TV: STILL THE DOMINANT PURCHASE INFLUENCER
A recent study from GfK shows that at all stages of the purchase funnel, from Awareness to Purchase, Television has the highest influence on consumers. It also leads in reach as the top platform for advertising exposure. Part of the medium’s influence is due to the trust that viewers place in it, and Local TV News is #1 for trust among all platforms. Additionally, exposure to TV ads drives viewers to search online; if you want more web visits, start with TV. (tvb.org: Mar 1, 2024)
2024 AD SPENDING EXPECTED TO GROW
After a relatively slow 2023, global ad spending is predicted to grow by 7.7% in 2024—nearly doubling last year’s 4% increase. Domestically, expectations are even higher, with an 8.2% increase this year versus 3.7% in 2023. In addition to a healthier overall economy, growth will be driven by the upcoming Summer Olympics and record-setting political spending. Viewership across all platforms hit a four-year high in January, and shoppers have started returning to brick-and-mortar stores, indicating that consumers are watching ads and are ready to spend. (MediaPost: Mar 5, 2024)
CONSUMERS ARE READY TO SPEND… ON ESSENTIALS
While consumers are more willing to open their wallets (see above), they’re doing so selectively. Some buying habits developed at the height of inflation have stuck, and NiQ’s Consumer Outlook shows that while consumers expect to spend more in areas like Groceries, Health Care, and Transportation this year, they plan to pare back on expenditures like clothing, beauty products, and dining out. In fact, “Out of Home Dining/Eating” showed the largest pull-back at 25.8%. As consumers consider their spending more carefully, reaching viewers effectively and efficiently is more crucial than ever for advertisers. (Marketing Charts: Feb 27, 2024)
WOMEN’S SPORTS: SCORING WITH VIEWERS
As coverage of women’s sports draws larger audiences, advertising within the games has shown increasing effectiveness. Some key takeaways from EDO’s Women’s Sports TV Outcomes Report: Women’s Tennis leads the pack, outperforming the average Primetime effectiveness by more than 50%; the WNBA is growing rapidly with ad engagement increases of 23% for the playoffs and 30% for the finals; and Sportswear brands whose campaigns feature female athlete have seen increases in effectiveness as high as 69%. (Next TV, Mar 7, 2024)
THIS WEEK IN VIDEO HISTORY
March 8, 1988 – The Writers Guild of America begins their third strike since its founding. No concerns over AI or streaming residuals this time around, mainly because they didn’t exist outside of science fiction. The major issues in 1988 were syndication revenue and creative rights. The strike continued until August 7, which was longer than last year’s by just five days. It also outlasted previous work actions in 1960 (148 days) and 1981 (92 days).
