What is the current state of TV advertising

Although the glory of linear TV is far gone, TV advertising isn’t going anywhere. The industry is moving from traditional pay TV to internet-delivered connected TV (CTV) programming. The transition is already happening, and as digital platforms continue to scale, advertisers can avail the benefits of CTV advertising over traditional TV, including better targeting and measurement options.

Before we move ahead, here are some statistics on TV advertising that you should know.

• Global TV ad spending is expected to reach $170 billion in 2023, accounting for about 19% of total ad spending.
• The United States is still the largest market for TV advertising, accounting for about 35% of global TV ad spending in 2023.
• Other prominent markets for TV advertising include China, India, Japan, the United Kingdom, and Germany.
• The growth of digital advertising is expected to continue to put pressure on TV advertising in 2023. However, TV advertising is still expected to remain a major force in the global advertising industry for the foreseeable future.

As per the latest reports, the breakdown of television ad revenue by region for 2023 is:

• North America: $85 billion

• Europe: $55 billion
• Asia Pacific: $40 billion
• Latin America: $11 billion
• Middle East and Africa: $6 billion

Looking at the statistics, we observe that TV is still an active medium for entertainment. Marketers must harness the power of TV ads and integrate the same in their marketing strategies.

Here are some reasons why TV ads should be part of your overall advertising strategy:

1. Television has the trust of the audience

Television has been entertaining people since time immemorial, and thus, it has the trust of the audience. As per a survey by Thinkbox in the UK, 45% of the respondents said that TV is the medium where they find ads they can trust. Only 5% stated that they trust social media ads. Given that, television has the potential to drive societal change.

2. TV has the highest impact

Television ads can address a wide range of audiences. Unlike the ads posted on social media that target only a specific group of audience, TV ads are for everyone. TV ads work for brands trying to target a broader audience that is otherwise unreachable through other platforms. The survey by Thinkbox also suggested that TV advertising effectively delivers in delivering the highest profit at the best efficiency and with minimum risk.

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3. Presents the strongest halo effect

The term ‘halo effect’ refers to the preference of a consumer for a line of products as they had favourable experiences with the same brand in the past. Against the other medium of advertising, TV ads create a halo effect that is better and more credible. It signals that marketers who include TV advertising in their marketing strategy shall see more return on investment.

4. Long-term performance

Finally, TV ads bring long-term profits and performance for a company. Other modes of ads may bring short-term gains but long-term gains keep the momentum maintained and help the company be in the business for a longer time.

Key Trends in TV Advertising in 2023 and Beyond

• The continued growth of CTV: CTV describes the devices connected to the internet and enables viewers to watch TV shows and movies on demand. CTV is growing and is expected to grow at a significant rate. CTV is expected to account for about 20% of TV ad spending in 2023.
• The increasing use of data-driven targeting: Data is the bedrock of advertising campaigns these days. Advertisers are increasingly harnessing the power of data to optimize their ad campaigns. It includes using data to target ads based on interests, demographics, and even the purchase behaviour of the user.
• The growth of short-form video ads: Short video ads, such as YouTube shorts and Instagram reels continue to grow. These short ads are more convincing, less intruding, and can be easily shared as a TV commercial.

Summing Up

As we navigate through the future of TV advertising, the same is poised to become more advanced and intuitive. It is set to leverage technologies like virtual and augmented reality to offer immersive experiences to the users. With the integration of AI and machine learning, advertisers can gain granular audience insights, enabling advertisers to deliver increasingly personalized content.

The future of TV ads will exist with other digital advertising channels. Cross-platform campaigns will become a norm, and TV ads will act as a catalyst that drives viewers to engage with brands on digital platforms and vice versa.

It is in your hands to unlock the power of TV advertising with advanced technologies to show ads to a specific group of audiences. As we look into the future, TV advertising is getting better.

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