Three Signs of TV’s Continued Staying Power
By Patrick Hanavan |
In November, market intelligence service Warc published its first-ever Global Ad Trends Report focused on television. Their conclusions offered some great news for anyone associated with TV advertising: after reviewing more than 600 case studies, Warc found that ad campaigns with budgets over $10 million devoted 66% or more of their budget specifically to TV. This insight by itself is good news for those associated with TV advertising. But the data from Warc isn’t the only sign of TV’s continued staying power: here are a few more examples of why TV remains as relevant as ever for consumers and advertisers alike.
Because live sports still rule the airwaves
There have been plenty of examples in recent years of consumer attention shifting away from television toward new types of digital devices. Despite these shifts, not all TV programming has seen declines. In fact, live sports broadcasts have demonstrated remarkable staying power. According to an August 2017 analysis by Barron’s, 44 of the 50 most-watched broadcasts of 2016 were either football, basketball, baseball or the Olympics. Advertisers appear to have gotten the message about live sports as well. According to The Economist, TV ad spending on sports has grown by more than 50% over the past decade.
Because TV programming is better than ever
Live sports may get most of the TV advertiser attention these days, but another interesting sign of TV’s staying power is the popularity and quality of TV programming. The same Economist article noted above reported that Netflix, Amazon and Hulu will collectively spend more than $10 billion on original content in 2017. The result of this huge original content surge is that the streaming services’ network counterparts are improving their own programming as well. Hit shows like “This is Us,” “Black-ish” and “Modern Family” have won plenty of critical acclaim along with an increase in interest from advertisers.
Because connected TV is good for everyone
Yet another sign of TV’s continued popularity is the growth of its digital counterpart, connected TV. eMarketer estimates that 60% of all US internet users will watch a connected TV at least once per month in 2017. But rather than splitting advertising into a zero-sum game where one format wins at the other’s expense, connected TV viewing is often additive to the overall viewing experience. Ultimately, connected TV helps improve the viewing experience, allowing consumers (and advertisers) to seamlessly shift between different devices and screens depending on the situation or moment. Best of all for advertisers, scaling ad campaigns between traditional and connected TV can help reach new audiences and expand campaign reach.
While the landscape for TV advertising is certainly undergoing change, it remains a critical tool for marketers of consumer brands. Sustained interest in live sports broadcasts, resurgent TV programming, and advancements in Connected TV advertising are three trends that demonstrate why TV will continue to be key in reaching audiences at scale.