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UBS: 10% of Marketers to Shift Ad Spending to TV

by | 2 minute read

Media buyers and advertisers still believe in the power of TV advertising. That’s one way to interpret the findings of a new report out from the UBS equity research team. At the same time, digital continues to perform, but not every category wins accolades.

UBS, through its equity research team, asked 40 media buyers about their purchase intentions for the next two years. These execs are responsible for spending over $40 billion in ad money. Here’s what they said:

  • Maintain current balance between TV and digital 39.6%
  • Shift more money to TV 10.4%
  • Shift money to digital 24%
  • Major shift to digital 26%

The findings indicate that for about 50% of buyers, TV purchases will remain steady or increase. For the other 50% of buyers, digital will capture more ad money. The shift to digital won’t be all about video. Clients are telling ad buyers to spend more on paid social spot and on search.

Digital advertising continues to deliver what marketers like in terms of targeting and measurement. The digital ecosystem also allows marketers to quickly adjust campaigns that aren’t working. But digital isn’t all things to all people.

Media buyers continue to look to TV for specific reasons. John Hodulik, UBS equity analyst, notes that the report findings are “relatively consistent with how advertisers reported shifting budgets over the last 24 months.” To some extent, the interest in TV advertising is reflective of the medium’s strength. In a TV ad campaign, marketers can count on reaching a mass audience on an acceptable ‘content environment.’ In another positive development for TV, buyers noted that when a company reduces spending in the format, they’ve noticed a drop in online searching for their brands. As a result, they will be cautious about cutting too much from TV budgets.

Consumers have also shown a keen interest in accessing entertainment through OTT. Advertising has followed. However, we all know that the shows viewed through these systems tend to be laden with one or two ads that repeat themselves. UBS reports that the ‘friction point’ on how ad space is bought and sold remains a problem. Until those details are worked out, advertisers aren’t pouring money into the format.

You can help your advertisers buy TV inventory wisely by studying the AudienceSCAN profiles on AdMall from SalesFuel.  Check out the demographics and purchase intentions of Daytime Talk Show Watchers and TV Reality Show Watchers and share the details with our clients.

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.
May 31, 2018 Media + Marketing Tags: , , , , ,

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