According to Campaign’s Danny Rogers (1), TV advertising is rising in terms of adspend. It’s
estimated that advertisers will spend 3% more on TV compared to last year. Considering
the emergence of digital media and all its possibilities, that we are said to live
in “The digital age” and the fact that it’s 2013 and the first TV ad ran in
1941, this direction does not instantly make sense.
Giving it a second thought and taking some
advertising research (there’s references at the end of this post if you’re interested
in knowing more) into consideration made me change my mind.
First of all, Byron Sharp (2) explains that good business depends on acquiring new
customers rather than convincing current customers to buy more. Research has
shown that a successful brand does not necessarily have frequently returning
customers; they simply have a higher number of customers (more on this later).
And here’s the thing: it is harder to effectively
reach new customers than existing ones. Frank Harrison (3)
explains how customers who are using a brand have a higher recall of the
brand’s advertising than consumers who use other brands within the same product
category. This goes for all types of media; paid, owned or earned. However,
recall amongst non-buyers is higher for paid media and TV advertising in
particular.
In other words, TV advertising should be
the most effective type of advertising for reaching new customers, so spending
a bit more money on TV doesn’t sound like such a bad idea.
1) http://www.campaignlive.co.uk/opinion/1214638/tv-booming-again-everything-changed/
3) Frank Harrison (2013) Digging Deeper
Down into the Empirical Generalization of Brand Recall: Adding Owned and Earned
Media to Paid-Media Touchpoints, Journal of Advertising Research, June 2013,
No.2, Vol. 53
Very interesting - and for an old skooler like me, something to be gleeful about. I tend to not be completely convinced on what seems to have been the drum that everyone wants to bang these days, that TV is just taking its last breaths before digital completely swallows it.
ReplyDeleteAnother interesting point you raised is reference 2, which also sort of goes against a lot of what for example our branding course leads us to believe (and what seems to be another popular band wagon that people are keen to jump on) - that a brand loved is a brand that lives long. Than again, quality over quantity in business and in customers in particular is a debate that could probably go on forever and ever. Which is more important; a brand with several one-off customers that keep increasing for that one-off purchase, or a fewer customers whose custom is reoccuring?
Very interesting Denise, and surprising given the popularity of streaming services. I am a total Netflix bum and haven't watched live TV at home for months. I am convinced this is the way TV is going and that TV advertising is on the way out - but so far there's no evidence to suggest I'm right! I give it 5 years before we see a significant impact on TV advertising.
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