November 17, 2020

What Is The Future Of TV Ads?

With customer attention spread so thin and cable tv subscriptions consistently falling, (over 16 million in the last five years) it can be easy to wonder what the future of advertising for linear tv will be.

Audiences today expect personalized and relevant targeted ads. Linear TV (cable and network television) often fall far behind in targeting capabilities. Therefore, it can be a challenge for advertisers to figure out how to integrate linear TV into their campaigns. What are some solutions advertisers have found?

One that stays constant, even in the midst of challenging circumstances such as a pandemic, is that people consumer media. We always seek out entertainment and information. Content consumption is at an all-time high and therefore, competition for viewer’s attention is as well. 84% of marketers say that it is getting harder to grab a consumer’s attention with television advertising alone. Most advertisers surveyed say that TV ads isn’t the first thing that they plan anymore, instead starting with digital and then working in TV. It’s becoming more and more important to prioritize other channels. Many marketers are using CTV (connected TV) or OTT (over-the-top) channels to target consumers using streaming services and connected TV devices such as Hulu and Roku. Advertises are embracing these platforms as more and more ad space becomes available. Spending for CTV advertising is expected to grow from $6.94 billion in 2019 to $8.88 billion in 2020, a 28% increase.

Advertiser will spend an estimated $8.88 billion on CTV in 2020

Another new TV advertising channel is programmatic. Although quite new, it’s becoming more possible to use Nielsen-based user-level data (age, demographic, income) or media-level targeting (show, daypart, network) to inform programmatic style ad spend for traditional linear TV. 20% of advertisers surveyed said that they planned to incorporate programmatic linear into their marketing plans this year, and another 20% said that while they aren’t incorporating it this year, they plan to in the near future.

How will TV advertising change in the future? It’s possible that as CTV and OTT take over the traditional TV space household level targeting such as IP address and Neilson style demographics will become the identification of choice for marketers looking to incorporate TV into their omnichannel campaigns.  

Using new tools and integrating in traditional ones, marketers will be able to effectively use TV in their campaigns on into the future.

About Skyler Schreck

Skyler is a Marketing Assistant at First Direct. Prior to First Direct, she worked as a graphic designer. Content creator by day and content consumer by night, Skyler's hobbies include reading, snacking, and binge-watching all available shows.