Is Television Advertising Worth It Anymore?

watching TV Is Television Advertising Worth It Anymore?

There are so many forms of advertising to choose from that sometimes it can be a bit overwhelming to decide what’s best for you. 

Ad campaigns are expensive, so being critical of which channel you choose is essential, especially for those with a limited budget.

This post will explore the facts behind the television industry and measure whether it’s worth investing in TV advertising today. 

Do People Still Watch TV?

According to recent statistics, the number of traditional TV consumers rose from 5.36 to 5.41 billion over a year from 2021 to 2022 and is projected to reach 5.69 billion by 2027. So there’s definitely still a potential market out there. 

Despite the rise in consumption of new-age forms of media, such as streaming platforms, Disney Plus, and Netflix, to name a few, people still tune in and watch traditional television. 

That being said, in a recent 2018 Nielsen study, interesting insights showed that 9% of participants were reported to “always” simultaneously watch TV while using another device, and a significant 36% were reported to do so “very often.” 

With that study being run five years ago, it’s safe to say that social media use has risen since then, with 70% reporting an increase in usage compared to the previous year in 2020 alone. 

Why is this important? It’s significant because doom scrolling has already directly affected attention span, meaning the watchers of TV today aren’t paying as much attention as the TV watchers of, say, ten years ago

If people are paying less attention to the very shows they’re tuning into, who’s to say they’re even the slightest bit attentive to the ad breaks splitting up these same shows?

The Business Behind Advertising On TV Channels

As the saying goes, money makes the world go round – the same can be said for television channels. 

Other than some premium channels that people pay a subscription to be accessible, such as Comedy Central and Sky Movies, most money for most TV channels results from product placements generated by advertising

Placements regarding these TV ad spots aren’t cheap, either. If we compare the average 30-second ad spot to, say, a sports channel with more significant reach, like a super bowl ad, we can see that each cost isn’t equal. 

There’s no real answer to how much a TV ad spot costs, as it can range from a few thousand to millions. That’s not even factoring in the overall expenses behind producing the ad. 

According to a 2022 report, 22.72% of global advertising spending went towards TV. This, however, does range from country to country, with North America having spent $64,663 million in 2021, compared to the Middle East & North Africa, which only spent $2,258 million in the same year. 

Where you choose to invest your advertising will determine how effective the campaign will be in the long run, so consider this when weighing out your options prior that you may choose wisely. 

TV Ads And Return On Investment

Whether or not it’s worth investing in TV ads depends on a few factors. 

According to research, it requires ten views to be memorable and up to 20 views to convert a viewer. 

If you’re a start-up or even a scale-up, you may not have the initial budget to air your ad that many times, let alone the budget for the frequency required to achieve these numbers. So make sure it’s feasible for you to do in the first place. 

However, if you do have the budget, a TV ad’s average ROI is around 300-500%, according to Linkedin. Good to know that there is, in fact, a return if you have the means to put your money where your mouth is. 

The Targeted Audience And The Likelihood Of Conversion

Another thing to consider is the target audience you’re trying to reach. 

Is your target audience even at home watching TV? If you’re a corporate company targeting people for the latest accounting software, for instance, you should reconsider whether you’d even benefit from advertising on Television.  

If you’re selling a children’s toy, you’d be wise to advertise this on CITV, Cartoon Network, or Nickelodeon; if you’re promoting a betting company, place the ad in between the halftime ad break of a football match to market to the beer drinkers. 

In a nutshell, where you choose to channel your efforts matter (no pun intended). 

And with all that being considered, there’s still a likelihood that your TV ad will not be as effective, considering people’s attention spans may still prevent them from converting. 

Investing in an online campaign may be more beneficial and cost-effective, but that’s really up to you. 

You should weigh your options before doubling down on one form, as TV advertising isn’t as it was a decade ago. 

Are TV Ads Worth It In 2023?

In conclusion, TV ads in the modern day can be worth it if you’ve got the right budget for a solid production, a product that can be advertised to a relevant audience, and a solid slogan.

If you’re tight on money and just starting out, it may be beyond your means, and you may be better off proceeding with another advertising method. 

That being said, there is a benefit to advertising with TV ads when you’ve got the right campaign; it’s just not for everyone!