The Truth Behind Six Big Advertising Myths
In the past 100 years or so, advertising has evolved drastically. With the advancement of TV, digital and mobile advertising there are even more ways to deliver the right ad to the right target. But with the rise of more technology comes an increase in misinformation. Here are the top myths about advertising today… and the truth.
Myth 1. TV advertising is dead.
TV advertising is just as effective as it always has been, with millions of people still watching TV in their spare time. According to Nielsen, the average American household in 2018 watched nearly eight hours of TV per day! That is a lot of opportunity for advertisements to reach them. TV advertising is a key accompaniment to digital advertising.
Myth 2. Multiscreen advertising is too complicated.
It doesn’t have to be. With a one-stop shop like a4, TV and digital advertising can be delivered to consumers on any device they are using. a4 partners with 11 of the top 12 internet service providers in the U.S. and maps U.S. Postal addresses to IP addresses. This enables a target audience to be constantly refreshed with the most up-to-date data. Using an advanced planning and activation tool like Athena allows advertisers to choose their budget and target audience in one place.
Myth 3. Local market targeting is ineffective.
Developments like geo-targeting and geo-fencing allow advertisers to target local areas efficiently. Advertisers can choose to reach an audience that frequents their competitors’ locations, or simply anyone in the region where they are located. Tailoring ads for the local market make them more effective.
Myth 4. Paid advertising is pointless.
Many people think sponsored ads and content is ignored. But Google generates $30 billion per year in online ad revenue with sponsored ads. They do work. Targeting the right audience is key, however. On social media make sure to target people who are most likely to be receptive to the ad. Zenith predicts that two-thirds of all the growth in global advertising expenditure through 2020 will come from paid search and social media ads1. And according to Dedicated Media, native ads are viewed 53% more than banner ads2.
Myth 5. It’s not worth investing in advertising.
It’s actually a very good investment… if you choose the right partner. With a company like a4, ROI is increased significantly. The U.S. Small Business Administration recommends spending 7 to 8 percent of a business’s gross revenue for marketing and advertising if they have $5 million a year in sales. Most marketers recommend between 1 and 10 percent. Advertising pays off if it is high quality and created for the right audience.
Myth 6. Cord cutting means TV advertising is stagnant.
With the rise of over-the-top (OTT) systems like Netflix and Hulu, and connected TVs (CTV) like Apple TV and Roku, TV advertising is becoming even more efficient than ever before. Consumers can be targeted on the programs they watch, even if they aren’t watching traditional cable TV. According to PQ Media’s Global Advertising & Marketing Revenue Forecast 2018-2022, product placement in OTT video advertising are projected to post double-digit gains3.
References
[2] https://blog.hubspot.com/marketing/horrifying-display-advertising-stats
[3] https://www.pqmedia.com/product/global-advertising-marketing-revenue-forecast-2018-22/
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