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Is TV Advertising Dead? Ad Revenues Suggest Otherwise

Ideally, advertisers experience the same brand recall from TV combined with the audience-based targeting advertisers use in digital. By combining the best qualities of television with the addressability of digital, advertisers could have targeted, dynamic video ads in TV-quality streaming environments.

Cord cutters are getting a lot of attention these days. Perhaps justified considering 95% of homes with TV have access to services that can be viewed on another screen, contributing to the lowest growth rate ever for worldwide pay TV subscribers. Globally, Asia-Pacific saw the biggest gains adding 2.4 million homes compared to the Americas which added 850,000 homes and EMEA adding 210,000 homes[1].

However, while eyeballs may be shifting, many advertisers report TV ads delivering better ROI than digital. Coca-Cola’s global chief marketing officer famously declared to conference attendees they see $2.13 returned for every dollar spent on TV compared to $1.25 for dollars spent on digital.

A recent study by Accenture found that marketers over-state ROI from digital at almost 18% when seen as a standalone channel by failing to track and measure the halo effect from multi-platform television. Conversely, multi-platform TV’s adjusted ROI is understated by 10% according to the study by being mistakenly credited to single channels which analyzed $12 billion in anonymized marketing spend. In addition, while ROI from search, display and short-form video is high at initial spend levels, returns diminish as spend increases.

This infographic on The Current State of TV Advertising illustrates key points on the importance of TV Advertising today:

TV Advertising Info graphic

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