Traditional TV may not have a growing audience, but advertisers still perceive the medium as an important part of their marketing mix. That’s the top-level finding of Group M’s State of Video 2018 report.
Analysts state, “We think the market undervalues TV in its ability to drive return on investment, especially when assessed on an output CPM with 100% completion, sound-on, and fully viewed by a human audience. A growing body of evidence shows that a fully viewed ad does a better job of improving brand recall, perception and purchase intent; this should be no revelation, but in today’s market it is, and that is staggering.”
Despite that glowing outlook, traditional TV content is facing a big threat. The big screen is what consumers want when they’re watching live sporting events or enjoying a movie with a group of friends. But, not all screen time takes place from the comfort of consumers’ homes. For younger viewers who are on the run, quick bursts of video content delivered through mobile devices are appealing.
Traditional media companies are always batting with economics and the need to sell advertising. And they’re competing with skinny-bundle competitors who don’t have this burden. Here are three solid approaches.
Some reps have noticed that large marketers are pulling back from TV in favor of digital advertising. In 2019, media sellers may see more of that shift. Group M analysts point out that new entrants are filling the void. Often these new entrants are direct-to-consumer marketers who want to generate awareness and demand. They’re buying TV to connect with their target audiences.
Marketers may be wondering if short TV ads will work for them. Nielsen data shows that between 2014 and 2017, the number of 30-second ads dropped from 61% of the total to 49 percent. During the same time period, marketers purchased significantly more 10 and 15-second spots.
The results of Nielsen’s “neurological ad compression” study of 80 US TV ad campaigns indicate that 15-second ads make the right impression on their intended audiences.
Consumers said the shorter ads were more powerful than longer ads in these key areas:
- Action intent
Paradoxically, the 15-second ads performed slightly lower than 30-second ads when it came to consumer attention.
Over 60% of consumers say their all-day TV viewing takes place in front of a traditional set. But consumers are also devoting more of their viewing time to other screens. The mobile, computer and internet TV categories all score over 20% of total consumers who view TV at some point during the day.
As we move into 2019, Group M analysts encourage media sellers and marketers to develop platform-specific ads. The typical Facebook user will give 3 seconds of their precious time to view your clients’ ads. That’s not a lot of time to get a message across, so designing an ad from scratch makes sense.
Traditional TV is a comfortable space for marketers. They understand how it works. And they’re not sure yet of the economics of new formats like OTT. The promise of addressable TV hasn’t quite delivered yet either. While the market shakes out, remind your clients that “the purpose of advertising is to create demand and then harvest it.”
To understand who watches what kind of TV in the U.S., checkout the AudienceScan profiles available from AdMall at Salesfuel.