TV advertising is not going anywhere, just evolving. It’s always been about getting consumers to act, and incorporating the use of today’s smartphone applications is the newest way to bring more
impact to your TV commercials.
According to a study done by the Consumer Electronics Association (CEA), in 2010, 33% of U.S. households owned a smartphone. With that number estimated to skyrocket to 45% by 2012, advertisers are already starting to adopt the use of mobile applications in their TV campaigns.
Brands like Tide® and Old Navy® have recently integrated the music identification application, Shazam® into current TV commercials. It’s simple too, no typing in long URLs or performing lengthy Google searches. The commercials feature songs, so all the consumer has to do is open up the Shazam® application and let it identify the song playing in the ad. From there they will have options to go straight to that brand’s website, purchase product, etc. With the Old Navy® ad you even have the option to buy the outfit the person is wearing in the ad!
This new trend will not only make TV ads more interactive for consumers, but allow advertisers to more accurately measure the performance of the ads while tracking TV conversions.
Integrating mobile apps into your TV advertisements works well all around – the consumer gets to interact with the ad while the advertisers are able to more easily direct traffic to brands’ websites. Shazam® is just the beginning; as this advertising tactic grows, the variety of applications available for integration will most likely grow as well.
80% of TV Viewing is still in Standard Definition.
Although 56% of homes in the U.S. now have a HDTV, only 20% of TV viewing is being done in high definition, according to the Nielsen Company.
Few Ads are in HD.
TV networks may be moving quickly on developing HD programming, but advertisers are far behind. A new study from Extreme Reach, says just 13% of all TV commercials that ran in 2010 were produced in high definition.
People do more than watch TV while watching TV.
A study of over 8,000 people from Nielsen and Yahoo recently discovered that 86% of mobile Internet users play around on their devices (smartphones, iPads, etc.) while watching the tube. It seems that Googling random facts, checking their Facebook news feed and checking their Twitter account were atop the list of activities to do while watching TV. A bit of good news for advertisers: 20% confessed to search for more information about a commercial they recently saw.
In an industry that’s driving money into social media and other communication platforms Joel Ewanick, the head of marketing for General Motors, believes some of the best campaigns still begin with Television.
“I love television,” he said. “(Some) people say television is dead, it is not dead. It drives a lot of traffic.”
In July, approximately two months after Ewanick joined GM, the company aired its first Chevy Corvette TV commercial in five years. The spot, titled “Still Building Rockets,” contrasts NASA scientists developing and launching space rockets with a Corvette being built and burning rubber on a test track.
According to Ewanick, Chevrolet will unveil a Silverado pickup TV campaign in October, which features the good-natured teasing that occurs when Silverado owners visit with owners of other brands. Additionally, GM will be returning to run Super Bowl advertising in February.
Ewanick believes TV remains a key medium for selling and driving traffic to dealer websites. According to Automotive News, Ewanick – who spent about the past three years as Hyundai Motor America’s marketing chief – said he likes the current Hyundai “Uncensored” campaign. In it, Hyundai test drivers give straightforward opinions about how they feel behind the wheel of the vehicles.
“That campaign began on TV then moved to Facebook and other social media sites to continue a lively dialogue for Hyundai owners and others,” Ewanick said.
That’s a good model for how a campaign can launch on TV and expand into other media, he added.
After 27 years in the advertising business, I have been exposed to all kinds of propaganda, and I’m sure I have been guilty of propagating some myself. But, I have always tried to base mine on logic. So when I hear the social media people tell me that television is fast becoming a thing of the past, I must question the logic in which they base this claim.
Are they unaware that in 2009 the average American home had 2.86 TV sets; 18% higher than 2000 and 40% higher than in 1990?
Or that Americans spent over 36 hours a week watching TV last year compared to 4-hours a week using the Internet?
Perhaps they also forgot that 35% of all advertising dollars will be directed to TV advertising in 2010.
Even if they were aware of these facts, I’m sure it remains a mystery to them “why” television remains so popular.
So, let me clear up this mystery as succinctly as possible. Consumers continue to purchase TV sets, at a record pace, because they simply enjoy watching what’s on them. It’s passive entertainment. It requires them to do absolutely nothing, but switch it on. A comforting concept in today’s overly active world.
TV receives 35 cents of every ad dollar spent because it works for its advertisers. Despite the debate over Push vs. Pull marketing; there’s apparently more than enough consumers who are still happy to be “pushed” into stores all across America.
While building online communities, cultivating dialog and adding twitter followers may eventually pay dividends.
TV pays those dividends NOW.
And from a retailer’s standpoint, coming off the worst recession in 70 years, I can’t think of a better reason “why.”
A new report by research Horowitz Associates, that surveyed 800 nationwide multichannel TV customers, reveals that only 2% (or two hours per month) of all TV viewing in the U.S. comes from non-traditional TV devices. That means that the majority of people still prefer watching their favorite
programs the good old fashion way.
According to Horowitz, the 2% represents two hours of the 130.2 overall hours that U.S. TV viewers watch in a month.
But when consumers do watch online, the #1 device for non-traditional TV viewing is the laptop. The top video viewing websites are:
YouTube
ABC.com
Hulu.com
NBC.com
The top types of programs watched on alternative video platforms are:
scripted dramas 24%
news programming 14%
comedy shows 13%
sports 13%
sitcoms 11%
Horowitz says that of those surveyed, over one-third (36%) wish all their favorite shows were available online; another 30% wish all TV shows were available on handheld devices.
A smaller number of TV viewers (7%) said that if all or most TV programs were available on their computer, they would get rid of their TV service.
The majority, however, still prefer traditional TV viewing. Eight in 10 (79%) say they prefer to watch TV shows on a TV versus a computer or handheld device.
Even with 86% of all movie goers venturing online everyday, most first learn of new movies the old-fashioned way: TV Commercials and in-theater trailers. No, not banner ads, not YouTube, not even Twitter polled higher than television.
Out of 3,850 movie goers who were surveyed – 73% said that they first gain awareness of new releases from TV commercials, followed by 70% from in-theater trailers.
Word-of-mouth followed at 46%, and the Internet at 44%.
What makes these numbers even more interesting is that 73% of the movie goers surveyed use social networking sites.
Good news for the much maligned TV industry and not so good news for those who would have us believe that the Internet and social media are just a tweet away from replacing traditional advertising.
The latest Three Screen Report from Nielsen finds there is again another jump in viewing done over the Internet. And to the surprise of some, traditional television viewing also continues to grow. However, the report notes a slight decrease for watching video on mobile devices.
“Although we have seen the computer and mobile phone screens taking on a significant role, their emergence has not been at the cost of TV viewership,” Nielsen’s Jim O’Hara commented. “The entire media universe is expanding so consumers are choosing to add elements to their media experience, rather than to replace them.”
In the second quarter of 2009, the monthly time spent watching TV in the home by each user reached 141 hours and 3 minutes, up from 139:00 a year ago.
People who watch video on the Internet averaged 3 hours and 11 minutes compared to 2:02 last year.
However, the monthly time spent watching video on mobile phones was actually lower than a year ago … down from 3 hours and 37 minutes to 3:15.
Is it any surprise that major retailers still turn to traditional TV to reach the masses? People spend more time with television in just two days than they spend all month long watching video on the Internet and mobile phones combined.
And when it comes to critical mass, TV continues to lead the way in a big way. While Internet and mobile viewing are showing growth over previous years, numbers that do so are still relatively small, especially for mobile viewing.
Nielsen finds that 284.4 million Americans watched some TV in their homes during the second quarter. Less than half of them (about 134 million) watched some video on the Internet, while only 15.3 million watched video on mobile phones.
All too often I’m asked the question from retailers on where they should be investing their ad dollars: TV or the Internet. Folks this is not zero sum proposition. If you’re not doing both – then you’re missing the boat.
The formula for success is relatively simple, in my opinion:
Use TV advertising to engage, entice and persuade consumers to get more information about your product or service from your website.
Once on your site, inform, educate and sell them on doing business with your company – either online or in person.
Of course, if you’re product requires little explanation … then it’s plausible that prospects can and will respond to your TV offer with little need for a website visit. But, don’t fool yourself, if you’re anything less than a household name (i.e. McDonald’s or Coke), potential customers will most likely want to check you out on the web before walking through your door. And they better like what they see – within 5 seconds or they’ll exit your website immediately.
Believe it or not, even in the midst of today’s Internet explosion, there are still some retailers that don’t get it. I recently had a furniture store chain client whose only web presence was a simple splash page that included nothing more than store hours and addresses. The client did not have a website. And the really sad part – there was no hurry to get one.
The client’s explanation defied logic. There was concern that people would judge the client by the website and then decide not to shop at the stores. No amount of pleading and prodding could convince the client to look at both the storefronts and website as one in the same.
Your company’s website should be a reflection of the experience customers get when they shop your stores. It should be intuitive, interactive and INTERESTING. That’s the point my dear furniture retailer did not understand.
A ton of TV spots won’t help if consumers become disenchanted when they land on your website.
Despite the naysayers, people are still influenced by what they see on TV, but today they require more than just a 30-second commercial to help close the deal. Make sure you’re giving it to them with an easy-to-navigate website that is more than an online company brochure.
For the first time, the effectiveness of using TV and online advertising in tandem has been examined in depth. A pioneering new study conducted by Q Media Research in the UK has shown that using TV and online together is significantly more effective for advertisers than using either in isolation.
The study concluded that using the two media together does provide a very powerful combination across the whole process … from telling consumers about a brand they never heard of before … to helping them decide on which brands are more relevant to them.
Although it’s not always the case, the relationship does tend to flow from TV to online with TV sparking initial interest, awareness and “talkability” about a brand. With online providing consumers with the additional information they need to aid in decision making and purchase.
This particular combination is very powerful in raising purchase consideration with retail TV advertising generally starting the process and online completing it.
Other key findings from the study include:
Using TV advertising and online together results in 47% more positive feelings about a brand than using either in isolation.
The likelihood of buying or using a product increases by more than 50% when TV and online are used together.
48% of the sample group of 3,000 respondents watched TV while online, most days. Going online was second only to eating for activities that people do while the TV is on.
The findings reinforce the need to ensure creative synergy between TV and online advertising:
TV and Online campaigns need to have a consistent theme/message.
The strength of each media needs to be maximized (TV for excitement and impact. Online for interaction and personalized engagement).
There needs to be a high level of visual synergy between the two mediums.
Rather than use online as a reach medium, it should be used to target those who have already seen the TV advertising as a way of extending the campaign message.
Guy Phillipson, CEO of the Internet Advertising Bureau, had this to say:
“This important study delivers clear evidence of just how powerful and effective the TV and online combination is. In all the categories we tested, the results were very positive for both ‘soft’ brand measures and ‘hard’ purchase intent scores.”
After reading about The Gap’s new online advertising campaign, I was left yearning for the days where retail advertising had a more concrete purpose – like maybe selling something.
I thought agencies were about developing engaging strategies to increase sales and market share. And I thought those who were responsible for such strategies had some accountability when it came to delivering results.
If the new Gap strategy is any indication – my thinking may have been wrong.
The new ad campaign from The Gap, titled “Born to Fit,” includes no TV commercials instead, for the first time in the retailer’s history, The TV budget has been replaced with Web and Social Media – more specifically Facebook. Print, cinema and outdoor ads have been developed to drive consumers to the campaign’s Facebook page.
Always open to new ideas … I eagerly logged onto The Gap’s Facebook page. After a few seconds, I clicked onto the video section, expecting to hear why people like wearing Gap jeans. Instead I was treated to a short video from seven so-called celebrity “icons” – each one yammering on and on about the complexities of their “intriguing” lives.
As they speak, each “icon” (and I use this world loosely) is sitting on a stool against a white background while the camera – occasionally – pans down to the Gap jeans they are wearing. By the time I watched all of them, I wasn’t sure if The Gap wanted me to buy a pair of jeans or question my place in the universe.
Julie Channing, senior account director with The Gap’s digital agency explains the strategy this way, “We were really looking to reach out to fashionistas and influence audiences to start a conversation about how Gap has built this line of denim from the ground up.”
Really? So, consumers are going to visit a Facebook page and soon after begin conversing with friends and family about the development of a new brand of blue jeans?
Channing goes on to say, The Gap had set no numerical benchmarks to determine success in the campaign, but rather would look at “how much consumers interact with the brand” to gauge ROI.
So, let me make sure I understand this – The Gap’s ROI objective is to count how many people are talking about jeans, not how many are buying them.
Don’t you just love how some companies are using social media?
TV advertising is not going anywhere, just evolving. It’s always been about getting consumers to act, and incorporating the use of today’s smartphone applications is the newest way to bring more
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TV Is Not Dead 
