Monday, May 15, 2017

Tug of War Between TV and Digital Advertising Platforms

"Upfront season" begins this week, as ad buyers are meeting with TV networks and will begin purchasing ad space for the fall TV season. Despite the growing emphasis on digital marketing based on the significant increase in consumption and viewing of content through non-TV channels, ad buyers are expected to spend about $9 billion on TV advertisements this season, which does not mark a sizable decrease from recent years. This article presents reasons why traditional TV advertising has maintained its dominance. It highlights the wide audience that television still reaches, the limited inventory available, and the reliability/safety of advertising through traditional mediums (appealing to advertisers after the poor publicity that has afflicted YouTube and Facebook in recent months as advertisements were displayed next to content promoting terrorism-related activities).

However, the article also emphasizes that the success of TV advertising may not be sustainable as demographics change. Younger audiences are more likely to consume entertainment through digital platforms and prefer to view network television shows through platforms where they don't need to view traditional commercials. Moreover, the increasing sophistication of targeting and segmenting which digital advertising and platforms offer provide value that marketers are likely to rely on more in the coming years.

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