Report: TV Advertising Losing Relevancy

According to The Wall Street Journal, television advertising has experienced a shift in relevance. Let’s delve into the details:

Mondelez, the snack company behind Oreo cookies, made an unconventional decision earlier this year: it chose not to spend any money on TV advertising to promote a limited edition of its Oreo cookie. The reason? The specific audience they wanted to reach—Gen Z members, multicultural audiences, and households with children—simply aren’t watching enough television.

The move by Mondelez highlights a broader trend: TV advertising is losing its effectiveness due to changing viewing habits and the rise of digital platforms. Here are some additional insights:

• Audience Fragmentation: Traditional TV audiences have fragmented across various channels, streaming services, and online platforms. Advertisers find it challenging to reach specific demographics effectively.
• Digital Alternatives: Advertisers increasingly turn to digital channels, such as social media, YouTube, and streaming platforms, where they can target audiences more precisely based on data analytics.
• Measurement and Accountability: Digital advertising provides better measurement tools, allowing advertisers to track engagement, conversions, and return on investment (ROI) more accurately. TV lacks this level of granularity.
• Cost Considerations: TV ad slots during prime time can be expensive, especially for national campaigns. Digital advertising often offers more cost-effective options.
• Ad Skipping: Viewers now have the ability to skip TV ads using DVRs or streaming services, reducing the impact of traditional commercials.

While TV advertising still has its place, especially for certain brands and events, marketers must adapt to the changing landscape. The power of TV advertising may not be as robust as previously thought. As advertisers rethink their strategies, they’ll continue to explore the balance between TV and digital channels to maximize their reach and impact.