Because of the transformation of the smartphone and digital technologies, more and more information can be distracted of the consumer. This also resulted in a drastically evolvement of the TV industry over the past 15 years, since viewers have more choice than ever to watch their favorite TV show or just get their daily portion of entertainment online. TV advertisers have been buying media the same way over the past 50 years, but nowadays a big change is occurring which results in whole new landscape of the advertising industry.
The biggest power of a TV advertisement’s, which was reaching a massive audience in once, has been reduced by fragmented viewing. This mainly is a result of the movement of viewers to online channels, such as YouTube and Netflix. Traditional advertising terms as GRP (Gross Rating Point), which gives an estimation about the total amount of impressions of your ad, used to be a frequently used term, but is becoming more out of topic these days.
Digitalization made it possible to understand the consumer better and advertisement anticipates on it. Personalized marketing is more and more becoming a necessity these days to surprise and interact with the consumer. Therefore, it must be baked into a brand’s marketing and advertising strategy (Forbes, 2017).
Nevertheless, too many big corporates such as the FMCG companies are, in my opinion, still too focused on the traditional way of advertisement via channels as radio and television. Since digitalization made it possible to interact with consumers in so many other ways, they let down here.
For example, Virtual Reality (VR) is already big business, with a worth of $5.2bn by 2018. In the upcoming years this is becoming “the” business, simply because the experience it creates is unparalleled. It takes the user in a totally different mind-blowing world that feels real. Advertisers will know how much we like their ads because our pulses via our smartwatches will tell them. In this case the term GRP will become history…
What other innovations within advertising the 2.0 way could you come up with? Let them know in the comments!
References:
Chittilappilly, A., & CHITTILAPPILLY, A. (2016). TV GRPs: You’ve Had Good Run, But It’s Time For New Currency. Mediapost.com. Retrieved 20 October 2017, from https://www.mediapost.com/publications/article/282251/tv-grps-youve-had-good-run-but-its-time-for-ne.html
Forbes. (2017). Forbes.com. Retrieved 20 October 2017, from https://www.forbes.com/sites/onmarketing/2017/10/17/future-of-marketing-is-marketing-as-a-service/#79945c269946
Kean, A. (2015). The future of advertising: what will 2025 look like?. the Guardian. Retrieved 20 October 2017, from https://www.theguardian.com/media-network/2015/feb/16/the-future-of-advertising-what-will-2025-look-like#img-1