bull-case-tv-2022

The Bull Case For TV Advertising In 2022

Brands constantly seek to reach new audiences, but many of the established methods for doing so are becoming less effective. 

It’s certainly not uncommon in the world of direct-to-consumer marketing, for new trends to rise and fall. Only time will tell if this latest shift in the landscape is one for the ages, or just the most recent example of innovation volatility.

Below I have outlined three forces that we feel have changed the environment for brands and resulted in a bull case for TV in 2022.

Paid social and the end of the cookie

For the best part of the last decade, social media has been lauded as the go-to destination for direct-to-consumer brands to find, discover and delight audiences online. 

More recently however, you may have noticed a shift in the landscape. Once hugely popular, the efficacy of paid social is beginning to wane, and Meta properties in particular seem to be disproportionately impacted. 

We’ve long told clients that building your brand exclusively on social, is akin to renting on someone else’s turf, and sadly this seems to have been proven true… at least in part! 

Apple’s efforts to protect user privacy in both iOS14 and 15 have cost Meta vast sums of money and even Google has promised to banish cookies from Chrome in 2022, 2023 or 2024, whenever they feel like getting around to it.

A distributed workforce

It’s too soon to have anything other than anecdotal evidence, but it would appear that the pandemic has left an indelible mark on the way we work. 

A distributed workforce is here to stay and for the most part, both business owners and employees seem happy enough with a hybrid model.

Consequently people continue to stay at home. In this situation we need to look at how habits around the usage of mobile have changed through the pandemic.

As evidenced in Jonathan Stringfield’s excellent article in Adweek back in October of 2021, second-screening is the idea whereby users simultaneously use their mobile devices in tandem with their TV consumption has remained a constant amongst all demographics. 

Cost of living crisis

Finally, the arrival of the new tax year means increased pressure on the family wallet, compounding everything from inflation, to increased energy and water bills. Not to mention increases elsewhere, such as water, national insurance and council tax.

With this in mind, the viability of subscription video should be called into question. As Ian Whittaker observes in this article for the Drum, ‘major players have made a wrong move jumping into subscription models’.

According to research by Ian Whittikar’s consultancy firm, Liberty Sky Advisors, the ad-supported sector grew by 18% in Q4 2021, up from 8% in Q4 2020. The shift to ad-supported is demonstrated by the likes of PeacockDiscovery+ and Paramount launching ad-funded options to their streamers.

I would expect streamers to continue to attempt price rises, however it is reasonable to conclude that ad-supported tiers will become more amenable as the cost of living crisis deepens. 

Not ready to take our word for it? check out this video from The Trade Desk’s CEO Jeff Green talking about The ‘Rise of Ad-Funded Streaming’

The future is integrated

Not to be misunderstood, I’m not suggesting brands need to adopt an either/or philosophy when considering TV vs Social. Evidence continues to suggest that integrated campaigns deliver optimal results on everything from brand recall to increased conversion rates.

If you’re considering getting your brand on TV, why not follow me on Linkedin or attend one of our events.

Introducing AIG 

Cem Aytceli

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This Is Paris

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KEO Beers

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Coors Light

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Bring Nature Inside

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