The Search for the Medium of Tomorrow: Why Television Advertising Isn't Dead Yet

Today's media landscape provides marketers with a multitude of possible creative concepts and media combinations. In this highly competitive and complex market, advertisers are searching for any way possible to catch the eye of the illusive consumer. While innovation seems to be the word on everyone's minds, marketers are beginning to doubt the effectiveness of traditional media. Although it is important to embrace the variety of new venues available for reaching consumers, we simply cannot deny the power that television still holds as a marketing medium.

As the advertising landscape rapidly develops with the advent of new technology, many marketers believe that the only way to keep up is to stay ahead. Whatever worked before is simply not good enough, today's advertising needs to constantly push boundaries to succeed. With experts like Jim Stengel, global marketing officer for Procter & Gamble, calling for a "mindset shift" in the way we think about advertising, it would seem that change has become the staple of success. Stengel argues that instead of simply "telling and selling," marketers need to be focusing on building relationships with audiences through campaigns that embrace new, interactive media that puts the consumer in control.

For many, innovation means leaving behind the traditional anchor media such as television and embracing the tools of technology. According to the president of GM North America, television used to be the answer, "the only problem is that it stopped working somewhere around 1987." The downfall of television advertising has largely been attributed to the rise of the Internet as the ultimate consumer marketplace.

One argument for the apparent loss of effectiveness in television advertising is that because people are spending more time on the Internet, they are spending less time watching TV. However, Nielsen Media Research reports that "40% of the US 2+ population are more television-centric, 24% are more Internet-centric, and 15% are equally heavy users of TV and the Internet" (April 2006). As shown in the graph on the left, heavy Internet users even tend to watch more television than light and medium Internet users. According to another Nielsen study in April 2007, 56% of consumers trust television advertising, whereas only 34% trust search engine ads and 26% trust online banner ads.

It is clear that people are still watching television, but what about the TiVo factor? With recorded television becoming increasingly popular, does anyone even watch the commercials anymore? These questions have been addressed by several studies that have shown that the effectiveness of television ad campaigns has not been heavily impacted by the advent of the DVR. Communicus research reveals that "the differences based on DVR ownership or personal usage are only directional--as of early 2007 there is no clear pattern suggesting that DVR's have impacted on branded engagement with actual commercials that have aired on traditional TV." On a long-term basis, TV advertising increased in effective awareness between 1980 and 1995, and has been stable since then.

Television has continued to be a critical element of successful campaigns for several reasons. Most notably, advertisers still need to speak to a broad target. While marketers have become enamored by the Internet components of their campaigns, the audience that they reach is incomparable to the traditional television spot. Although Internet campaigns have higher levels of involvement among viewers, much of the high-level engagement takes place among a relatively small set of already loyal brand users. Television commercial awareness scores, on the other hand, reach an average of 15% of US adults, which translates to around 30 million people.

While television is certainly a necessary component of any major campaign, it is important not to downplay the importance of the use of integrated multimedia. In fact, the best campaigns are those that incorporate multiple media messages that play off of each other to create a synergy that enhances brand awareness. The ideal for every advertiser is for each message to enhance and build upon the others. Typically, television creates the initial momentum, driving the audience to the other media such as websites or online videos.

One example of a company that has successfully integrated a multimedia message is Geico Auto Insurance. The television-centered Geico campaign features the highly recognizable Gecko (pictured right), who has come to be the face that most consumers associate with the company. The television spots do an excellent job of plugging the website, driving many consumers online for a car insurance quote. The campaign also employs Internet banners for click-through, bringing in even more website traffic. This Gecko campaign has created a brand awareness that has made Geico one of the "fastest-growing auto insurance brands."

The conventional wisdom for marketers today has been to focus on innovation to stay ahead of the times. As soon as word got out that the Internet was the wave of the future, everyone seemed to assume that television was dead or dying. However, it is important to keep in mind that many times the trend has been to over-exaggerate the effects of new technology. When computers first arrived in our homes everyone predicted that robots would be doing our chores within a matter of years. With this in mind, it is crucial that marketers today recognize the power of new media, but do not forget that their audiences can still be reached using the staples of the traditional model.