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TV Advertising In Generation Netflix

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Posted by luke on

“YouTube is taking over.”

“People have Netflix now.”

“Seriously mate, TV is not gonna be around long.”

If I had a dollar of every time I heard one of these excuses, I would put it all towards creating a TV ad to dispel them…and it would work.

Some Myths Just Won’t Die

Marketing people love playing clairvoyant with anyone who will listen and their favourite prediction is claiming that TV will soon become (or in some cases already has become) irrelevant.

I’m not 100% sure where this myth came from. My best bet is that it’s just too irresistable of a prediction to make, especially since alternative media outlets like YouTube and Netflix are becoming more and more prevalent. It makes sense – people watch YouTube more, so they watch TV less, right?

The Stats Say Otherwise

According to a recent comScore report:

  • People watch on average five hours of live television for every hour that is viewed on streaming services.
  • Even people who heavily rely on streaming services for entertainment, they still watch on average twice as much live TV.
  • On top of this, only 15% percent of homes are streaming-only, which means that 85% of homes use streaming services to supplement their normal TV viewing.

According to a recent Nielsen report:

  • When compared with DVD/Blu Ray, the Internet, game consoles, apps, radio and multimedia devices combined, TV still has a higher viewing time per day.

According to a recent Thinkbox report:

  • 86% of video ad spend was on live television.
  • TV viewing hasn’t really changed even as social media and streaming services have been rising.

These stats suggest that TV is still in the power position that it has always been in, particularly when it comes to live TV.

What Makes TV So Special?

Today’s TV is arguably the best in history. An explosion of ‘nu media’ outlets has given true creativity a chance to be seen by the masses, as creators no longer need to get a green light from HBO or Comedy Central in order to make a show. They can go to smaller companies, or if they’re really determined, make it completely on their own and release it online. This has created more of a level playing field for artists, which doesn’t totally rely on the instincts of a handful of network executives.

Now, this isn’t to say that ‘trash TV’ reality shows aren’t abundant and that there isn’t a lot to be desired for segments of the television world (the endless repackaging of shows like Big Brother for example). However for all the crap that is on TV right now, there is also a plethora of quality shows like never before in history. The amount of times I hear “have you seen xyz show? It’s AMAZING!” per week is staggering and 90% of the time I’ve never even heard of the show. There is so much good TV today that it is physically impossible to keep up.

TV’s unparalleled quality is what keeps viewers tuning in week after week, which is perfect for advertisers.

But Do TV Ads Connect?

TV ads allow a level of connection with the viewer that is unmatchable by any other medium and this is due to the nature of TV advertising itself. Unlike mediums such as Print media, TV is able to tell a mini story (complete with moving images and sound).

Here is an interesting quote from FreeTV Australia:

“TV advertising works better than any other medium at influencing behaviour and driving purchasing decisions. According to Deloitte, television is by far the most influential form of advertising. 62 per cent of Australians say television has the greatest influence on their decision to purchase goods and services. “

So the short answer is…yes.

Where To From Here?

If there is anything to be gleaned from this information, it’s that you shouldn’t be afraid of using TV advertising today, as TV is still immensely powerful in terms of its reach and influence over customers. That’s not to say that someday this will change, but as things currently stand – not yet.

 

Topics: TV Television
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