Faced by dwindling returns TV advertising will struggle to be sustainable

New Ideas in MarketingEssential news for marketers, summarised by YouGov
December 10, 2019, 3:51 AM UTC

Increasing costs are leading to some marketers getting priced out of the TV ad market altogether.

Global TV ad sales fell by 4% in 2019 and 3% in the US, according to research by Magna Global. The decrease in viewership has stemmed from the rise of streaming media and Over-the-top (OTT) platforms.

While TV has managed to handle the situation, buy increasing rates, but increasingly dwindling returns means the tactic won’t be sustainable. “…The pricing is not growing quite as fast enough to offset the decline in ratings,” Vincent Letang, EVP of global market intelligence at Magna said.

The author states that unless the Subscription-based videos on demands (SVOD) networks start to make some inventory available for brand advertisers, an increasing number of TV viewers will completely stop watching full-screen, full-motion advertising.

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