The Future of TV Ads: Are You Ready?

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TV ad spending in the United States reached up to $60 billion in 2021, generating an ad revenue of $228.09 million. Yet despite this significant ad spend and revenue, there are still many specialists in the marketing field who believe that TV advertising is chasing a lot of competition in the digital world. This is primarily due to the success of social media ads and a growing trend towards ad-free TV such as Netflix.

Aniview is committed to bringing brands’ advertising to various media platforms that boost their reach and improve monetization. And from what the company has seen, TV ads are not on the verge of extinction. They are in a transition phase that looks toward the future of TV advertising.

Powering TV Ads to the Future

TV ad revenue continues to rise. National broadcast and cable television generated $39.9 billion in 2021, a 7% increase from last year. This number is expected to grow to $81.2 billion by 2025. These predictions are powered by the trends in the TV ad market that show it’s adapting to the future.

Advertisers are focusing on engaging content

More resources to create high-quality advertising videos have become more accessibly priced. As a result, a professional ad doesn’t have to be so expensive anymore. And instead of spending money on a multi-day shoot, Advertisers can utilize influencers to create personalized and relevant content that is roughly the same.

This shift is towards less costly but more engaging content that viewers will recognize and relate to. Previously, only large companies could afford campaigns on TV networks. Now, even mid-sized and small companies can create the same advertising impact. They can broadcast engaging content on national TV and reinforce it with digital advertising efforts.

Auction-based Market-Pricing

Through analyzing stats and performance of ads and time slots, TV channels are creating an environment of auction-based market pricing. For example, remember how the Super Bowl ad times are some of the most coveted in the world? The companies that get those slots are the ones that bid the highest.

Slots, allocations, pricing, and more are bid on in an auction system, creating a highly lucrative market for TV advertising revenues during high-ticket events such as famous TV shows. Even Google has started to adopt the same model for radio and TV ads.

More Targeted Advertising 

TV advertisers are now becoming more selective about who sees their commercials. The concept is similar to digital ads, and advertisers research specific demographics and target audiences. Through information gleaned from the network, commercials on streaming services or TV box services are tailored specifically for the demographic living in that particular home.

advertisers research specific demographics and target audiences

It improves the overall ROI from the commercial because the people most likely to be interested in the product or service on the commercial are the ones seeing the ad. They are more likely to respond to the call to action.

Using Digital Techniques in a Network World

Many analysts and experts agree that the future of TV advertising is a marriage of the techniques from traditional TV advertising and digital advertising campaigns. Combining both allows brands to maximize the ROI of their advertising budgets by creating relatable content that is now targeted at specific viewers.

Aniview gives advertisers the tools and products that they need to create targeted video advertising on multiple media platforms. We’ve connected brands with global networks that can bring their ads to bigger audiences and give them access to better monetization. Contact us for a consultation or read about our products and ad marketplace.

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