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Featured Television Advertising Campaign

Television Advertising

With the advent of the TV, advertising experienced a major development from the audio commercials on radio to TV commercials. Through time, TV commercials have become an important part of people’s lives. TV ads and ad slogans have become part of our culture as jokes, memories, and reference points for the products we buy — and as case studies for students studying how to become better advertisers and marketers. From this point of view, TV ads build upon a long and vast history and remain a major competitor for all the other forms of advertising.

TV Ad Effectiveness

Until the advent of the Internet, TV ads were deemed as the most effective form of advertising. Since watching TV holds such an important place in people’s leisure time all across the globe, a TV ad on just one channel is able to reach the billions of people tuned in.

A higher rating of a particular program means higher effectiveness of an ad running before or during that specific program. The glamor associated with very successful TV ads reaches its highest level at each year’s Super Bowl competition, where TV advertising rates are about 18 to 20 times higher than ad rates for regular prime time TV networks. In 2008 the total ad revenue for the entire Super Bowl competition was $186.3 million and the numbers keep climbing every year.

Current Trends

There are two trends that TV spots are reflecting nowadays. The first one is an increasing number of web businesses (also known as e-businesses) that advertise on TV as a way to increase their customer base or website traffic. Strong campaigns that have even peaked by showing an ad during the commercial break of the 2008 and 2009 Super Bowl competitions were E-Trade and – two famous and successful e-businesses. This goes to show (and you can find out more about details of this matter on the “Internet Ads vs. TV Ads” page) that even with the growth of Internet advertising, major e-businesses use TV ads to boost their revenue and expand their customer base.

The second trend assumes that when more consumers own DVRs, ad revenue will go down. Some studies show that advertising agencies estimate then when the DVR penetration rate reaches 60%, marketers will cut the budget they dedicate for TV ads by at least 12%.

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