We now know that people have been watching less and less linear television for years. What not everyone knows is that, strangely enough, this goes hand in hand with a considerable increase in the price of advertising. The costs of advertising on TV have risen the fastest by far compared to all other media channels. Advertising on TV has become no less than 50% more expensive over the past 5 years (GroupM quarterly report Q2 2022). At number two is radio, which in the same period experienced a price increase of 22%; less than half of the price increase on TV while the reach and impact of television is decreasing. The big question is: does the price still represent the value of the TV ad?
That Gen Z and millennials are exchanging classic TV viewing for more modern forms is no secret. According to the recurring Great Youth Survey (2022) by Mediahuis, Wayne Parker Kent and independent research agency MediaTest, Gen Z only watches 18% of total viewing time linearly, a decrease of 6% compared to the previous survey (2020).
Gen Z does not view the future of linear TV viewing very positively. More than half of Gen Z falls under the category of light television viewers (NOM, NPDM 2021.) This means that they watch a maximum of 1 hour and 23 minutes of linear TV per day. This makes it a difficult target group to reach with a television commercial. But this is a very attractive target group for advertisers.
Despite the strong decrease in viewing time and the fact that half of Gen Z and millennials often watch streaming services or other online videos (NOM, NPDM 2021), there is a great demand for TV GRPs. Looking ahead to the always busy autumn, a decrease in viewing time and difficult to reach target groups, there will undoubtedly be delivery problems on television. This will force advertisers to look at alternatives. Think of online video possibilities. Online publishers can be of great help here. Within Mediahuis we have looked at our reach among light TV viewers. With its digital network, Mediahuis reaches no less than half of light TV viewers in the Gen Z and millennial target groups (NOBO, Q1 2021).
All in all, it comes down to the fact that advertisers are forced to look for alternatives to the analogue TV spot. This is simply due to the inability to reach all target groups, the decreasing viewing time and the considerable price increase. As an advertiser, it is important not to remain fixated on the traditional possibilities, there are plenty of alternatives…
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