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Digital Videos VS TV Commercials

The Advertising Industry was taken aback when Adidas, one of the biggest giants of Sportswear decided on pulling out from TV Commercials completely. Based on industry reports, ‘Adidas is targeting US $4.3 billion in sales solely depending on Online Platforms by 2020. The figure is nearly 4 times the US $1.1 billion in E-Commerce Sales in 2016.’ This whopping transition is a result with a hope to target the younger audience who are more inclined towards content delivered through mobile devices. 
Taking these developments into consideration, Facebook is consistently ramping up its video content strategy. Very soon, scripted video content would be available for online consumption. Cisco Systems claimed that videos accounted for 60% content accessed and used by mobile data traffic, which would ultimately result in 78% growth by 2020.*
These developments and Adidas transition combined with Facebook working towards amplifying its video content strategy leads to the comparison if digital videos are going to trump TV Commercials in the near future. 

Let’s look at it in details:

Digital Videos:
The shorter the content, the easier it is to consume. Reportedly, Google is encouraging shorter formats of digital videos; which is straight to the point.
Short videos can be cross-posted across multiple platforms within a short period of time. It is not possible to do the same with TV Commercials unless they too are available on an online platform.
TV Commercials are still available on digital/online platforms which is not the same in case of digital videos specifically designed for online platforms.
Similarly, giants such as Netflix are looking towards a transition towards the digital platform as well.
Twitter is testing pre-roll video ads that can be bought similarly to buying on TV. It is reported that “The ads run ahead of content from digital publishers, TV networks, and media partners and sports leagues”.
As more people stream their favorite shows, the ad tech company BrightLine is trying to help ads on smart TVs work more like digital advertising. 

No doubt digital video is going strong but TV’s ad share remained largely stable at 42% in 2016 and 41% in 2017.*
Even if the majority of the audience is still leaning towards traditional TV, their behavior and attitude around viewing TV has changed. It was reported that Millennial and Gen Z multi-task while watching TV. Tasks would revolve around their mobile devices such as texting, web browsing, online shopping, e-mails etc.
There are no quantifiable metrics to equate whether the TVC was viewed by the targeted audience.
It’s still a one-way communication which leaves a gap between the brand and the consumer. 
It’s still a more costly affair in comparison to digital videos.
No room for mistakes or retraction with TVCs as they are slotted within TV programs which could cost a lot of money to take down and put it up again.

Despite what it may seem like, TV Commercials are still going strong, but steadily declining in its ad share. Buzzwords such as going “all digital”, “digital videos” and “digital advertising” are slowly getting integrated within media plans. Naturally, where consumers go, brands follow.
*Data is based on either global or U.S. audiences.

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