The growth in the $70 billion Television advertising industry has been rising and declining alternatively over the last 20 years. This is attributed to convex nature of advertisement efficacy; early airings are influencing, however, later additional airing decrease efficacy. The TV ad sales returns have seen an increased between o.6 and 1.4 index over the past 20 years.
As compared to a handful of conventional cable stations in the 1970s, early 1990s saw the evolution of TV advertisement. The regulatory bodies permitted more licenses to satellite and cables TV that offered more advertisement channels (Lane et al, 2011). Therefore, marketers pounced on this trend that evolved at the pace they comprehended; offered media coverage to the audience who was targeted by the products. Campaigns have driven the rise of advertisement. Average House Election in the US expenditure was $318, 00 in 1992 to $973,000 in 2010. Candidates believe they “must,” advertise their campaign to win. Conclusively, the constant trend is that people still spend more time on TV than print or radio.
The declines in the TV ads were attributed to many factors. Major advertisers, automotive and financial industries fell into economic crises in 2000s. Specific factor to the decline is audience fragmentation decreases values of each TV spot. Hence, in 2010, C-level executives were watching the shifts in TV changes up from 54 %percent a decade ago. However, the rising cost of cable advertisement has made small scale marketers opt for internet advertisement alternative. Internet has “killed” TV advertisement through its Blogging and social media features. The average TV viewer spends 8 hours watching TV and watches 47 ads up from 25 a day in 2006 (Lane et al, 2011). Conversely, viewers rather switch channels than sit through commercial breaks; hence, creativity in advertisement need to revolutionize .To account for these reality marketers has to change advertisement creativity bottom up.
The future of TV ad, calls for new ads forms, cross media, earned media techniques to be embraced that leverages TV as appropriate. The techniques should be combined with social media and digital initiatives. In conclusion, as marketers embrace richness of new advertising media, the TV industry marketers should work to address the marketer’s issues relating to ratings and changing landscape.
Lane, W.R., King, K.W., & Reichert, T. (2011). Kleppner’s advertising procedure (18 ed.). Boston: Pearson.