The debate about the effectiveness of broadcast television continues to swirl, but it seems the biggest tech companies on the planet are turning to TV for its reach and ability to engage human emotions - here's a recent report from ThinkTV
In the UK, Christmas 2018 saw a significant amount of TV brand advertising for online brands. Amazon, Google, eBay and Uber spent £15m in December alone, and there were many other online brands using the power of TV for mass reach of consumers. Digital brands and Big Tech companies have increased spend on proven media in the UK for the last five years, a trend being seen globally too.
The Big Tech companies have been major investors in TV, both in the UK and in U.S.A. These days, even Facebook advertises on TV, in fact in the U.S.A, out of thousands of advertisers, Facebook was the 72nd largest spender on TV in 2018 (meanwhile Google was the 21st largest spender).
Here in New Zealand, large internet and e-commerce companies* are among the biggest spenders on television, investing around $33 million on television last year, representing 80% of their advertising budgets**. Clearly, for online brands in particular, which have little or no physical presence, TV’s ability to create emotional connections with large audiences is vital.
*Trivago, Webjet, Expedia, Harmoney, My Food Bag, TradeMe, Amazon
**Nielsen Advertising Information Services – ratecard, April 2018-March 2019
“So, what’s going on? These are the very companies that are reputed to understand advertising effectiveness in exquisite detail. With their rich data and world-leading analytics, we might have expected them to focus on data-driven sales activation media. Isn’t TV the medium they are advising others is a waste of money?
Quite why they do this when the overwhelming body of effectiveness evidence points to the opposite conclusion, is increasingly an enigma. Clearly Big Tech are looking more objectively at what works: despite having access to advanced digital tools and data, these companies choose to put ever more money into traditional advertising media.
Seems they’ve worked out for themselves that online businesses need offline advertising, and they especially need the extraordinary brand-building powers of TV”
Peter Field and Les Binet; News and Opinion, Thinkbox April 2019