Should you invest in TV ads in times of Social Media?

Advertisement on television is very expensive and smaller companies usually cannot afford it. However, it’s a fact that companies still do invest in costly TV campaigns. What is their motivation of doing so? Are people still watching TV? And how can they measure the return on the investment?

TV Consumption

The smartphone is the solution to everything these days. Besides communication you can use it to order food, taxis and also get informed about the latest. Do people still watch television?

A study published by Deloitte found out that the total number of TV minutes watched by adults do currently not fall compared to prior years. The youngsters aged 18 – 24 years watch less TV than in prior years, but the baby boomers aged 65+ spend more time in front of telly. Therefore, total TV hours watched are flat and might even increase over the next 5 years.

All in all, TV is losing market share and has to share the pie with social media. In terms of total spend, it is still growing.

Changing Patterns with Digital TV

Digital TV has brought some flexibility to watching a broadcast as now you can record your favourite series and watch it later. This has the huge advantage that you can skip advertisements. However, in practice this is not the case. Only a small minority of consumers is viewing time shifted.

Hey, TV channels, this is fairly good news, eh!

With increasing competition from private TV stations and social media alternatives prices for TV ads have decreased over the past few years.

When to use TV advertising

TV is particularly interesting in situations when you want to reach a broad audience of consumers and potential customers. This is particularly the case in the context of brand building and product launches but also to increase traffic to websites or stores.

In contrast, video streaming on PC and smartphone has a relatively small user base. And unlike with TV where consumers are used to be interrupted with commercial breaks ads on digital media are disliked.

All in all, TV ads still have a huge audience even in the modern times of social media. I recommend to clearly define the goal and target audience of an advertisement campaign in order to find out whether it makes sense to create a TV spot.

You can find the full Deloitte article here.


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