Although Web-based and mobile phone advertising are on the rise, two leading US advertisers stressed that television is still a top choice as an advertising medium.
In a recent study, Microsoft Corp. and Omnicom Group, the world’s second largest advertising agency, stated that “there has never been a better time for TV advertising to seize the moment.” The study indicated that most consumers still consider TV to be a strong force as a medium and want advertisers to continue to produce great ads for it.
Microsoft, the world’s largest software producer, had an advertising expenditure of over $1.6 billion in 2011, and has set out to strike the right balance between traditional TV advertising and the newer media, such as smart phones, tablets, and computers. Many of Microsoft’s advertising executives felt strongly that their television ads have greatly contributed to the global brand name recognition that the company enjoys.
Although Web-based advertising is currently experiencing the fastest growth rate, television remains the most relevant in the minds of consumers. The television industry has done well to stay in the loop in developing fresh new ways for consumers to enjoy viewing.
TV remains by far the largest advertising medium, according to the survey’s report. For example, television advertising is forecast to comprise 42 percent of the $216 billion in 2013, an increase from 2005’s 37 percent.
TV advertising continues to grow despite the jump in advertising on the digital media. Even consumers who have embraced smart phones, tablets, and laptops still enjoy watching TV. Their love of gadgets has not resulted in a significant decrease in television viewing. Even some of digital advertising’s most fervent advocates are convinced of TV’s permanence as a key marketing channel.
A separate study indicated that television has a major impact on both consumers’ awareness of a product and their decision to purchase it. This is especially important considering current economic times, when most companies feel the need to maximize their advertising expenditures and to encourage customers to purchase their products.
According to the study, television had an 80 percent impact in making consumers aware of a new product or service and a 53 percent impact in leading the consumer to actually make a purchase.
Television is indeed a strong contributor in most categories of products and services for brand awareness as well as in purchasing decisions by the consumer.