How Long Until TV Is De-throned?

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Posted by luke on

We’ve been hearing for years that TV advertising is on its way out. For quite some time, TV advertising has remained in the top spot for global ad spend, and 2016 marks the first year that there is expected to be a decrease for the first time ever in a non-recession economy.

According to a study by Magna Global, it was found that digital advertising revenue will beat out TV by 2017 globally, and by 2016 in the US alone. This will be an enormous milestone for global advertising as we know it.

Why is this the case?

One reason why we are seeing this shift is because of the semi-recent trend of what’s known as ‘Cord Cutting’. People are moving from Pay-TV and cable companies to streaming services such as Netflix and Stan. According to research Firm SNL Kagan, Q2 of 2015 marked the biggest loss in subscribers in the last 5 years for pay-TV companies.

Another big reason is simply due to price. To put it simply, digital ads tend to be much cheaper than TV. As more and more people move over to digital channels, we see less and less money going into TV and more going into digital.

The ever-growing sophistication of digital advertising methods is also a big factor. Digital marketers are constantly developing ways to deliver more engaging, personalised and targeted messages to consumers in ways that TV just can’t compete with.

So, Is TV a Lost Cause?

Not really. Just because it is no longer going to be number one anymore, doesn’t mean that it isn’t still a viable way to market to customers.

TV has proven again and again that it is the most powerful medium for influencing purchaser decisions, absolutely creaming the competitors.

But only time can tell.

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Topics: TV Television

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