How Digital Advertising Is the Death of TV Ads

How Digital Advertising Is the Death of TV Ads

TV entertainment has long been a cornerstone of everyday life in America. The vast infrastructure and reach of large providers like Charter Spectrum TV mean TV entertainment are available to a very large majority of American households. While the rise of modern OTT streaming platforms like Netflix and Amazon Prime Video has had a significant impact, TV is still by far the most popular and convenient mode of entertainment. 

This is with good reason when you consider TV networks often have exclusive rights to certain types of content. These include live news coverage, major live sports events, and premium first-run content like HBO or Starz original TV shows. However, despite the lofty position TV owns, a new medium is killing one of the most important aspects of TV: commercial advertisements. This blog explores several key reasons that are allowing digital advertising to slowly but surely pull ahead of TV advertising.  

1. Digital Advertising Costs A Fraction of TV Advertisements

The biggest reason by far that drives advertisers to digital mediums instead of TV is the cost factor. A TV ad can often be an expensive undertaking. You’ll have to deal with significant production costs including camera crews, equipment, actors, scriptwriters, art directors, props, and much more. The resulting accumulation of costs can often put off sellers with tight advertising budgets. 

Digital advertising campaigns cost a fraction of what you would spend on TV ads. Digital mediums like search engines, social media platforms, and even emails offer cost-effective avenues for businesses to make the most of their advertising budget. A single TV ad can often cost far more than an entire, year-long digital advertising campaign. 

2. Digital Advertising Spaces Are Agnostic of The Size of A Business

Closely tied in with the cost factor, another reason for the success of digital ads over TV ads is the inclusivity for small businesses. Traditionally, TV has been the sovereign domain of big-name consumer brands. From Philips to Chevrolet to General Electric, huge brands dominate the TV ad airwaves. Given the limited advertising slots and the high cost of production, TV advertising has often been way out of bounds for smaller sellers. However, digital mediums have no such restrictions. Theoretically, by targeting the right audiences and keywords, smaller sellers can stand on an even footing with larger brands in terms of visibility. In certain cases, like local product searches, smaller brands may even see more visibility than a household-name seller with a massive ad spend. 

3. Digital Mediums Offer Better Analytics, ROI Tracking, and Refinement

Speaking of ad spend, we arrive at another key reason contributing to the slow demise of TV advertising. With TV ads, there are ways to estimate how many people see an ad spot based on information from third parties like AC Nielsen. This information is based on things like when the ad ran, what channel it ran on, and what audiences prefer those channels. 

However, this is at best a refined estimate and an educated guess at worst. Digital mediums, on the other hand, offer a much higher degree of accuracy. Thanks to real-time analytics and tracking, sellers are in a much better position to manage their ad spend efficiently. Most digital advertising platforms offer detailed information on things like clicks, impressions, conversions, and campaign spending. All of this information is extremely valuable in tracking, improving, and refining the return on your advertising spend.  

4. Advertising on Digital Spaces Opens Up Access to Global Audiences 

This remains a huge factor that attracts more and more sellers to digital mediums every day. TV advertising can be targeted but to a limited degree. These limits are often apparent when you consider many US TV networks are only available to audiences within the United States. This is in the same vein as Charter customer service only being available to the provider’s subscribers. So while TV ads may reach a huge chunk of your intended audience, it is still limited by geography and broadcast rights. 

On the other hand, digital spaces are available to anyone with a working internet connection. That means you can broaden your focus far beyond your local community to a global audience. Think of the massive advantage this offers, at a fractional cost of what international advertising budgets can cost. Never underestimate the benefits of a potential market.