CNBC Catalyst’s Lead Creative Strategist, Katya Ionova, discusses why TV advertising should remain a key consideration for marketers
The first official, paid television advertisement in the world, aired in the US 75 years ago on July 1st 1941 on the NBC-owned, WNBT. Today, television is still the most dominant advertising medium attributing to 37% of global ad spend in 2015.
However, when we celebrate the next anniversary of TV advertising in 2017, it is predicted that businesses around the world will spend more on internet advertising than TV commercials for the first time ever, mainly driven by the growth in mobile.
In fact, mobile ad spend will overtake TV in the UK as early as this year according to research from eMarketer.
Ironically, it is the digital powerhouses that benefit the most from the mobile ad surge that helped to drive UK’s TV advertising to record highs in 2015.
Google, Facebook and Netflix spent 60% of their own marketing budgets on TV ads in the UK. Why such a significant investment in traditional media by new media? Because TV works. It is still the most effective brand awareness channel.
TV advertising creates, builds and grows brands. TV advertising builds brand fame and keeps brands alive in your mind for much longer than a sponsored post or a search result.
Several recent reports confirm that nothing is more effective than television, in both short and long term strategies, and warn marketers against shifting money away from traditional mediums.
Earlier this year, Rich Lehrfeld, Senior VP, Global Brand Marketing and Communications at American Express was quoted in an AdAge article sharing similar views: “TV as a traditional medium is still important. When we run a heavy TV schedule, we see a lift in sales and product awareness. We need to run two weeks of digital to get the reach of one day of broadcast.”
TiVo Research found a direct correlation between a decrease in TV ad spend and a decrease in sales and a long-term research report from Accenture Strategy showed similar results; not only does advertising on multiplatform TV have a measurable, long-term impact on driving incremental sales, but also significantly enhances the impact of digital advertising.
Whilst TV has the highest efficiency at achieving KPI’s to drive sales, profit and increase market share; it works even better when combined with digital.
According to the most groundbreaking research for the ad industry to date from the Advertising Research Foundation where 5000 global campaigns and 12 years of data were studied; more platforms equal higher ROI, and it is the combination of TV and digital that’s the most powerful of them all with 60% greater ROI.
The other key finding of the study stresses that “marketers may be starving off growth by not investing enough in advertising as they shift the mix from traditional to new platforms.”
So if you are considering shifting more spend to digital next year, add back television. Advertising is more likely to be encoded in long-term memory if your audience encounters unified creative messaging in multiple media, especially when it is the media, that has the proven ability to emotionally and rationally connect with your audience through premium, high-quality audio visual content.