Is TV Advertising starting to become less effective? I ask this because Digital Advertising expenditure has increased a staggering 22% last year from $59.6 billion in 2015 to $72.5 billion in 2016, according to the Interactive Advertising Bureau. This is, however, no surprise, as Digital Advertising has continued to surpass its previous figures for the past 8 years. It was only time before it happened.
In addition, Accenture’s 2017 Digital Consumer Survey which is comprised of 26,000 participants across 26 countries has found that only 26% of viewers prefer watching TV shows on the now becoming old-fashioned box set, compared to 52% in 2016. Gavin Mann, a Global Managing Director for Accenture’s broadcast business stated “The dominance of the TV set as the undisputed go-to entertainment device is ending,” which is something I can definitely relate too, as I myself don’t even have a TV in my room anymore.
“While a great number of people still watch plenty of TV shows on TV sets, our research uncovers a rapid acceleration in their preference for viewing on other digital devices – especially laptops, desktops and smartphones.” Why ? One of the reasons are because kids are growing up with this technology, it is the equivalent to our Game boys and Tamagotchis except they are being exposed at even younger age. They are growing up with Ipads and Tablets in their palms as early of the ages of two…even my niece knows how to navigate YouTube videos at age three… THREE! My 60 year old mum even has trouble with that!
It is clear in my opinion that these studies indicate a shift in consumer viewing behaviour from the TV box set to digital entertainment. The implications of these shifts for advertising are the following:
- Know your target market – If the products/services your brand are selling are mainly aimed at the younger generation, around 12-30 years old, I would suggest boycotting TV advertising. As these ads will not efficiently reach this target segment, and will be more effective utilising other forms of advertising such as the Social Media platform or Email Marketing.
- Do your research – This is not to say that TV Advertising will be completely useless. By doing research and analysing what TV shows are popular amongst your target segment, you are able to maximise your investment potential by exposing your advertisement to the right people.
- If you haven’t already, start Digital Advertising NOW – Digital Advertising is only going to gain more traction as TV box sets are slowly phased out. I highly recommend getting a jump in front of it now, before it does any serious damage to your sales. The audience is very big through Digital Advertising and can cost next to nothing compared to paying for time slots!
If you want to read more on the studies the links can be accessed here ”Desktop and Mobile Ad Revenue Surpasses TV for the First Time” and ”Sharp drop in consumers that prefer watching shows on TV sets”.