Today more and more viewers have turned to streaming platforms instead of traditional television.
According to Vincent Letang (2019) “So-called linear TV viewership has been declining by 10% in the U.S., Australia and China for a few years. European TV channels suffered drops of 7% to 8% among viewers age 18 to 49, worse than the 5% decline last year”.
Many studies also come to this conclusion, which showed us that the entire digital advertising market in the US in 2018 was larger than the corresponding television market. However, by 2022 mobile is expected to surpass television advertising by a significant margin (more than 23.1%), and the difference in allocation of budget between the two media will grow substantially.
This fact comes as a shock to the TV industry as it reduces the revenue from TV commercials.
Advertisers following this trend of the time, leave the traditional television and turn to digital advertising. Digital advertising provides them with capabilities, which they cannot found in the traditional, such as creating targeted ads, targeted audiences and targeted statistics and real-time database analytics that can help optimize the advertising.
For example, technology companies give digital advertisers the upper hand, allowing them to target people who have searched for a product on Google, liked a Facebook page, or searched for something on Amazon.
Of course, when we talk about digital advertising today, social media play a leading role, as it is the cheapest form of advertising channel.
For a small business, online advertising is a one-way street, as it cannot afford the television advertising. Nevertheless, this is not an actual problem, since the ROI can, through Google ads, fully meet its goal and collect a large number of metrics and analyzes to judge the effect of the money invested in their advertising.
Tv is still alive
However, TV advertising is still one of the most effective methods, bringing the highest return on investment (ROI) and is considered a useful tool when marketers need to reach a large, vibrant audience. It still plays a leading role in advertising methods. But as we live in the “Netflix era”, how much longer will that be valid? Will tv industry be able to find something stronger to fight with digital?