IMF Business School · Masters in Marketing and Digital Communication Become a professional with the best school to study digital marketing in person or online ACL Direct Promo · We know about Relationship Marketing We are experts in loyalty and incentives · We like to create unique experiences Not so many years ago, money flowed to television. Martinique Email List TV was the queen of ad spend, the one that took the highest numbers and the one that received those million dollar ads that become headline material. Brands paid very high figures to be the content that the consumer received in the ad break. The television pull had clear reasons. The medium was the only one that managed to gather very high audiences and the one that achieved a more transversal pull.
The television networks reached all over the world and they did it quite successfully. Even when the Internet had already appeared and when it began to move large numbers of audiences, advertisers continued to allocate large amounts of their budgets to television advertising, possibly due to a kind of inertia. It was what had always been done and what worked (or so they kept thinking). But things have changed. There are still events and programs with a high pull that achieve a high advertising investment, true. This is, for example, the case of the Super Bowl in the United States, which has closed the most expensive commercials in the world in recent years. In Spain, the pull of being the last or the first advertisement of the year still continues to be driven by advertising investment, since that is also still a time when there is a large audience sitting in front of the television.
In spite of all this, and nevertheless, the televisions are in a moment of crisis. They are in terms of audiences – despite the mirage of peak hours of content consumption that were recorded during the first months of the coronavirus pandemic – and they are in relation to advertisers. The growth of the internet The pull of the internet and the growing power of streaming have led audiences to migrate to new content and also for brands to show more interest in it. If to this is added that television has not undergone a complete digital transformation and that audiences continue to be measured as in the past, as well as the traditional way of niche segmentation, the situation is understood in a better way. Advertisers have begun their migration to greener pastures and television has begun to feel the threat of the crisis. All this is causing the advertising investment in television to fall and the medium to lose in the distribution of the advertising cake. In recent times certain borders have already been crossed and investment in digital has outpaced that of television.
Likewise, the traditional advertising format of TV has been put into question: the ads have become obsolete and no longer serve to meet the expectations of consumers in these times. Therefore, while the digital environment rises and gains investment in advertising, television ads fall and the industry loses advertising investment. But how many millions is television going to lose in the next few years? TV losses In the absence of a recent global estimate of how much money television will lose in advertising revenue,
the latest US study can serve as a sample to follow market trends and to visualize where things are going with this medium and environment. The estimates of Moffett Nathanson Research indicate that TV advertising will continue to reduce its weight in the distribution of the market in the coming years, before the push of digital advertising and expansion of the advertising market. This last point is interesting because, based on what the study indicates, it could not be concluded that television simply loses because the network wins. The situation is more complex and the effects are not limited to direct competition. Television loses because its advertisers are still large companies, which are cutting advertising investment.
The coronavirus crisis has been an extra blow for this environment, since one of the key advertisers of television such as retail is cutting advertising investment (and the same could be said of airlines / tourism and the automotive industry). Faced with this, the digital environment has managed to attract SMEs as advertisers. Since ad spend can be much lower, small businesses can become advertisers. Thus, forecasts suggest that by 2023 the digital market will earn 94,000 million dollars, while television will lose 5,000 million in advertising investment and the remaining traditional media collectively 14,000 million.