TV alive and kicking as tech giants pour money in advertising

TELEVISION IS STILL WORTH THE AD SPEND

Despite the fact that there is a rumour that television is dying, Google, Amazon and Netflix spent more than RM1 billion on television advertising in 2017.

So one can conclude tv isn’t dying, at least not yet. In October 2017, Google spend $17m more on TV than Target and Walmart combined.

Television is in fact very much alive with studies showing that Americans at least spend 4.5 hours watching television a day.

That’s more than four times the amount of time spent watching YouTube, Twitch, Netflix, Hulu and Amazon.

The question is why do tech giants spend so much on TV when it has become so hard for brands to reach large portions of their audience with traditional advertising methods.

Because they know it works. Digital-native companies are hyper-focused on being able to prove their return on ad spend (ROAS).

This knowledge helps them determine which channels to invest in, where to allocate resources, and how to optimize future campaigns. Until recently, digital was the only channel that offered this level of measurement.

Today television platforms have measurement capabilities that allow brands to know exactly who saw their ad and what action they took as a result.

The learnings derived from this data, as well as those from subsequent campaigns, can be applied to make TV advertising more efficient than ever.

One example of a giant that has worked this method successfully is Procter & Gamble which took $200 million out of digital advertising and put it into television. This led to them increasing their reach by 10%.


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