Saturday, February 28, 2015

TV ad needs to wake up

As more and more people choose to stay in front of a computer instead of a television, advertisements on a television returns less value to companies than before. In the past, television was one of the best places companies put their advertisements on because most families were regularly watching televisions to spend their leisure time. However, nowadays, TV shows become available to people on Internet and are even more convenient for customers because they can watch whatever and whenever they want. Less and less people choose to spend time on television. As a result, television advertisement does not produce sufficient value for companies anymore.
Another reason why television advertisements do not have high efficiency is that when Internet ad industry was rapidly developing, television ad industry, as the best ad industry, did not think about innovation and kept their old fashion ways of doing advertisements. Obviously, old fashion advertisement ways were inefficient in terms of having accurate targets. As people know, when people surf on the Internet, browses would create cookies for each user and keep users’ records so that ad companies could utilize the cookies and send Internet users advertisements, which would have higher probability of influencing users. This way is much better than the old fashion television way of doing advertisements.
In order to change the situation, television ad pricing model should be adjusted go beyond the ratings, and stickiness, that TV networks currently measure, and beyond the easy-to-measure data that Facebook collects. The TV industry will need to invest in the type of creative evaluation testing that big marketers use to test their ads, or at the very least, it should review these scores from a third party, like Millward Brown for example, in order to provide a discount to ads that score well.


Source: http://adage.com/article/digitalnext/wake-call-facebook-tv-ad-pricing-change/297348/

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