27 February 2017

Online businesses embrace TV advertising

According to Thinkbox – the marketing company behind commercial TV in the UK – TV ad revenue has risen yet again in the UK. Its 2016 annual review suggests total revenue is in the region of £5.27 billion (€6.21bn), up 0.2 per cent on 2015. This figure represents multiple formats including linear spot and sponsorship, Broadcaster VoD, and product placement – proving advertising remains one of the most prolific monetisation models on the market.

 

Further research from Nielsen found that online businesses – including brands such as Amazon, Confused.com, Facebook, Google, Just Eat, Netflix and Purplebricks.com – invested a total of £639 million in TV. The biggest spenders were Amazon (£34.3 million, 39 per cent up from 2015), Comparethemarket.com owner BGL Group (£38.8 million, 4 per cent less) and Moneysupermarket (£25.9 million, 6 per cent up).

 

The top five categories for advertising spend were:

1. Online businesses: £639 million (8 per cent up year on year)

2. Food: £627 million (10 per cent down)

3. Cosmetics and Personal Care: £439 million (3 per cent down)

4. Entertainment and Leisure: £419 million (no change)

5. Motors: £314 million (2 per cent up)

 

Lindsey Clay, Chief Executive of Thinkbox, states: “TV is a trusted environment for brands. It is a place they want to be seen, where they can rub shoulders with high quality shows that are important parts of people’s lives. Its trustworthiness and quality are two of the reasons why TV is the most effective form of advertising.”

 

“TV advertising creates huge effects instantly as well as building and maintaining profitable brands for the long-term. For online brands in particular, which have little or no physical presence, TV’s ability to create emotional connections with large audiences is vital. It helps make them feel less virtual and more real.”

 

With significant increases in advertising spend on last year, it suggests the rise in multiscreen online TV viewing via services such as catch up has fuelled the need to increase investment to target the online ‘millennial’ audience. Marketing Chart’s ‘Advertising channels with the largest purchase influence on consumers’ report states TV adverts rank the primary purchase influencer among Millennials – targeting this audience via non-traditional TV viewing platforms can be a challenge for broadcasters, let alone inexperienced corporates such as telecommunications companies that wish to embark on a TV journey. For those new to the TV space, an IPTV platform such as Perception eliminates the need for dedicated expertise and can be monetised with an advertising model.

 

To find out more about the Perception platform contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

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Sašo Todorović, CEO, T-2

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