TVCM vs. Online Ad

TVCM vs. Online Ad

Adidas CEO, Kasper Rorsted recently said the company is leaving behind TV advertising as it seeks to quadruple its e-commerce revenues by 2020. He also said "It's clear that the younger consumer engages with us predominately over the mobile device. Digital engagement is key for us; you don't see any TV advertising anymore."

While Adidas has moved away from TVCM and is focusing on digital marketing, other companies recently raised questions about the quality of online advertising. Mark Pritchard, the CMO of P&G, requested the digital advertisement industry to improve the effectiveness, measurement, reliability and quality of digital advertisements.  He said he will no longer invest in digital advertisements that do not meet P&G's standards.

According to a survey conducted by Ebiquity at the request of UK TV marketing industry in 2014, TVCM was the best contributor to earnings. Of course, this is just one survey.

Coca-Cola’s CMO, Marcos de Quinto also seems to think opposite to Adidas. He said that investing in TVCM is extremely important in terms of brand and sales contribution rather than investing in digital advertising.

I think they all three are right. It’s clear that the trend of digital marketing has been stronger globally.  At the same time, the effectiveness/ the level of development varied from company to company/ industry to industry. Also, the quality of digital advertisement is a mixture of wheat and chaff, which means we can differentiate ourselves from others.