Lots of research and news about the effects of streaming on TV watching habits. Most recently, US streaming usage reached a new high in April, capturing more than 30% of total TV viewership. This time of split in viewership has a significant impact for advertisers. However, many marketers continue to focus on traditional TV and continue to increase their advertising spending from COVID-powered pullbacks in early 2020.
Despite the streaming boom, the rise of traditional television is still very strong. A real fact is that viewers still spend more time watching TV live than watching content via the internet. From that perspective, TV is a key channel for brand awareness, marketers ’top objectives for the coming year. This goal is reflected in the cost of TV advertising, with almost half of all advertising dollars going to television stations across the United States.
The importance of reaching the widest possible audience is not discounted, but it requires more planning and strategy than just limiting our media choices. SME Scarborough data shows that 47% of U.S. adults watch less or no TV (weekly cable, broadcast) although traditional TV is still the mainstay of the media. Light viewers also spend less time watching TV than conventional TVs, spending less than two hours a day. This segmentation of viewers’ time may present challenges, but when advertisers have a clear idea of how to use the channel, they are in a better position to balance their spending for optimal revenue.
Those who watch more television are more likely to come in contact with advertisements than those who do not watch more. However, since only 30% of Americans are able to watch TV for less than two hours a day, relying heavily on TV to reach and frequency strategies can be expensive and challenging. A typical three-month national TV broadcast will not resonate well with viewers who watch very few commercials. In a recent campaign, SME Media Impact found that light viewers didn’t even see the two ads. On the other hand, about 25 advertisements were shown to heavy TV viewers. When a campaign relies too heavily on a media, it can be difficult to control the amount of advertising the audience has.
It is possible that a brand can achieve its reach and goals through a narrow media mix. However, as listeners are flowing more and media behavior is changing, it is becoming increasingly important to have a diverse media mix. And many marketers are actively playing a leading role in engaging with audiences where they are spending more and more time, increasingly focusing on emerging digital channels such as social media and connected TV.
The SME 2022 Annual Marketing Report found that North American marketers spent more than half of their 2021 advertising budget on digital channels. They plan to continue increasing digital spending in the future. North American marketers plan to increase their spending on social media by 61%. This is despite the fact that they find it more effective than radio and TV (57% highly / very efficient vs. 49%, 41% and respectively)
Like any strategy and decision, data should be a marketer’s best guide. However, perception may not always be accurate. To better understand the effectiveness of different channels, we recently used SME Media Impact to measure the effectiveness of a single, মাসের 5 million automated campaign a month by adjusting a general media plan to include traditional radio without budget adjustment. SME Ad Intel has seen that automotive manufacturers spend 67% and 27% on TV and digital media, respectively.
Because 19 million people were more likely to be exposed, the optimized campaign increased the reach of the auto brand by 26%.
Marketers who want to maximize media plan optimization have always found it important to spend efficiently across all channels. It became more important as a piece of media device and channel. Marketers will be responsible for providing real income on the investment. This is the nature of marketing. But as customers ’time spread across new platforms and devices, effective marketing plans will be considered through the lens of the target audience, time spent, and messaging frequency.
