How To Advertise On Cable Tv – It’s not that TV advertising is on the verge of extinction, but the TV advertising business model is in flux. Yes, groups will still gather during the Super Bowl to watch commercials, but things have definitely changed since the commercial excitement of the show.
TV advertising is still one of the most effective ways to build awareness for a product or brand, but ad spending is shifting to the digital world and media companies are working to find solutions. Here’s a summary of how TV advertising works and how it’s changing
How To Advertise On Cable Tv
According to the US Bureau of Labor Statistics, Americans spent an average of 3.05 hours per day watching television in 2020. This is slightly higher than 2.74 in 2019.
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Of course, today’s advertisers don’t get a single shot at capturing every one of those viewers as they did when the three major networks ruled the airwaves. Today’s cable TV viewers can choose from over 10,000 channels, including pay-per-view, ad-free channels.
In the United States, television advertising consistently provides businesses with the highest ROI of any media advertising. Each channel has specific limits on ad length and additional limits on topics For example, during children’s morning shows, viewers will not see beer ads. However, TV advertising is nowhere near as precise as digital marketing based on user algorithms.
For businesses with limited advertising budgets, it’s important to choose the right time and the right price to run your ads. A successful advertising campaign is the result of many smart decisions, including how often the ad will appear, how many people will see it each time it airs, and the degree to which the ad will engage.
For example, many TV advertisers are turning to second-screen advertising. The purpose of these ads is to attract viewers to their mobile devices (this “second screen”) to interact with the company’s website during the live show.
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Brands and media companies are also working to match audience demographics — such as their age and gender — with each show to market their products to that specific audience. The popularity of a program and the number of times an advertiser agrees to run an ad affect the total cost of running an ad.
Because it is one of the most watched events of the year in the United States, the most expensive ads are shown during the Super Bowl In 2022, the average 30-second Super Bowl ad will cost advertisers about $6.5 million.
However, the TV advertising model is changing due to the shift to online programming and streaming services such as Netflix Inc.
If it’s a show people want to watch in real time, real estate advertising is competitive. The term “primetime” refers to those times of the day when viewership was at its peak, but has been altered by power-up viewing, DVR recording and streaming.
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If you’ve read about the TV industry, you’ve probably heard of the first season. It’s the spring pre-sale season when marketers can buy airtime for TV ads (and digital ads) months before the fall season begins.
The first initial presentation was in 1962, and every year since then major television stations have released their upcoming shows in hopes of booking advertising space.
There are also television “sweep” periods that occur at certain times of the year when the show has special guests or must-see events (such as Cam and Mitchell’s wedding on the ABC sitcom,
Instead, Nielsen Holdings N.V.’s data and ratings. From this time on (NLSN) is used to set advertising rates for local stations.
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For years, advertisers and networks have used Nielsen ratings and CPM pricing (or cost per thousand visitors, a barometer of the cost to reach 1,000 visitors). These days, this measure becomes less important as technology changes how and when you watch shows.
If advertisers focus on targeting a very specific type of audience, they may lose focus on the right time for the show to air. The point is to find the right audience, not assume it’s the golden ticket to a certain period of time.
Networks such as NBC, ABC, Fox, CBS and The CW are estimated to have secured $8 billion to $10 billion in prime-time advertising revenue in 2021-2022.
For decades, programs airing between 8:00 PM and 11:00 PM have been prime targets. This is still a desirable timeframe, but the emphasis on digital technology makes it less desirable.
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Over the years, the TV advertising model has changed with the advent of DVR, TiVo, on-demand and streaming services. Suddenly, viewers can choose to watch an ad while millions fast-forward and watch their favorite shows with limited or no ad breaks.
Total US TV ad spending is expected to decline 4% to $60.575 billion in 2021, from $63.4 billion in 2020.
It can be difficult to quantify how far advertising revenue money has shifted from prime time networks to increasingly popular digital and streaming services.
Also, the Covid-19 pandemic and its aftermath forced networks to reschedule, which affected advertising revenue in those years. For example, the Tokyo Olympics, which were supposed to be held in the summer of 2020, have been postponed to the summer of 2021.
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Undoubtedly, the influx of ad-supported streaming services gives advertisers more opportunities to invest their money, creating competition for prime-time networks. These streaming services include Peacock, Hulu, Paramount Plus, and HBO Max.
Netflix is the leading on-demand streaming service that offers TV shows, movies and original content. It offers zero ads for a monthly fee depending on your package. Amazon Prime Video is another streaming service designed for customers who have an Amazon Prime account, and it’s growing rapidly. In fact, Amazon Prime was the UK’s fastest growing streaming service in the last quarter of 2021.
Hulu is the third major on-demand streaming service owned by Disney, offering TV shows, movies, on-demand TV and live TV. Disney+ is another fast-growing streaming platform, and the success of the Marvel and Star Wars franchises has helped propel the platform to over 100 million subscribers in 2021.
Since many streaming services like Netflix don’t rely on advertising dollars, businesses and traditional networks are trying to find new and better ways to reach their target audience.
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Some networks, however, belong to multimedia giants that also offer streaming services. For example, Disney owns the ABC network, which means it makes money from Hulu’s streaming service, Disney’s movie business, and advertising on the ABC network in prime time.
As a result of consolidation in the media industry, it is not always clear how the transfer of advertising revenue from prime time networks hurts the networks if both belong to the same media conglomerate. However, it is clear that the premium subscription will allow subscribers to stream ad-free, and streaming platforms are already starting to adopt this model (YouTube Premium).
Some types of TV advertising are “compare and unique personalities” where the advertiser shows why their product is different or unique. The “show need” ad shows the need for a product and a solution. Most medical and pharmaceutical advertising follows this model. Other examples include how the use of a product causes something interesting to happen (benefit cause stories) and the use of celebrities to generate interest in the product (called celebrity imagery). An example of this is Samuel L. Jackson’s Capital One spot and William Shatner’s many Priceline ads.
The cost of TV advertising depends on the network, time of day, frequency of advertising and whether you buy a bundle or advance advertising. Costs can vary widely, from several million during the Super Bowl to many inexpensive ads aired on an obscure channel on Wednesday mornings.
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Some of the advantages of TV advertising are the ability to reach a large number of potential customers in one advertisement. It differs from the streaming model because TV viewers have no choice when to watch the show. However, the TV advertising industry is facing an identity crisis as digital technology dominates.
Digital media offers many more targeting parameters than TV advertising. Due to the algorithmic nature of online identities, businesses are able to narrow down customers more effectively, and their ads can generate more sales as a result. TV ads used to be more powerful because viewers could only watch media on one device, but as mobile phones, laptops, tablets, and smart TVs became more prominent, traditional TV ads had a harder time competing.
TV advertising is not the money-making machine it used to be, but it can still be a profitable business. While screenings of events like the Super Bowl remain profitable, companies are struggling for DVRs, on-demand and viewer streaming services and ad dollars that are chasing them.
Advertisers will continue to look for ways to attract younger audiences who are increasingly watching their entertainment online or on their phones instead of on TV. Still, traditions such as upfronts and