TV (and Video) Advertising Is on the Upswing - Article Example

TV (and Video) Advertising Is On The Upswing Forbes - http www.forbes.com/sites/davidcooperstein 02/14/tv-and-video-advertising-is-on-the-upswing/ David Cooperstein – February 14, 2012 The article discusses the changes in TV viewer trends among consumers worldwide. Neither NBC’s “Must Watch TV” nor the Super Bowl have the same influence as they did in the past. They are no longer the most influential advertising TV spots among television programming viewers. The TV business is in the precipice of change.

Three ways in which the TV business is changing are: Consumers are multi-screen multi-tasking New sources of insight into popularity are popping up The dynamics of measurement are changing Data shows that 63% of generation X viewers uses a second screen device more than half the time they watch TV, and that number zooms to 74% for generation Y consumers (Cooperstein). Advertisers have to adjust their ad campaigns to catch the attention of viewers more than ever before. The biggest changes in television viewing are occurring among viewers below the age of 35.

Companies that measure social chatting associated with television viewing such as BlueFin Labs which tracks and measures online video ratings are on the rise among marketers and advertisers. Other companies that use to dominate the tracking of television viewing trends such as AC Nielsen are having problems adopting new methodologies for calculating ratings. The general perception of the marketing world is that the changes that are occurring in television advertising are good for the industry as a whole.

“There is a lot of positive anticipation that the changes in the TV landscape will prove beneficial to marketers of all stripes” (Cooperstein). Marketers now have more alternatives than in the past. Despite some of the controversy over set top box data marketers indicated that their confidence in Nielsen ratings is the same as last year. There is a lot of experimentation among advertisers with new video platforms. 66% of marketers in a 2012 study agreed that fewer commercials per ad pod are needed for advertisements to be more effective.

A new trend advertisers are focusing on is cross-channel audience measurement metrics. Two cross-channel audience metrics that advertisers are using to measure the effectiveness of their ads are Gross Rating Points and Target Rating Points. Television advertising during the 20th century was the premium form of advertising utilized by major firms in the United States and abroad. This form of advertising has often been used for product advertising. The premier event of the year in television which the top advertisers in the world targeted to introduce new products and improve the corporate image of the firm was the Super Bowl.

The Super Bowl has continued to be a big event in the 21st century, but the costs of Super ads have skyrocketed in the 21st century. The cost of Super Bowl ads in 2012 was $3.5 million for a 30 second advertisement (Izzo). In the new convergence age advertisers are looking for greater value. The logistics of television advertisements have changed a lot in the 21st century. The internet has created a new type of television viewer that prefers to watch television programming through online websites such as hulu.com. These websites provide advertisements, but they do not bombard the public with so many commercials.

Approximately 25% of the time spent watching traditional television programming is composed of advertisements. This has hurt the effectiveness of advertisements because people got tired of watching so many ads instead of actual programming. The changes in the TV advertising game are affecting the public relations of many stations. Some advertisers are questioning the effectiveness of the traditional rating systems used by stations to measure how many people are actually watching the programming.

Advertisers utilize television to communicate messages to the customers about their products. The changes that are occurring in the television industry are helping a lot of small businesses because alternative online television programming has cheaper advertising rates than regular television. New communication devices such as smartphones are a hot trend among younger television viewers due to their ability to connect viewers to the internet. Today advertisers are focusing more on integrated marketing communications.

The effects of the convergence age are going to be more pronounced in the future as more people gain access to the internet. Currently there are over two billion internet users worldwide (Plunkett Research). Television companies have to adapt to this trend in order to capitalize on this unique opportunity. NBC has already established a strong presence in this new age of television advertising through its release of the popular television programming website hulu.com. Work Cited Page Cooperstein, D.

14 February 2012. “TV (and Video) Advertising Is On The Upswing.” Forbes. 23 February 2012 Izzo, P. 4 February 2012. “Number of the Week: Super Bowl Ads Cost 3 Cents Per Viewer.” Wall Street Journal. 23 February 2012. Plunkett Research. 15 February 2012. “Introduction to the E-commerce & Internet Business.” 23 February 2012.