With the global rise of the Internet, new gaming consoles, iPods, and other content and technology, there's been a lot of media hype that television might not be the juggernaut it once was. And, for those who do watch television, more and more seem to be using DVRs, such as TiVo, and video-on-demand from their cable providers to skip or avoid commercials during the time they do spend in front of the television. Is TV advertising heading towards extinction?
Actually, it's just the opposite. The amount of television Americans are viewing is on the rise, and American households spend an average of eight hours a day in front of the TV, making it the most popular medium for information and entertainment. Less than 12% of American households currently own a digital video recorder and less than 4% of all TV viewing in the US today is recorded on DVR programs or on-demand viewing. For those that do use DVRs, studies have shown that skipping commercials (or "zapping") does not decrease brand awareness. And DVR owners actually watch more television thanks to the ability to record and watch programs that play against each other.
But don't just take our word for it. For Proctor and Gamble, a company with television advertising of close to 2 billion dollars annually, television is still at the top of the plan. Says A.G. Lafley, the Chairman of Proctor & Gamble, "Frankly, it's where we continue to invest," emphasizing, "It's incredibly effective."
Andy Jung, Senior Director of advertising for Kellogg Co. agrees, "Cable [television] is one of the most flexible and valuable media in which to work because there are so many different options and so many different ways and permutations that programming can become popular." He goes on to state, "We find a whole level of engagement with cable that you don't get in other places."
Why is TV advertising so powerful? Television merges video and audio to grab people's attention in a way that is impossible through other advertising mediums like print, radio, or even the Internet. Television delivers your message in a way that your customers will remember. It can also provide an aura of credibility as well as validation and prominence for the companies and products that use it. In this era of multiple media choices, TV remains the number one advertising medium, unmatched for building brand awareness, preference, and sales.
Sources:
Leichtman Research Group, 2006
Mediamark Research, Spring 2006
"Pausing The Panic: DVRs Were Expected to Turn TV Upside Down, But We've Stayed Tuned" Washington Post, August 20, 2006
"What We Want" Cable 2006 Supplement, Advertising Age, April 24, 2006
