How Effective Are Television (TV) Advertisements in 2020?

More effective than most would think for an Internet age. Effective TV ads not only include cable and dish subscribers—they now include streaming service subscribers—such as “Roku and Amazon Fire TV” (Bruell, 2019, para. 3). The latter group is only growing at the moment; not declining.

Since the first TV ad in the 1940s, viewers have been persuaded, powerfully, to make buying decisions based on what they see and hear (Choi, 2016). These sights and sounds often can move a viewer, emotionally, to adopt a puppy from a shelter (see image above), for example. Some of these TV ads effect what kind of food consumers will eat the day the ad is watched; whereas, other ads are linked to the kinds of clothes consumers will wear or purchase for a friend or family member. Whether viewers are watching news, a mystery, a drama, or any other genre that interests them, the vast majority are still likely to view a TV ad, like it or not. In “2018, the US had 304.5 million television viewers”, indicating an increase of approximately five million viewers from 2017 (Shanet, 2019, para. 4). Estimates indicate that TV advertising in the US, alone, will exceed $70 billion in 2022, an omen that traditional TV advertising is not going anywhere for the next couple of years, at least, and is certainly still effective (Guttmann, 2019).

One group that fuels traditional TV advertising ratings are persons who are retired, generally aged 65 and older. Nevertheless, there is also an increase in TV watching, overall, within the family (including children and teenagers and parents in their 20s and 30s), especially in light of the international COVID-19 pandemic. The latter group is also more inclined to have subscriptions to traditional TV and streaming services.

While more big companies have geared their advertising efforts toward social media users than ever before, many realize the revenue return they receive from traditional and new TV viewers; this return is largely based on the trust viewers have built over the years they have watched TV. Yes, cable and dish subscribers are declining compared to years past, along with TV viewers, in general. However, TV ads remain a powerful tool to reach consumers, individually and collectively, and big companies are well aware of this. For years to come, TV ads will still be fueling the revenue of big companies that sponsor related content.

References
Bruell, A. (2019, June 16). Targeted TV advertising is taking off. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/targeted-tv-advertising-is-taking-off-11560707549
Choi, D. (2016). The first television commercial ever aired 75 years ago today. Retrieved from https://www.businessinsider.com/first-television-commercial-ever-2016-6#:~:text=The%20first%20television%20commercial%20ever%20aired%2075%20years%20ago%20today&text=On%20July%201%2C%201941%2C%20at,baseball%20game%20and%20cost%20%249.
Guttmann, A. (2019). U.S. TV advertising – statistics & facts. Retrieved from https://www.statista.com/topics/5052/television-advertising-in-the-us/
Shanet, L. (2019). Why do big companies still advertise on TV instead of social media? Retrieved from https://www.forbes.com/sites/quora/2019/03/01/why-do-big-companies-still-advertise-on-tv-instead-of-social-media/?sh=7eb3b242dd41