In case you have been in a coma for 30 years, digital advertising is kind of a big deal. Currently, internet advertising takes up approximately 54% percent of the market in Australia (Sydney Morning Herald). As digital advertising continues to grow, it’s easy to think that TV is receding back into its little cave where it will reside forever.
However, the stats tell a different story.
In the last 3 years, TV advertising spend has remained largely unchanged:
· In 2016, TV advertising spend was 3.7 billion - Statista
· In 2017, TV advertising spend was 3.77 billion - Sydney Morning Herald
· In 2018, TV advertising spend is predicted to be 3.76 billion - Sydney Morning Herald
In a world that is dominated by digital, TV is holding its own very well.
So, which mediums are losing steam?
We have all of these advertising mediums and digital keeps getting bigger and bigger slices of the pie. So, if TV isn’t budging, then who is losing out?
Well it isn’t radio. Radio advertising continues to stay strong amidst a world gone digital. Part of the reason that is so, is because radio has learned to adapt with the times by moving into podcasts and digital radio streams.
The real mediums that are on the decline are the print mediums, like newspapers and magazines (which were especially sharp in their declines).
The power of TV
It feels like TV just can’t be knocked down as it remains its stronghold over the media landscape. No matter what your opinions on TV as a medium, you have to respect its fortitude over the last 50 years.
Part of the reason why TV is still so strong is because it is the number one medium when it comes to influencing purchasing decisions. It creates, builds and grows brands and packs a punch that other mediums simply don’t.
Rich Lehrfeld, the senior VP of global brand marketing and communications at American Express quoted in an AdAge article, “TV as a traditional medium is still important. When we run a heavy TV schedule, we see a lift in sales and product awareness. We need to run two weeks of digital to get the reach of one day of broadcast.”
A report from Accenturefound a correlation between the decrease in TV ad spend and long term sales, which further confirms the ability of TV to convert people into customers.
TV is not an island
While TV continues to prove itself to be a powerful medium, it’s true strength comes from being combined with other mediums like digital. According to the Advertising Research Foundation, TV and digital is the most powerful combination, with 60% greater ROI on average.
The Future of TV
The reality is that we don’t know where TV will be in 5, 10 or 20 years from now. As technology exponentially improves and changes, so does the media landscape and we could see something completely different dominating the advertising world in no time at all.
But one thing is for sure. For now, TV is here to stay and still remains king.
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