TV is Dead, Long Live TV

Editor's note: This post is part of the LinkedIn Collective, designed to inspire excellence and success for all B2B marketers. The Collective offers groundbreaking thought leadership and content resources informed by LinkedIn data and insights, our team of experts and leaders across the B2B marketing industry.

I have no doubt that TV advertising works.??

“They’re magically delicious.”?

“It’s gotta be the shoes.”?

“I’m a Mac.”?

And one last one, close to my heart, even if I have an issue with the order of the list: “Army, Navy, Air Force, Marines.”

Those tag lines from television commercials—ranging from my childhood to my time as a naval officer to my current role at Innovid—have stuck with me over the years. More importantly, they have influenced how I perceive brands and make purchasing decisions.?

I’m sure it’s the same for you. Dozens of TV ads, some last viewed decades ago, still reverberate in your mind and impact what you buy. “A diamond is forever.” “Tastes great, less filling.” “Intel Inside.”

I’ll repeat it: TV advertising works. And it’s about to get even better. Read on, and I’ll explain why I think that’s the case.??

Eyeballs are moving to digital TV?

We all know that TV is changing. One hundred percent digital TV, led by the rise of connected TV, will be a reality by the end of the decade, and maybe even sooner. Last year 51% of TV advertising impressions were via connected TV, according to an analysis of Innovid’s 330 billion impressions in 2022. That percentage will only continue to grow. In many ways, 100% digital TV is already here, with massive viewership shifts to Netflix, Amazon, Hulu, and Disney+.?

What’s often overlooked is how this transformation represents a massive opportunity for marketers of all stripes to make their TV advertising even more effective.

Let’s look at how quickly the shift is occurring to connected TV viewing, which includes streaming platforms ranging from Netflix to Roku. Currently, more than two-thirds of Americans watch connected TV, according to eMarketer. Connected TV viewership is projected to have jumped more than 100% between 2019 and 2024, with connected TV viewership reaching 2 hours, 3 minutes per day, only slightly behind linear TV viewership of 2 hours, 48 minutes per day.??

Beyond the numbers, here are just a few examples of the shift that illuminate just how fundamentally transformative television’s move to digital is:

• Advertising-based video on demand continues to surge, with over half of all U.S. Internet users projected to use AVOD services this year.??
• The growth of free ad-supported streaming TV (FAST) is exploding, with three services—Local Now, Plex, and Roku—each offering more than 400 channels, according to Variety.??
• Major streaming platforms will contract for major sports leagues television rights, meaning that soon the games you want to watch won’t be available on broadcast or cable.?

TV advertising’s huge 100% digital opportunity

Let me repeat: there’s no doubt that TV advertising is effective. That’s why advertisers spend nearly $150 billion globally on TV advertising every year.?

Historically, measuring how individual TV spots perform has not been easy. Advertisers have used blunt instruments to approximately measure effectiveness. They’ve used gross rating points. They’ve tracked calls to 800 numbers. They’ve measured product sales (but only months after the ads had aired—and far too late to optimize a campaign).??

Thankfully, that inability to gauge TV advertising performance is fading fast as the medium transitions from over-the-air to cable to 100% digital. TV advertising on digital formats will be more effective and engaging as a result, I guarantee it.?

As platforms and publishers gain more insight into their audience and can serve ads directly to desired audiences, TV advertising will be more targeted, which is why B2B marketers can partake more often and more effectively.?

Secondly, advanced, interactive creative executions, enabled by connected TV, work—and my company, Innovid, has the data to prove it. We found a 600% lift in consumer engagement with the advanced creative work and optimizations that connected and digital TV enable.??

As a result of the improved customer engagement and impact, big dollars will be spent on connected TV. Ad spending on connected TV is projected to reach $40.9 billion by 2027, according to eMarketer. It could grow even larger faster. We’re not talking about some far-off future. We’re talking about right now, today.?

The technology and the data that enables you to reach and engage your audience, better measure and optimize your advertising, and better drive the business results you aim for already exist today. This transformation is being made without compromising the privacy of viewers.?

There’s a massive evolution happening with the rise of digital and streaming TV. The 100% digital future of TV isn’t coming. That future is already here. And consumer and B2B marketers alike can take advantage by creating an indelible TV experience that will resonate with their specific audience for years or even decades to come.? ? ?

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