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Future of TV advertising | KnowledgeisKey

Summary

In this article we will attempt to make an educated guess on what could be in store for future TV advertising. To make a prediction of how TV advertising will develop in the future we must first look at the state of TV advertising now.

By, Gavin Whale | Date: 10/06/2017 | Updated: 02/07/17

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Fun Facts:

On average each person will spend around 10 years of their life watching TV. In 2015, 95% of UK homes had a working TV set.

young boy watching tv

In this article we will attempt to make an educated guess on what could be in store for future TV advertising. A key element of future TV advertising has been identified as "second screen branding" as it offers a more interactive way to advertise as it offers a more personalised experience. Second screen branding being advertisers using TV, mobile phones and tablets at the same time to target their audience. Online TV, streaming, catch up services and social media have changed the way in which adverts are viewed by many. In the future it can be expected that a strong bond between this type of advertising and TV advertising to help create more effective advertising campaigns.

Current State of TV Advertising

curved tv

To make a prediction of how TV advertising will develop in the future we must first look at the state of TV advertising now. Television advertising is currently at a stage of technological advancement, as the world becomes more digitally integrated, making advertising in alternative ways easier. This means that there is less emphasis on the success of TV advertising campaigns (Lotz, 2007). It has already been shown TV advertising is an important part of an organisations marketing and will continue to be as long as large amounts of people continue to be exposed to television adverts. However in recent times the exposure of TV adverts has begun to decrease, as there are more ways of avoiding adverts.

Brand building has become a more important aim of TV advertising, there is a huge focus over a company’s perceived image and how it is shown via the adverts. This is because people become more aware of their own expectations on how a business should perform (Schatte, 2010). For example branding to Apple is of the highest priority, to achieve through TV advertising Apple have always been seen to use a consistent professional style in their adverts, this builds and strengthens their image which is of quality and innovation, such adverts help to complement each other (Apple, 2012).

Product placement is currently being used frequently throughout many different TV programmes; it has been identified as an effective way for organisations to ensure that their products are being exposed to the customers without the need to pay vast sums of money for big advertising campaigns (Hardy, 2010). It also offers the chance for customers to see the product in its natural environment and being used by people they are greatly influenced by.

Satellite, cable and Freeview services like Sky and Virgin media offer the customer chance to record their favourite shows this means they can pause fast forward and rewind what they watch, services like sky plus also allow people the chance to do this with live TV. Catch up TV and anytime offered by these companies all make it possible to skip advertisements all together (Gerbarg, 2009). The importance of an advert being both eye catching and interesting is increasing due to the having limited time to captivate viewers attention, this means that making a TV advert is potentially more expensive as more has to be spent on writers and special effects (CNBC, 2012).

Some businesses are now using other cheaper forms of advertising, as the cost of advertising on TV is significant; most of these cheaper alternatives involve the internet. A few examples of these would be social media advertising. Advertising on catch up TV or before an internet video or inside a video game are also examples of this. A good example of social media advertising is the use of a Facebook page where organisations can create a page for their business and control the content on the page for free then pay a small fee to Facebook to appear in the newsfeed of users globally (Evans, 2010). This gives organisations the ability to contact potential customers through social media, which is quickly becoming more frequently used in day to day life; Facebook in fact has over 1 billion active users a month (Kiss, 2012). This represents a huge amount of potential customers that can be reached for a relatively small cost; this means businesses have to rely much less on TV advertising when reaching a majority of their market as it is not the only way to inform a mass market.

The amount of money that businesses are spending on marketing has been falling in recent years. This is shown by Marketing Week (2012) who say ‘the likelihood is that marketing spend in 2012 will have fallen for a fifth successive year’. This could be a result of cheaper methods of advertising being used, leading to some organisations choosing other forms of advertising over the traditional TV advert. This now means that any given company does not have to rely on one form of advertising. More and more organisations are making the most of cheaper ways to reach their target market effectively (Sweeny, 2012).

More households have cable, satellite or Freeview, this means modern TV advertising can be targeted to specific individuals as they use a wider range of channels containing much more specific content than the standard five channels that people had access to in the past, for example the channel ‘Dave’ is targeted at males so advertisements on that channel are targeted generally at men. This means the market is more targeted so it is a more efficient way of TV advertising and should yield greater return (Gerbarg, 2009). This could explain how money spent on TV advertising is falling, it is just because TV advertisers are targeting specific channels, adverts on these channels tend to reach smaller audiences, in doing this they are more efficient (Sweeny, 2012).

The nature modern day TV advertising is prompting advertisers to think more carefully about their advertising campaigns rather than just spending large amounts of money on reaching a large mass market audience. Advertisers are more likely to consider cheaper alternatives or advertise on TV less frequently. When advertising less frequently companies need to ensure that any TV advertisements are complemented with social media and/or other internet activities (Evans, 2010). For example compare the market.com launched their compare the meerkat.com TV ad campaign. To complement this they created a website under the name compare the meerkat.com with games and novelty web links. They created this knowing they would spark the curiosity of viewers and that they would try to access the website, this meant less money had to be spent on the use of TV advertising to achieve the desired effect (Gerbarg, 2009) (Compare the market.com, 2012). This example can also be applied to the fact that advertisers are making their advertisements more entertaining to ensure people want to watch them (CNBC, 2012). So modern day TV advertising needs to be more entertaining and efficient than in the past.

The Future of TV Advertising?

smart phone hologram

Television advertising is inevitably going to continue to change and evolve, as it has done since its existence. There has been recent shift towards people using the internet and mobile devices a lot more and it is becoming very apparent that TV advertising is adapting and developing to prosper and make the most of these changes (O'Guinn, Allen, & Semenik, 2008, p. 512). TV advertisements are developing, it cannot be predicted what exactly will happen far into the future as technology is always changing and the way people respond to technology advancements is unpredictable, but we can make an educated guess based on the technologies currently available what will happen in the near future.

Mobile TV is soon predicted to trend (O'Guinn, Allen, & Semenik, 2008), especially with the dawn of technology like 4G mobile phone signals, which are soon expected to be in every main city in the UK, making internet speeds on mobile devices even faster. With this in mind advertisers will become willing to spend more and more on digital advertising and Mobile TV advertising. It is predicted that by 2013 spending on Mobile TV advertising will be more than $2.5bn, in 2008 spending was $335m (Snoddy, 2008). This demonstrates a development in TV advertising and gives a rough idea that advertising activities like the ones mentioned above will be even more prominent in the future. This year it is predicted that revenue from TV and printed advertisements combined is to fall by more than £350m, it is predicted within the same year there will be a boom in digital advertising (Sweeny, 2012). This indicates that the future of TV advertising could see a huge drop in revenue as digital advertising grows (Gerbarg, 2009). It is plausible that at some point within the future TV advertising will be worth much less as people move away from the constraints of live TV and just simply use the internet (Lotz, 2007). However presently TV advertising is the largest form of advertisement and it will remain strong for at least the next 5 years (Deloitte, 2011). Future developments in TV advertising are likely to appear as more people move away from traditional and current TV viewing (Gerbarg, 2009).

The way people watch TV is changing in many different ways, in America 3/5 of adults browse the internet whilst watching TV and this has created a new tactic for TV adverting by marketers. It is called Second Screen Branding; this is a form of marketing which encourages the viewers to research further using the internet whilst watching TV. 27% of people in America view content on the internet related to what they are watching on TV at that time. So in the future TV advertising will be more successful if it reacts and works in a way to appeal to these sorts of customers, Second Screen Branding will almost certainly become a future development in TV advertising (Boris, 2012 ). For the near future at least, large companies will continue to use TV advertising as it is still means of reaching the largest audiences and it will continue to do so for the next few years at least.

All trends seem to suggest that businesses are slowly moving away from TV advertising and using a wide range of techniques to target customers. New techniques are constantly being created by the advancement of technology. For example social networking sites are great places for companies to gain publicity and advertise products/services which a few years ago would’ve been unheard of (Evans, 2010). Even the worlds created in video games are becoming places for companies to promote themselves using product placement and sometimes even having virtual billboards and posters within games (Hoyer & MacInnis, 2008, pp. 69-70).

To conclude the possible near future developments of advertising on TV are that, companies will have to consider whether to also advertise on Mobile TV, all adverts will have to aim to become entertaining so that people will want to watch them and even better ‘trend’ so that one TV advertisement could impact social networking sites. Adverts will have to consider the fact a large proportion of people viewing them are also browsing the internet so create curiosity to make viewers want to research into their product or service, this is where second screen branding will come into play. TV advertising will move towards the internet as internet usage grows. The reason a TV advertisement needs to be entertaining is that it will then be talked about, spark curiosity and encourage further research into the brand, for this to be done it is wise for a company to also featuring on the internet as it encourages personal learning around a product (Boris, 2012 ) (CNBC, 2012) (Lotz, 2007).

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