Why digital advertising is the future
In a world where smartphones are becoming a third arm of the millennial generation and beyond, internet video is continuing to grow coverage, leading to a steady decline in television advertising.
The younger generation are no longer watching their favorite shows on TV, but rather turning to the more convenient on-the-go platforms such as YouTube and Netflix.
As traditional TV advertising falls behind, the pressure is on for marketers to optimize their digital strategies. But why is native video advertising likely to replace TV? And how can businesses adapt to these changes in advertisements? Read on to find out more.
TV advertising is falling
When it comes to the decline of TV advertising, the truth is in the numbers. In 2016, US revenues from digital advertising exceeded that of TV advertising for the first time; over US$72 billion for digital, compared to just over US$71 billion for TV.
This is a trend that is happening globally, as more and more companies are choosing to spend more money on digital advertising. An example of a big brand ditching the traditional means of advertising is Adidas. The sports brand has completely withdrawn from TV advertising, considering it an ineffective strategy for their central Asian market.
The younger generations love for the internet
A major reason behind televisions losing the battle with advertising is the simple finding that young people prefer online video.
According to a study commissioned by digital-media firm Defy media, just 36 percent of consumers reported that they cannot do without a TV screen. While 67 percent of respondents cannot imagine their lives without YouTube, followed by Netflix at 51 percent.
This same audience is viewing 2.5 times as many internet videos than traditional TV, spending an average of 20 hours per week watching video content, compared to 8.2 hours of television.
Another way that internet prevails is in its ability to target consumers with more personalized ads. Television acts as an advertising billboard, portraying general information to a generalized audience. But through machine learning and artificial intelligence, many companies are now able to target consumers based on their past purchasing behavior and search history.
The rise of video bloggers and influencers
According to research by Havas Media, just 22 percent of brands are trusted- this is a frightening metric for any marketer. Without an establishment of trust between your brand and your target audience, it is almost impossible to market your product or service.
Consumers are relying more on the authentic reviews and opinions of video-bloggers and influencers, who seem to be overtaking the online world of advertising. These are average people who usually have an opinion on a niche topic such as fashion, travel, fitness, and gaming.
As well as becoming thought leaders of the younger generation, influencers and vloggers are actively involved in the advertising campaigns of big brands. For advertisers, video bloggers provide a platform in which to reach a large targeted audience pool.
Furthermore, research has consistently shown that people are far more likely to listen to the opinions of “everyday” people than large companies and institutions. Thus, using an influencer to share their experience of using your product will be more successful and less obtrusive and forced than using traditional advertising techniques.
In addition to this, working with influencers and top video channels poses as a much cheaper strategy than traditional advertising on TV. And with ad blocking adoption in the US up nearly 50 percent, influencer marketing is an effective alternative to combat this problem.
With digital advertising, everybody wins
The transition to online advertising is a winning situation for everyone. For advertisers, it presents an opportunity to see a much greater return on investment by reaching a targeted audience at a much cheaper price.
And for consumers, it removes the need to view unnecessary and obtrusive ads, and instead view products and services that are more targeted to their needs and wants via people they trust.