TV Advertising: Alive & Well

By Jessica Murphy in Direct Marketing on October 16th, 2013

Everyone seems to have an opinion on the current state of TV advertising. There have been rumors swirling around for the last couple of years that there will be a “death” of TV advertising. At the end of the day though, facts don’t lie. And the cold hard truth is that TV is still widely consumed and it doesn’t look like that will change anytime soon.


Nearly 63% of all advertising dollars being spent by major media buyers have gone towards TV advertising. Overall demand for television remains constant, with total TV ad dollars rising 6.5% during 2012. The demand for broadcast network television, in particular, is holding strong with ad spending rising 10% over 2011. TV is still highly influential and a favored medium among consumers. Below are some additional facts to take into account when planning your TV advertising strategy:
  • According to a recent Microsoft Advertising survey, multi-screen consumers are more open to advertising on TV than on computers, tablets, gaming consoles and mobile phones.


  • TV is rated as the most effective advertising channel by SMBs according to a 2012 Vocus survey.


  • According to a 2012 MarketShare study, TV is the dominant driver of word-of-mouth, both online and offline.
  But that's not all - there is more good news for TV: Nielsen data and Kantar Media figures indicate that certain audience segments are growing. The Spanish-language segment grew more than TV media overall (8.3% vs. 2.4%) in 2011. This continued into 2012 with Spanish-language TV seeing double-digit growth rates in each quarter. In fact, although Hispanics remember English language commercials as well, the same commercial shown in Spanish can bump up ad recall by as much as 30% according to Nielsen’s 2012 “State of the Hispanic Consumer.” There is also additional growth in automotive advertising. Kantar reports that the ten largest auto advertisers spent about $6.25 billion on all kinds of TV commercials in 2012. And PwC predicts continued solid growth for US TV ad spend,  each year growing from the last for a compound annual growth rate of 6.7% for 2012-2016! While it’s true that consumers are spending more time with multiple forms of media, especially digital, channels such as social media are actually boosting TV advertising efficiency, not contributing to the demise. TV is still the dominate channel for news and entertainment. The average time that Americans consume TV is still higher than online and mobile. Brands and marketers need to understand that TV advertising is still powerful. It’s not dying; it’s just evolving.  By gaining an understanding of TV's evolution and implementing an integrated marketing strategy, you will drive more value overall. Interested in learning more about our approach to TV advertising? Contact our experts today!