MKTG600 discussion and discussion responses
Can you help me understand this Marketing question?
This is a two part questions. First I will need the discussion question answer which will be below in bold, 300 words APA format. For those response I will need three responses of at least 150 words each.
Is TV advertising still the most powerful advertising medium or has it faded in importance?
Some believe that TV advertising is too expensive and not as effective as it used to be. These critics believe that many consumers tune out the ads, therefore, it would be difficult for the advertisement to make a strong impression. However, there are some that believe TV advertising is just as good, if not better, that other media advertising options (Kotler & Keller, 2016).
TV is still one of the most powerful advertising mediums. TV advertising is highly targeted, measured quickly, and optimized in-flight. Just like everything else, TV is changing and it still dominates the media consumption. Even though consumers have cut back on the amount of time that they watch television, it is not by much. The delivery and the consumption of the content shown on TV has just shifted drastically. Also, with the upgraded technology, TV advertising is able to drive consumers into a prospective customer journey directly via their digital devices. This allows consumers to respond to a TV ad in an instant. Therefore, this allows the advertisers to collect real-time data sources from their TV campaign strategies. The accurate, real-time analytics that advertisers collect give them a competitive edge and gain momentum when building more effective campaigns (Gulick, 2018).
GEICO is a good example of how television advertising has worked and still is working for them. The company has spent hundreds of millions of dollars for advertising on TV. Over the past decade, GEICO has quintupled its revenue; going from a little under $3 billion in 1998 up to over $17 billion in 2013. This has made them the fastest-growing auto insurance company in the U.S. GEICO presents very creative and award-winning ad campaigns that emphasize the different aspects of the brand. The basic message of the company sells directly to consumers with “15 Minutes Could Save You 15% or More on Your Car Insurance.” The campaigns complement each other well and build on the success of each other. Their car insurance messages dominate the airwaves with many auto insurance messages, therefore, it has caused the ads of their competitors to become lost (Kotler & Keller, 2016).
Gulick, D. (28 August 2018). Here’s Why TV is Still the Most Powerful Ad Medium. Retrieved from https://www.smartbrief.com/original/2018/08/heres-…
Kotler, P. & K. L. Keller. (2016). Marketing Management (15th ed.). Boston, etc.: Pearson.
TV advertising is not the most powerful advertising medium anymore. The new advertising giant is digital media. “Although TV ad revenue increased, digital ad revenue rose by 16.8%, more than double TV’s uptick.” (Wolk, A. 2018, p.1) One of the reasons why digital is taking over is because in the digital world as a person is looking at social media there can be many advertisements on one page. The advertisements can also change many times to different ads that display. Ads that are showing on digital media are also geared more to what that person is looking at. For example, if somebody was just looking at Blue Running Sneakers they may get an ad that keeps popping up every time they turn on the computer or scroll to a new website of the same sneakers they were searching for. They may even be offered a coupon for those sneakers they were just searching for.
Today kids do not even watch regular TV they binge-watch Netflix, Hulu, or some other streaming service which usually does not even have commercials. The other disadvantage of TV advertising is that some people use some sort of DVR. They then will start watching a TV show after it has run for twenty minutes only so they can fast forward through all of the commercials. Unless the TV executives can find some way to force viewers to sit through commercials TV advertising will keep falling to second place to the new and upcoming digital wave of marketing.
Wolk, A. (2018, March 1). As Television Gets More Digital, TV Advertising Needs To Follow Suit. Retrieved from https://www.forbes.com/sites/alanwolk/2018/03/01/a…
Advertisements surround us, in both digital and printed forms. Organizations must carefully select which media they will market their products in, based on their targeted audience and how much they are willing to spend to do so. According to Heinig (2018), the seven most influential forms of advertising currently, in no particular order, are television, mobile devices, video, e-mail, search engines, podcasts, and retargeted advertisements. Search engine advertisements appear when certain keywords are entered, while retargeted ads then follow a customer from one website to another based on their browsing history, such as when something appears on their Facebook account after searching for it in Google. Television has been the most dominant medium, but changes in technology are constantly trying to challenge that title.
While the average American watches upwards of five hours of television per day, they also interact with their mobile device for approximately the same amount of time. The way they watch television has started to change though. There is an increase of digital video recorder (DVR) usage and of streaming services, which allow the viewer to skip commercials or eliminate them altogether. However, when watching traditional television, it is very difficult to avoid the advertisements as they are embedded within the show. They also appeal to a customer through sight and sound, which increases one’s ability to remember it. Internet and e-mail advertisements are often visual only, while podcasts are only auditory, and neither are as informative as a television commercial since they are of shorter duration and can immediately be closed by the viewer/listener. Studies have also concluded that consumers feel as though television advertisements are the most trustworthy, since they are aware of how expensive this type of marketing can be for a business. For example, thirty seconds during the Super Bowl can cost several million dollars. Posting something on a social media account is considerably cheaper for a business, if not free, so customers think that this could lead to less reliable information and products. Television is trusted by 61% of consumers, while social media can only claim 38%.
Companies care about building trust and brand equity, but when it comes to advertising, they also clearly care about a return on their investment. In one consumer survey, it was found that after seeing an advertisement on television, about 60% of the viewers may purchase it. Print and online media only led to purchases by approximately 45% of viewers though. Advertising is also influential depending on who is seeing it. Younger people and those who earn higher salaries are more likely to buy something new they see advertised, since older customers have already established their preferences and lower income individuals may not be able to afford to do so.
Based on the sales data and surveys, television is still the most powerful form of advertising. As technology continues to evolve and become cheaper though, and the younger generation continues to utilize more internet based services, it is likely that television advertisement will slowly lose some of its marketing share. It is evident though, that for a business to be successful, it should consider advertising through multiple forms.
Heinig, I. (2018, February 7). The 7 Most Influential Advertising Mediums for 2018. Retrieved from The Manifest.
Kotler, P., & Keller, K. (2016). Marketing Management. Pearson.