigns that resonate with the audience, leading to stronger brand affinity and higher returns on investment.
The future of TV advertising will also be defined by its seamless coexistence with other advertising channels, particularly digital platforms. Cross-platform campaigns will become the norm, with TV acting as the catalyst that drives viewers to engage with brands on digital platforms and vice versa. The concept of ‘TV Everywhere’ will continue to grow, making content and associated advertising available across devices and platforms, thereby extending the reach of TV advertising beyond traditional boundaries. In essence, the future of TV advertising looks bright and promising, ready to adapt and thrive in the rapidly evolving marketing landscape.
How to Unlock the Power of TV Advertising
TV advertising today is changing by leaps and bounds, making use of new technologies to show ads to specific groups of people. This means that viewers see ads that are more relevant to them. TV is also working together with the internet to provide interactive ad experiences, proving that TV ads are still important. Looking to the future, TV advertising is set to get even better.
With new technologies like virtual and augmented reality and with the help of artificial intelligence to understand viewers better, TV ads will become more effective than ever. TV will also continue to work more closely with digital platforms like social media, making advertising campaigns more powerful. This shows that TV advertising has a strong future ahead.
But remember, these benefits can only be enjoyed when you get the creative right. Crafting an impactful ad requires the right mix of ingenuity, understanding of your audience, and a knack for storytelling — and that’s where our advertising agency shines. By tailoring strategies to fit your brand’s vision, we’re committed to making your brand unforgettable. Sound like a plan? Then give us a ring today.