In today’s fast-paced digital world, the way people engage with advertisements has significantly evolved. However, the relevance of advertising in various formats continues to hold a crucial place in consumer engagement and business strategies.
Here’s a detailed look at the current state of advertising and its effectiveness–and especially whether people still watch TV ads.
Digital and Social Media Advertising: A Growing Realm
Overall, the data on advertising shows that people are shifting from traditional TV to social media and streaming platforms. But those platforms still have plenty of ads!
- Shift Towards Digital Platforms:
- Social Media Influence: Social media platforms are a potent market for advertisers. In 2021, 4.62 billion people used social media, marking a 4.8% increase from the previous year
- Engagement on Instagram: Instagram shows significant engagement, with 90% of users following at least one business and 0.83% average engagement rate for business account posts.
- Increased Budgets: Social media advertising budgets are expected to grow 11.76% annually, reaching $358 billion by 2026. TV advertising is not growing at nearly the same rate. But there’s a catch.
- The Power of Video Content:
- YouTube’s Influence: YouTube has become a key advertising platform. 80% of shoppers watch a related YouTube video at the start of their purchase process. Also, paid YouTube mobile ads receive 83% viewer attention. For many people, YouTube is effectively their TV. So although traditional TV advertising may not be growing very quickly, the growth of YouTube ads means that many more people are watching ads, even if TV viewership is declining.
- Consumer Preferences and Behavior:
- Ignoring Sponsored Results: A significant 70%-80% of users ignore sponsored search results, favoring organic results. Additionally, as many as 2/3 of people say they don’t full pay attention to TV ads.
- Ad Blockers Usage: The number of users with ad blockers reached 763.51 million in 2019, indicating a preference for less intrusive advertising. Recently moves from YouTube, though, aim to prevent the use of this tech.
- Expectations for Content Creation: Around 84% of consumers expect brands to create engaging and informative content.
The Continued Relevance of TV Advertising
Despite the rise of digital media, TV advertising remains a potent tool:
- Investment in TV Advertising: Investing in TV can increase advertising effectiveness by 40%, with a high likelihood of profit return.
- TV Ad Spending: The US TV advertising spending was predicted to reach $68.35 billion in 2022. It’s still a massive market!
- Changing Viewing Habits: While there’s a decrease in traditional TV watching among younger demographics, adults in the US still spend around 5 hours and 24 minutes per day watching videos. Again, much of what we’d call TV is now on YouTube–and so are the ads.
The Emerging Mobile Advertising Landscape
Mobile advertising is rapidly growing, reflecting the shift in consumer device preferences:
- Rise in Mobile Ad Spending: Global mobile ad spending is projected to reach $413 billion by 2024.
- Integration in Marketing Strategies: 68% of companies have incorporated mobile marketing into their overall strategies.
- Consumer Search Trends: Mobile searches for “best” products have grown 80% between 2015 and 2017, indicating the reliance on mobile devices for purchase decisions.
Conclusion
Advertising, in its various forms, continues to be a significant part of the consumer experience. While digital and social media advertising are on the rise, traditional TV advertising still holds importance, particularly among certain demographics.
The growing trend of mobile advertising further highlights the need for businesses to adapt to changing consumer behaviors and preferences.
In short, yes, people still watch ads! In fact, with the shift from broadcast TV to digital streaming, they likely watch even more ads than they did in the heyday of TV commercials.
