Traditional media advertising has thrived very well for a very long time using a simple premise. If the advertiser puts its name (and products) in front of the target audience, enough times, it will sell the product. This type of mass-market approach is also referred to by media people as branding. Network television advertising, in particular, has built a multi-billion dollar business by showing branding ads to millions of viewers with the hope that alone will lead to increased sales for that product. In 2019 it is estimated that the Network upfront ad sales for the 2019-20 TV season totaled $10.8 billion, up from $10.1 billion the year prior.1 Without the benefit of click-throughs, view throughs, conversions, or any of the other gold-standard metrics of the online advertising world, life seems good in the land of TV brand advertising.
But Hold that TV Remote! Television network advertising executives have been worried for the last several years that the use of digital channels is creating rating havoc. The loss of eyeballs to online channels is causing the erosion of numbers will eventually punch holes in their bottom lines. They have every reason, in fact, (billions of them) to be concerned. The fact is that television is having a harder time actually reaching some of the audiences responsible for its revenue success. Advertising revenue tends to follow eyeballs. In fact as reported by eMarketer, US Digital Ad Spending Will Surpass Traditional in 2019
In fact advertising legend David Ogilvy’s Commandment #1 states “Your role is to sell, don’t let anything distract you from the sole purpose of advertising