The Future of TV Advertising
Advertising is facing the dawn of a new era: We are seeing an increase in online ads proliferation and more and more of the marketing budget allocation. New advertising heavyweights have sprung up, while long-established stakeholders are losing importance. This transition is structural and appears to be ongoing. The key question is not whether advertising will change, but how radically it will.
Well, it feels like Television is finally on its way out, and television advertising alongside it. Or so they say.
Let’s think, about it. With social media ads, TV networks have never faced more
competition for advertising spend. Meanwhile, subscription services like Netflix have proven that ad-free TV can be a super profitable model.
So, is TV Advertising Dead?
A PwC report projected Nigeria’s total advertising revenue at $483 million (N193 billion) in 2020, with the internet accounting for 20.5% of the total. The study revealed that although television advertisement will remain the ad leader in Nigeria by 2023, internet advertisement will outperform TV ads in terms of net additions (Nairametrics, 2021).
In 2020, $275 million was spent on traditional television advertising in Nigeria, a decrease of around $26 million compared to 2019. The majority of the money was spent on digital terrestrial advertisement at around $191 million (Statista, 2021).
The Statista Advertising and Media Outlook estimates that the money spent on traditional television advertising in Nigeria will continue to increase and reach around $323 million in 2025.
Also, the Nigerian government is anticipating significant growth in its media and TV production sectors as a result of the shift to digital TV.
Conclusion? No, TV advertising isn’t dead. It only becomes digital and gets larger with the addition of OTT. This shift opens a new world of advertising opportunities to Innovative Marketers.
In fact, according to one panel of experts, we are just now entering the “Golden Age of TV Marketing”.
The Future of Reaching Audience
The future of reaching audiences will be about adaptation as the TV family grows broader. Being strategic and using precise measurements to gauge their
achievements will underpin agencies’ success in reaching audiences.
The business that we drive is all based on the measurement of everything that is done. It won’t be about reach or frequency anymore, but will now be about finding the audience in the right moment within their customer journey.
Measurement: The Selling Point
As streaming and other kinds of digital video have become more widely available, the pace of change in the TV industry has accelerated, and brands and agencies should ensure that their media plans are based on the most up-to-date information. It comes down to understanding the tools available and, of course, which ones will fit your business.
The future of advertising lies in technology that leads to high customer
engagement with precision targeting. They include videos with storytelling, augmented reality and virtual technology with personal targeting that will help customers stay engaged with advertising content and provide a high return of the ad spend.