Ever since the 1950’s the world has been obsessed with television. Although television was invented in 1927, it wasn’t until 1941 that it was used for advertising and in the 1950’s there came the television advertising boom.
For a long time it seemed that broadcast TV would always be a part of family life, but the last ten years have seen a new era of home entertainment. With the internet and media streaming services revolutionising the way that we engage with our favourite shows, the advertising world has had to keep up.
Curious to see how the economy has been affected by the digitisation of entertainment, price comparison experts Money Guru have looked into what could be the end for broadcast TV.
Image source Pixabay
Changes to Advertising
The first ever TV advert in the UK was for a type of toothpaste and in 1969 the first colour advertising was produced by Birds Eye. The advert went out during Thunderbirds at 10:05am and the slot was bought for £23, reflecting the uncertainty of TV advertising success.
Companies now spend an estimated average of £5.6 billion on Christmas advertising alone.
However, changes have started to happen throughout the year when viewers are less likely to gather round the television for live programmes.
2017 saw the first ever year in which more money was spent on digital, rather than TV, advertising. $209 billion, about 54% of the market, was spent on digital advertising space such as online adds.
But the big question is, why has there been such a shift?
Live TV and the Internet
Of course, these changes aren’t completely sudden, they have been a long time coming.
As young people grow up using the internet and online streaming services to access their music, films and favourite dramas, advertisers have been forced to recognise that traditional television advertising might not be the way to go any longer.
Add into the mix that most TV viewers now use satellite or cable which allows them to prerecord shows and fast forward past advertisements and it’s easy to understand why this shift in advertising spending has happened.
In 2017, 20% of all TV viewers didn’t watch any live TV and the younger the age group, the less average time is spent watching broadcast TV. This means that if the trend keeps up, eventually broadcast TV will be a thing of the past.
How We Consume News
Looking at news consumption, the trends amongst young people are still startling.
31% of young people get their news online, 24% watch the news on TV and just 5% read a printed newspaper with the last 4% listening to the radio. In those aged 65+, 51% use the television to get their news, with 11% using newspapers.
65% of under 35’s now consumer news produced by algorithms and this had led to the recent controversy over ‘fake news’.
Traditional news is chosen by editors and journalists, whether it is presented on TV, radio or written up in newspapers and magazines.
New Ways to Advertise
As consumers are less accessible through broadcast TV and traditional newspapers, brands are finding ever more ingenious ways to reach the consumer.
Product placement was legalised in the UK in 2011. Product placement allows brands to pay for their products to be seen in films and TV shows. Although already highly used in the USA, it is a relatively new form of advertising here in the UK. The biggest example of product placement is the addition of a Co-Op and Costa to Coronation Street. These additions mean that viewers will repeatedly see both brands when watching the show, without having to sit through the adverts.
Product placement gets around the problem of pre-recorded shows and internet streaming and therefore will only become more popular in the future.
Social media will continue to be a big player in the world of advertising, using sponsored posts to capture the attention of possible buyers. Sponsored posts can take the form of Instagram images or YouTube videos and often reach the consumer without them even knowing. Social media influencers are highly popular amongst young people who are rarely reached through broadcast TV or printed newspapers.
Learn more about the future of broadcast TV and how our viewing habits are changing.
By Bekki Ramsay