Is The Economy Hurting TV Advertising?

Recently, Quaintise was given the wonderful opportunity to use the full extent of our resources in creating a television commercial for one of our healthcare clients. It was a remarkable marketing strategy that is currently reaping some magnificent benefits for the client. And it got us thinking, with the downtick in our U.S. economy, should clients be second-guessing their decision to use their marketing budget for television advertising? We know the answer to this question, so let’s dive in.

 

Bad Economy Good for TV

They have always said that when the economy starts to take a dive, movies, tv, and alcohol sales and advertising go on the rise. Consumers want to escape from the struggles of daily life, and whether it’s by going out to the movies or having a glass of wine in front of the TV, media conglomerates such as Viacom, NBCUniversal and Time Warner “have not seen any deterioration” in their “current market conditions,” according to the New York Times.

 

Despite worries of a possible double-dip recession, so far companies are not pulling back from their television ad spending plans, demonstrating the resiliency of the medium even when faced with a downturn and the persistent threat of the Internet to steal viewers. – The New York Times

 

What does this say about ‘old school advertising?’ Not too long ago we posted an article reflecting on the importance of understanding your audience and understanding where that audience gets its media fix from. Radio, considered a dead form of advertising, is still very effective for many industries. According to the NYTImes article, television is a tried and true medium for advertisers, remaining at or near historical highs in the United States.

 

Understanding Your TV Audience

In its first 2011 survey of television viewing habits, Nielsen estimates that over the course of the last month 288 million Americans were in a room where the TV set was on for at least a minute, 190 million used a computer at home or at work, and 231 million used a smart phone or other mobile digital device.

 

Choosing to spend a portion of your marketing budget on TV advertising depends a great deal on whether your audience is not only watching television, but actively engaged in what they’re seeing. If you’re in the industry of personal technology or pharmaceuticals, TV advertising is a money machine. These sectors, according to the NYTImes article, retain the most effectiveness when it comes to TV commercials. The automotive and financial services industries are also seeing an increase in responses to their TV advertising.

 

If you have a supreme understanding of your audience, you can pinpoint the exact time of day, the exact shows, and the exact campaign that will influence your audience enough to use your services or purchase your product. For example, if your target audience is over 50, TV demographics show that the best shows to advertise during would be Dancing with the Stars and NCIS. If your target audience is in the 18 to 34 age range, consider time-slots during American Idol and The Office.

 

If television advertising is something that you believe you have the budget and audience for, come talk to us.