Monthly Archives: September 2010

Advertisers and Consumers Like Television

I recently heard someone ask “If ROI is so important, why do brands still advertise & market on television?” Here is part of the answer to a very complex business issue.

According to the IAB – Interactive Advertising Bureau, Nielsen estimates that, for the fall 2010-11 broadcast season, there will be 115.9m US TV households, and 294.65m persons 2+ watching. To put this in perspective, that’s almost equal to the total number of both households and population of the United States. Nielsen also recently published some key media statistics:

> 114M US households have a least one television, almost 30% own 4 or more TVs; the average American watches 31.5 hours of TV per week; kids 6-11 watch 8 hours of live TV per week.

> almost 99% of video content is watched on traditional television; 100M+ are cable and satellite TV ready.

A complementary perspective is offered by comScore. In a piece written by comScore Co-Founder Gian Fulgoni, The Lure of TV Advertising for Internet Businesses, it’s clear that even companies that are significant Internet players, are attracted to the lure of television. Some of these companies include Yahoo, AOL, Autotrader.com, Google, Expedia, Monster.com, Priceline and eHarmony. Fulgoni points out that over the past decade, television ad spend share has increased from 38% to 46%…”confirming that despite the illusion created by some media pundits who would have us believe that TV is on the ropes…”

Even as the Internet continues to grow in appeal, brands prefer television as an advertising medium. While consumers are watching more television than ever and there is no let up in sight in terms of total time spent viewing there are two key drivers, as noted by comScore, driving advertiser appeal. The first is that a lot of people can be reached, during high-rated shows, in a very short amount of time. This is very appealing to advertisers, where time is indeed money – well spent. The other is related to risk. Almost all television advertising is copy tested,especially for major brands, before going on air in order to ensure that the intended message is hitting the mark with the target audience.

With viral advertising, notably on YouTube, campaign success is largely a role of the dice. For every campaign of note, such as the recent Old Spice series, there a thousands of videos that rarely get a mention, let alone reach the people they were meant for. While it is cheap to air an ad on one of the Freemium channels, it is very difficult to understand reach and frequency in relation to target audience. You cannot anticipate who will view what, when and how often before going on air unlike television advertising that is tied to a program’s intended viewing audience. Otherwise, it’s a bit like playing media planning roulette and risking loss of control of the brand. 

As Fulgoni aptly notes “The cost of being wrong becomes substantial”.

– Ted Morris, 4ScreensMedia

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Algorithms Predict, Brands Build Relationships

Bloomberg news recently published “Can Computers Predict the Next Big Thing?” a perspective on predictive analytics. 

One of the most ingenious predictive capabilities involved the identification of ‘organic’ trends in the form of viral buzz.  By seeding the most talked about items, one brand’s campaign was successful in leveraging organic content  (earned media), resulting in a spike in sales.

At the end of the day, as the article rightly implies, the power of a brand lies in its ability to persuade and strike a chord at the emotional level in humans – the very thing an application or algorithm cannot do.

– Ted Morris, 4ScreensMedia