Television advertising has been around since the early days of TV in the 1940s. Brands quickly realized the power of reaching mass audiences through this exciting new medium that was fast becoming a fixture in most homes.
But with advancing technology and changing viewer habits, the TV marketing landscape continues to evolve. Brands today need to be more creative than ever to effectively engage audiences on the big screen.
The rise of appointment viewing
In TV’s early years, markets were limited and consumers had fewer choices when it came to programming.
This meant brands could reach a large portion of their target market by advertising on popular shows that most people were watching live anyway.
But with the rise of cable, satellite, and now streaming services, appointment viewing has greatly diminished. Audiences are more fractured across endless options and less likely to sit through ads on shows they’re only moderately interested in.
According to Nielsen data, appointment viewing is declining across all age groups, with adults aged 18-34 experiencing the biggest drops.
In 2015, this key demographic engaged in appointment viewing just 36% of the time, down from 53% in 2012. That compares to a decline from 61% to 51% among viewers aged 35-49 over the same period.
The decreasing value of 30-second ads
Along with the shift away from appointment viewing, audience tolerance for advertising has also decreased in the era of Netflix, Hulu, and other ad-free streaming options.
Viewers have grown accustomed to watching what they want when they want without interruptions. This means the traditional 30-second TV commercial is becoming less and less effective.
Recent research revealed that 65% of viewers ignore ads while binge-watching shows.
And for ads they do pay attention to, the average viewer remembers only 2 out of 10 products a week later. New approaches are needed to break through the ad fatigue.
Brand storytelling takes center stage
Getting audiences engaged with more meaningful branded content is one strategy advertisers are embracing more.
Rather than constantly interrupting the viewer experience with superficial product shots, marketers are now attempting to organically weave brands into entertainment through storytelling.
A great example is how Netflix created an entire interactive episode for Black Mirror titled “Bandersnatch” in partnership with Choose Sugar-Free Gum.
Throughout the episode, the main character can be seen interacting with packets of Choose Gum containing special QR codes.
When viewers scan the codes, it takes them to an interactive website to uncover clues about the show’s different endings. This clever use of a brand in a storytelling context provided a deeper level of engagement.
Integrating products on screen
Placing real products strategically into shows has also grown in popularity as audiences crave more authenticity.
A 2022 study by full-service agency Wakefern Food found that 77% of viewers felt product placements make a show feel more realistic compared to overt advertisements.
Brands across categories have successfully incorporated natural product placements without seeming forced. For example, in Stranger Things, Coca-Cola recreated their vintage 1980s cans to appear on screen fitting the show’s setting.
Fashion and beauty products routinely show up in dialogue scenes where their context and purpose feel genuine.
When done strategically, this on-screen integration makes audiences more receptive compared to traditional ads.
Innovations in addressable TV
Television advertising continues to become more precision-targeted with the growth of connected technologies.
Addressable TV ads allow different households watching the same program to be served different ads targeted to their unique interests and attributes.
Brands can geo-target specific regions or tailor creative to various audience segments for a more relevant experience.
According to research firm eMarketer, 75% of US households will have the ability to receive addressable TV ads by 2025, up from 33% in 2018.
And spending on addressable TV ads is expected to grow 33% this year as the targeting capabilities expand.
This presents exciting opportunities for brands to zero in on their best customers rather than wasting spending on broad audiences unlikely to convert.
Leveraging the second screen
Television no longer has the undivided attention of viewers. The vast majority now have a phone, tablet, or laptop handy to scroll through while watching.
Savvy brands are learning to embrace this “second screen” as an engagement opportunity instead of seeing it as a distraction.
FedEx has run successful second-screen campaigns that continue the brand’s story across devices to drive awareness.
During an ice hockey championship, a FedEx ad showed a player being accidentally sent onto the wrong team’s bus by FedEx.
Viewers could then visit a custom FedEx microsite to track the character’s journey to get to the right game, blending TV storytelling with online interactivity.
Getting social on air
As TV and social media converge more, networks are also blending real-time audience participation with live shows through hashtags, votes, contests, and more.
Spanish language network Univision brought its popular reality show Sabado Gigante (“Giant Saturday”) to US audiences and integrated Twitter polls where viewers could weigh in on contestant performances. The winner was even able to read responses in real-time.
Other shows display a branded hashtag in the corner of the screen so viewers can add their commentary to the conversation on social channels alongside the broadcast. When audiences get involved rather than just passively watch, they form a deeper connection with the show and network.
Looking to the future
While cord-cutting poses a challenge for advertisers’ reliance on traditional TV viewership metrics, technology will open up new opportunities.
As smart TV adoption grows along with streaming services, data-driven, addressable advertising will become more robust in understanding audience behavior across devices. Shoppable Connected TV ads are also on the horizon, where viewers can order items from screens with their remotes.
As consumer fragmentation and ad fatigue intensify, the brands that will win are those that can pinpoint receptive audiences and provide value through entertainment vs disruption.
Rather than sticking to conventional wisdom on digital alone, smart marketers are finding innovative ways back to TV through ever-evolving formats built for today’s modern viewer.
The medium that was once declared dying continues to maintain unrivaled scale, just with a new set of rules for engaging audiences on the big screen.
