What Is Television Advertising? Benefit, Types, 15+ Facts

For decades, televisions have been a mainstay in the ordinary household. People utilize them for entertainment, news, and even education.

However, another common application of television is advertising. Advertisers have utilized television ads to promote their goods and services to customers for decades.

The purpose of these advertisements is to encourage viewers to purchase the product or service being advertised.

This is television advertising, and it is a crucial component of the marketing mix for many businesses.

What Is Television Advertising?

Television advertising is the practice of making and broadcasting ads on television to market a product or service.

Advertising on television is one of the most prevalent and successful methods of reaching people. This is due to the fact that it delivers a broad reach, frequency, and effect.

Despite the fact that OTTs and digital content are increasingly fighting for attention with the TV sector, televisions continue to be the dominate advertising medium.

What Is Television Advertising?

In reality, the average person watches around four hours of television every day. This affords advertisers several possibilities to expose their message to potential buyers.

How TV Advertising Works

The purpose of television advertising is to disrupt the programme that people are attempting to watch.

Multiple advertisements are often broadcast throughout a single episode of a television program, which makes them highly obtrusive.

This may appear to be a disadvantage for television viewers, but it’s also one of the factors that helps television networks generate revenue.

There are several methods for creating a television commercial. Advertisers have the option of creating their own advertisements or collaborating with an advertising agency and production company to build the creative.

Once the advertisement has been developed, it must be scheduled on a television station. Typically, this is done via an advertising agency or media purchasing organization.

Depending on the time of day, the day of the week, the length of the ad, the show’s rating, and the channel on which it airs, the cost of broadcasting a commercial on television can vary significantly.

Characteristics Of Television Advertising

Advertisements on television frequently exhibit some or all of the following characteristics:

  • Commercials on television are supposed to be entertaining and memorable in order to stay in the memory of the viewer.
  • Advertisements on television rely on numerous senses to engage viewers: sight, sound, and movement. This is why they frequently incorporate music, images, and special effects.
  • Every TV commercial is developed with a specific marketing purpose in mind, such as increasing brand recognition or generating sales.
  • They provide a message in a short amount of time: Television ads only have a few seconds to communicate their message. As a result, they ensure that their message is conveyed efficiently and fast.

Types Of TV Advertising

There are several types of television advertising, including:

  • TVCs are the most prevalent sort of television advertisement. Typically, they range from 15 to 60 seconds in length and air during commercial breaks.
  • Product placement is the conspicuous display of a product or service in a television program or film. This can be done naturally as part of the plot (for example, a character using an iPhone) or explicitly, such as when a product is displayed in close-up or is utilized in a pivotal scene.
  • Brand integration is when a brand is woven into the fabric of a television show. That instance, when the whole plot focuses on a single brand or features its product as a prize (e.g. Fear Factor where contestants win a Ford truck).
  • Infomercials are extended commercials that often show late at night or on the weekend. Typically, they endure at least 30 minutes and feature a call to action, such as a phone number or website address.
  • During a television program, overlays are brief, 10-second advertisements that display at the bottom of the screen. Typically, they are utilized to promote forthcoming programs or items at live events.

What Is Television Advertising?

Examples Of Television Advertising

Traditional commercials and contemporary product placement are two of the various types of television advertising. Examples of television advertising:

Traditional Commercial Examples

Old Spice: The Man Your Man Could Smell Like

Old Spice is a well-known men’s grooming brand recognized for its hilarious advertisements. The firm has developed several notable television commercials, such as “The Man Your Man Could Smell Like.”

This advertisement portrays a man who is self-assured, handsome, and successful. He is seen riding a horse and playing basketball, among other activities designed to appeal to guys.

The slogan at the conclusion of the advertisement is “Old Spice. The man whose odor your boyfriend could resemble.”

Nike: Just Do It

Famous for its inspiring advertisements, Nike is a well-known sporting apparel brand. To promote their slogan “Just Do It,” the firm aired an ad depicting an 80-year-old guy describing how he runs 17 miles every morning.

Product Placement Examples

McDonald’s: Rick and Morty

Rick and Morty is an adult cartoon program that has several commercial placements for fast food restaurants. McDonald’s was one of the brands featured on the program, and the placement did generate considerable buzz.

Brand Integration Examples

Chevrolet: Transformers

Chevrolet was one of the brands included in the Transformers movies, which are notorious for their product placement. The company’s automobiles were heavily featured in the film and even played a key role in the storyline.

Advantages Of Television Advertising

Television advertising has benefits over other forms of advertising. Here are a selection:

Television reaches a huge audience efficiently and swiftly. This makes it excellent for advertising seeking to reach the greatest number of individuals feasible.

Television is one type of advertising media that does not require its audience to be literate. It may be consumed by individuals of various ages and levels of reading.

Thanks to its use of sight, sound, and action, television advertising is extremely persuasive.

Oftentimes, television advertisements rely on emotions to drive home their message. This may be accomplished using music, pictures, or even narratives.

Surveys, brand awareness studies, and sales data can be used to assess the effectiveness of television advertising. This lets advertisers assess the effectiveness of their advertising.

Commercials on television are intended to capture the viewer’s attention and hold it for the duration of the ad. This is achieved by the use of imaginative imagery, music, and special effects.

Other marketing platforms, such as web commercials, are viewed as less reliable than television advertising. This is because TV advertising inherit the viewers’ confidence in the channel.

Important Medium For Establishing Brand Personality: Television is an essential medium for developing brand personality because it enables advertisers to demonstrate to their audience what the brand is all about, rather than simply explain it.

What Is Television Advertising?

Disadvantages Of Television Advertising

Marketers should also be mindful of the downsides of television advertising.

Television advertising is one of the most expensive advertising mediums accessible. This is because producing a high-quality ad and airing it on television is quite expensive.

The advertising on television reaches a huge audience, but it is not extremely targeted. This implies that advertisers will pay to reach those who are uninterested in their goods.

Due to the restricted time available for television ads, there is only so much that can be accomplished artistically. This may be a hurdle for advertising seeking to distinguish themselves from the competition.

The one-way nature of television advertising implies that it is not highly participatory. This might make it challenging to engage the audience and motivate them to act.

Effectiveness Requires Repetition: Television advertisements are not particularly effective until they are repeated several times. This may be time-consuming and costly for advertising.

Once a television advertisement has been made, it is both costly and time-consuming to make alterations. Therefore, advertisers must be confident in their creative prior to airing.

In recent years, the popularity of television has fallen as an increasing number of individuals have cut the cord. This indicates that fewer individuals are accessible to see television advertisements.

Future Of TV Advertising

Both televisions and television advertising are becoming more sophisticated. Advertisers now use data to more precisely target and customize their advertising for each viewer. In the future, we may anticipate more relevant, targeted, and interactive television advertisements.

Nevertheless, traditional TVCs are losing ground versus mobile advertising. The expansion of digital video platforms such as YouTube and Netflix has made it simpler for consumers to watch what they want, whenever they want. This indicates that television advertising is no longer the sole option to reach people via video.

Nevertheless, television advertising is a vital component of the marketing mix, and it’s not going anywhere anytime soon.

Timing Is (Almost) Everything

In 2020, the typical American spent 3.05 hours per day watching television, according to the Bureau of Labor Statistics. This is up slightly from 2.74 in 2019. 2

Obviously, advertisers no longer have a one-in-three chance of grabbing the attention of each of these viewers, as they did when only three big networks dominated the airways.

There are potentially 10,000 channels available to cable-connected viewers now, including paid channels that are commercial-free.

In the United States, television advertising typically yields the greatest return on investment of all advertising mediums. 3 Each station has restrictions on the duration and subject matter of advertisements it can broadcast.

During a morning children’s program, for instance, there will be no alcohol advertisements. However, digital marketing based on user algorithms is far more exact than television advertising.

Effective TV Advertising

For firms with a restricted advertising budget, it is essential to show the advertisement at the optimal time and price. A good advertising campaign is the product of several accurate decisions, such as the frequency with which the ad is aired, the number of people who view the ad each time it airs, and the amount of interaction the ad generates.

For instance, a growing number of TV marketers are resorting to second-screen advertising. The objective of these advertisements is to attract viewers to their mobile devices (those “second screens”) so they may interact with the company’s website during the live broadcast.

In order to advertise their products to certain audiences, brands and media firms also attempt to match the viewers’ demographics, such as age and gender, to each broadcast. The overall cost of running an advertisement depends on the popularity of the show and the number of times the advertiser agrees to air the advertisement.

Due to its status as one of the most-watched annual events in the United States, the Super Bowl often has the most expensive advertisements. In 2022, an average 30-second Super Bowl advertisement will cost advertisers around $6.5 million.

Despite the move to online programming and streaming services like as Netflix Inc. (NFLX) and Hulu, advertising during live event programs such as the Super Bowl, the Olympics, or Saturday Night Live’s 40th-anniversary special remains lucrative.

If people want to watch a show in real time, advertising space is in high demand. Primetime used to refer to the times of day when viewing was at its highest, but binge-watching, DVRs, and streaming have modified this definition.

Upfronts and Sweeps

Those who have read about the television industry are certainly aware of the upfront season. In the spring, advertisers may purchase television commercial airtime (and internet commercials) months before the start of the autumn season.

What Is Television Advertising?

The first upfront presentation took place in 1962, and each year since then, the main networks have presented their future programs in an effort to secure advertising space.

There are also TV “sweeps” periods, which occur at specified times of the year when shows feature special guests or must-see events (such as Cam and Mitchell’s wedding on Modern Family or the death of a significant character on The Good Wife).

In turn, Nielsen Holdings N.V. (NLSN) statistics and ratings from that time frame are used to establish advertising prices for local stations.

The Cost and Pricing of TV Ads

Advertisers and networks have utilized Nielsen ratings and the price measure CPM for a number of years (or cost-per-thousand, a barometer of the cost of reaching 1,000 viewers). As technology affects how and when people watch television programming, the importance of this metric is decreasing.

Advertisers can cease relying on the precise time a show airs if they concentrate on targeting extremely specific categories of people. Rather than presuming that a certain time period is a golden ticket, the focus should be on identifying the ideal audience.

According to Variety, networks such as NBC, ABC, Fox, CBS, and CW are projected to have earned between $8 billion and $10 billion in advertising income for primetime viewership in 2021 and 2022.

The major targets for decades were programs that aired between 8 p.m. and 11 p.m. It’s still a desirable time period, but the transition to digital is making it less so.

Going Digital

With the introduction of DVRs, TiVo, on-demand, and streaming services, the advertising model for television has evolved over time. Millions of consumers skip ads and binge-watch their favorite programs with few or no commercial interruptions.

Total television advertising expenditures in the U.S. decreased by 4 percent in 2021, from $63.4 billion in 2020 to $60.57 billion.

Impact of Digital

It might be difficult to ascertain how much ad income has shifted from primetime networks to digital and streaming services, which are becoming increasingly popular.

In addition, the COVID-19 epidemic and its lingering consequences compelled networks to alter their programming schedules, which negatively impacted ad income in those years. For instance, the 2020 Summer Olympics in Tokyo have been moved to 2021.

Unquestionably, the proliferation of ad-supported streaming platforms provides advertisers with more opportunities to invest their money, hence increasing competition for primetime networks. Peacock, Hulu, Paramount Plus, and HBO Max are included in these streaming services.

On-Demand and Streaming

Netflix is an industry leader in on-demand streaming services that include TV episodes, movies, and original content. Depending on the bundle, zero ads are available for a monthly cost. Amazon Prime Video is a fast expanding streaming service for Amazon Prime members.

In fact, during the last quarter of 2021, Amazon Prime was the fastest-growing streaming service in the United Kingdom.

Hulu, which is owned by Disney, is the third largest on-demand streaming service, delivering TV series, movies, on-demand viewing, and live television. The strength of the Marvel and Star Wars brands will help Disney+ surpass 100 million users by 2021.

Since many streaming services, such as Netflix, do not rely on advertising revenue, firms and conventional networks are seeking new and improved methods to reach their target audiences.

Nevertheless, a few of the networks are owned by multimedia behemoths that also provide streaming services.

For example, Disney owns the ABC network, thus it generates money from its streaming services like Hulu, its movie business, and the advertising revenue generated by ABC’s primetime network.

If both networks are controlled by the same media conglomerate, it is not always evident how the shift of ad income from primetime networks harms the networks as a result of media sector consolidation.

However, it is certain that premium memberships will enable customers to view without advertisements, and streaming companies have already begun to adopt this approach (YouTube Premium).

4 Reasons Why Television Marketing Still Works for Audience Engagement

1. Television Ads Can Now Be Targeted More Effectively

Cable television has spawned a vast selection of channels that cater to a variety of distinct demographics.

TV advertisements are no longer need to air during large events such as the Super Bowl in order to be effective, since they may now be positioned and scheduled to reach a smaller, more focused audience.

One of the primary reasons why marketers chose the web as an alternative platform is the ability to target their video advertisements.

Local digital periodicals can run advertisements geared at local customers, whilst specialty websites can run lucrative ad campaigns that capitalize on the higher audience interaction on these sites.

Combining the broad reach of television with the targeted reach of websites often results in more efficient marketing.

2. Television Is an Unmatched Medium for Demonstration

Text and static visuals can be used to create effective and memorable advertisements, but there is just no substitute for television when it comes to showcasing a product. When viewers or website visitors see a new automobile in action or a product being shown, they are more engaged.

What Is Television Advertising?

Whether it’s painting a space or preparing a gourmet meal, people want to see for themselves how things are done. When advertisements depict items in use, advertisers take advantage of this curiosity.

3. TV Is Still Considered the Gold Standard for Marketing

According to a survey conducted by Adobe on internet advertising, thirty percent of U.S. consumers view online advertising as less effective than traditional advertising.

Despite the fact that marketing experts are more confident in internet commercials than consumers, more money is spent on television ads than on web ads.

This is anticipated to continue for the foreseeable future, with online advertising surpassing television advertising no earlier than 2018 or later.

The remarkable reach of television advertisements, its continuous usefulness to advertisers, and the channel-specific predictability of television viewers are factors that maintain television advertising dominating.

4. Television Prompts People to Action

The previous year, a poll conducted by Deloitte in the United Kingdom revealed that ten percent of respondents went online for items after viewing a television sponsorship or advertisement.

This tendency was much more prominent among younger TV watchers, with 24 percent of 16- to 24-year-olds seeking out things seen on television.

Moreover, television programs and ads were the third most common reason people gave for impulse purchases (coming in behind recommendations by friends or family, and seeing an item in a store).

In contrast, seeing ads in mobile apps only persuaded 2% to take action, and seeing a product referred to on Twitter only drove 1% to seek out that product.

The influence of television advertising on the public remains substantial. It attracts a vast audience that, on average, watches four hours of television every day.

People spend three minutes on YouTube and two minutes on Facebook for every hour spent watching television, despite the fact that the internet world has been mainstream for over a decade.

Marketers are realizing that cross-pollination between the web and television worlds might aid them in developing more successful advertising strategies.

Therefore, if you wish to market your website or generate ad income on your website, you would be sensible to examine the realm of television advertising.

What Does Digital Media Offer That TV Advertising Does Not?

Digital media provide far more precise targeting characteristics than television advertising. Due to the algorithmic nature of online identification, businesses are able to target clients more precisely, and as a consequence, their advertisements may generate more sales.

When consumers could only watch media on a single device, TV advertising was more effective, but as mobile phones, laptops, tablets, and smart TVs have become more prevalent, conventional TV advertising is finding it difficult to compete.

How Effective Is Advertising on TV?

There is a reason why you are constantly bombarded with advertisements whenever you watch your favorite television programs.

What Is Television Advertising?

Amazingly, television advertising is still quite effective. If it did not, the world’s leading brands would not continue to allocate such a significant portion of their marketing spending on television.

This invites the question: Are the world’s largest businesses able to advertise on television because they are enormous, or because they advertise on television?

Very interesting mental experiment! As with any marketing channel, funding is required to begin started. But despite its undeniable usefulness, television is frequently misused. Let’s analyze why it works so well.

The Case for Connected TV Advertising

“Connected TV is the next major digital channel, and it will be the largest digital advertising channel in history.”

Mark Douglas, MNTN’s president and chief executive officer

By advertising on Connected TV, marketers have access to a new channel that has a significant influence on consumers. In a sense, advertisers benefit from the fact that viewers are abandoning cable television.

By adopting Connected TV, viewers enter an environment that offers targeted advertising and quantifiable performance data.

77% Of Viewers Who Primarily Watch Connected TV Cut the Cord Due to Cost

Oversized cable subscriptions packed with channels no one sees are on their way out. Viewers are shifting to inexpensive, ad-supported streaming, which allows them greater flexibility over when and what they view, in order to save money on material they never consume.

Connected TV Represents Incremental Growth

Viewers who use ad-supported content watch more than four hours less traditional television each week than the typical viewer. Add to that the tens of millions of cord-cutters, and you have a unique opportunity to reach people you would not otherwise be able to.

TV Advertising: Get Started Today

Connected TV advertising offers several advantages. Adoption rates for streaming television are through the ceiling, targeting and analytics enable businesses to generate substantial performance, and the advertising channel is still in its infancy.

Conclusion

Television advertising is not as lucrative as it once was, but it may still be profitable. While big programs such as the Super Bowl continue to be profitable, advertisers are competing with DVRs, on-demand, and streaming services for viewers and the advertising money that follow them.

Advertisers will continue to explore for methods to reach younger consumers, who are increasingly viewing entertainment online or on their mobile devices instead of on television.

TV advertising produces billions of dollars in income for the networks, so traditions such as the upfronts and sweeps weeks remain significant.

Due to industry consolidation, many of the major media companies have fingers in both pies, digital and broadcasting.

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