Q Thoughts

What Does Dwindling TV Ad Spend Mean for You?

Beautiful Chinese lady working on laptop at home

The Times They Are a Changin’. But don’t just take it Bob Dylan; you too are a part of the now.

It’s ultimately you who’s in the driver’s seat – or at the very least a willing passenger – within the vehicle of change, paving the way to transformation through participation and action (or lack thereof). Admittedly, we’ve always had a thing for TV, for the thrill entertainment from the comfort of our own home, but our favorite pastime is evolving in form – with television ad sales in steady decline.  And that’s not necessarily a bad thing…not to mention, it’s dictated by our very own wants.

According to a new forecast by Interpublic Group’s Magna Global, “TV will account for 38.4 percent of the $503 billion global ad market this year and will drop to 38 percent of the market in 2016.” You’re more likely than not already aware of this, so I doubt this is much of a surprise. The underlying takeaway here, however, is the importance of staying ahead of this trend, spending your ad dollars where the eyes are. So where is everyone looking? You guessed it – it’s where you are now: online.

Magna Global predicts that “digital ad spending will grow 17.2 percent this year, to nearly $160 billion, and 13.5 percent in 2016, and is expected to overtake TV as the biggest advertising category by the end of 2017.” Moreover, GroupM’s biannual global ad expenditure forecast found that while TV traditionally comprised 44% of global ad investments, that reached its peak in 2012 and has shed about a point per year. But why? It turns out there’s a little more to the shift than our eyes would have us believe.

Programmatic advertising (or the use of advertising software to purchase ads online using defined criteria in real-time) continues to top the list of solutions for purchasing digital media must-haves. With programmatic software, the advertiser has access to in-market audience data, allowing advertisers to display ads to the right customer, at the right time, automatically in the back-end. Thus programmatic’s popularity is largely attributed to its logical existence; We The Audience are online, so why not put our data to use and customize our experience for enhanced campaign performance and increased brand visibility? It’s really a no-brainer, and a validating reason for this blog.

ownerIQ’s fully integrated programmatic stack provides the right combination for truly impactful digital advertising. The solution gives advertisers the power to reach shoppers with programmatic video ads across all devices (mobile, tablet, desktop), a well as social channels like Facebook – aka what we’re all using today.

Learn more about how you can benefit from ownerIQ.


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