The future of TV advertising is both challenging and rife with opportunities. We all have that one TV ad etched in our memories – be it Cadbury’s Dairy Milk Drumming Gorilla, #Like A Girl from Always, or John Lewis’ captivating ad featuring Elton John. TV advertising has seamlessly woven into our daily lives, even if we occasionally find it annoying.
Unsurprisingly, this sector of marketing is on a continuous upward trajectory. According to Statista, spending on TV and Video Advertising is projected to reach a staggering $339.70 billion in 2024. Yet, right before our eyes (pun intended), significant shifts are taking place. In 2022, for the first time, advertisers spent more on Digital Video Advertising than on Traditional TV Advertising. As traditional TV undergoes its transformative journey, let’s delve into what this evolution might signify for the future of TV advertising.
The End of Linear TV:
The surge in Digital Video Advertising spending aligns with evolving patterns in how audiences consume TV content. On-demand streaming is quickly expanding, directly influencing the types of ads being served. As a result, further growth in Digital Video Ads is anticipated due to the continual expansion of streaming services and traditional TV channels venturing into this realm. However, while linear TV is becoming gradually obsolete, we can say that this media is transforming, rather than just disappearing.
TV Ads Will Finally Be More Targeted:
Addressable TV and programmatic advertising technologies empower advertisers to segment TV audiences and tailor ads to different viewer groups. This means that households watching the same programs will see different ads based on their profiles. This shift enables TV advertising to extend beyond mass-market reach, offering customisation through algorithms, data, and machine learning. This opens up TV advertising to smaller advertisers. For example, a regional restaurant chain benefiting from tailored TV ads only focusing on specific geographic areas.
Cross-Platform Advertising:
Integrated marketing campaigns, combining different ad channels, have always amplified marketing messages. Traditional TV expanding into on-demand and online streaming creates opportunities for brands to reinforce their messages across different channels combining TV, social media, programmatic, and more. Generally, we will see marketers using TV ads as an element within their broader media mix than a main focus.
More Emphasis on Creativity:
Various tools enable the production, optimisation, and adaptation of video creatives faster than ever. AI tools facilitate the development of numerous creative versions based on data signals like time of day, weather, and location. This allows brands to continuously test and adapt their creative based on campaign outcomes. Alternatively, other AI tools allow creating videos from still images. This makes video and TV advertising accessible to brands with smaller budgets.
Shoppable TV Ads:
Similar to social media, shoppable interactions are anticipated. Direct shopping from your TV streamlines the sales funnel, making conversion immediate. This marks a significant shift, as TV advertising, traditionally used for creating awareness, now offers numerous opportunities for achieving and measuring conversion.
Accurate Performance Measurement:
While traditional TV advertising focused on who is watching, the rapid digitalisation of television shifts the focus to who is actually buying, converting, or taking other actions. Just like online ads enable better tracking compared to print, digital TV ads will provide superior performance tracking.
TV advertising will continue to be an exciting field within marketing, attracting significant investment and offering new, innovative ways to engage with our audiences. Regardless of the changes, it remains a powerful means to make a lasting impact and get your brand noticed.
This blogpost was written by Kalust Manukyan one of our CIM Marketing tutors, to find out more about Marketing Courses with the Oxford College of Marketing, get in touch with our team today.