Advertising is facing the dawn of a new era:
We are seeing an increase in online ads proliferation and more and more of the marketing budget allocation. New advertising heavyweights have sprung up, while long-established stakeholders are losing importance. This transition is structural and appears to be ongoing. The key question is not whether advertising will change, but how radically it will.
Well, it feels like Television is finally on its way out, and television advertising alongside it. Or so they say. Let’s think, about it. With social media ads, TV networks have never faced more competition for advertising spend. Meanwhile, subscription services like Netflix have proven that ad-free TV can be a super profitable model.
Is TV Advertising Dead?
A PwC report projected Nigeria’s total advertising revenue at $483 million (N193 billion) in 2020, with the internet accounting for 20.5% of the total. The study revealed that although television advertisement will remain the ad leader in Nigeria by 2023, internet advertisement will outperform TV ads in terms of net additions (Nairametrics, 2021).
In 2020, $275 million was spent on traditional television advertising in Nigeria, a decrease of around $26 million compared to 2019. The majority of the money was spent on digital terrestrial advertisement at around $191 million (Statista, 2021).
The Statista Advertising and Media Outlook estimates that the money spent on traditional television advertising in Nigeria will continue to increase and reach around $323 million in 2025.
Also, the Nigerian government is anticipating significant growth in its media and TV production sectors as a result of the shift to digital TV.
CONCLUSION?
No, TV advertising isn’t dead. It only becomes digital and gets larger with the addition of OTT. This shift opens a new world of advertising opportunities to Innovative Marketers. In fact, according to one panel of experts, we are just now entering the “Golden Age of TV Marketing”.
How does product placement work?
Product placement works by featuring items and services outside the context of traditional ads. When a TV commercial block appears in the middle of a show, or a banner ad appears at the top of a website, people understand they are viewing traditional paid advertising. But when people watch a carefully placed paid promotion, they may not even realize they’re viewing a piece of advertising. Whether the audience realizes it or not, the product’s visual placement is intended to capture a viewer’s attention and influence their future buying decisions. Here are some ways that product placement shows up in the advertising industry:
TV and movie placement.
This form of product placement offers visual placement in movies and television shows. Prominent characters may be using a particular product or service, even if it’s never called out by name. The TV show 30 Rock turned product placement into a joke by turning the model on its head—explicitly naming the real products they advertised, and hawking fake products through traditional, “subtler” means of product placement. Social media placement.
Brands can pay a social media personality to use their products in their posts. For instance, in these paid posts, a lifestyle influencer might film a video at a particular hotel or demonstrate a makeup routine using a certain product.
Verbal placement.
A more subtle form of influencer marketing involves paying a well-known figure to talk about a product or service during the course of an interview, or even while out in public. Increased brand visibility and awareness. Like any form of advertising, product placement gets your goods and services in the minds of more potential consumers.
When they encounter your product in multiple ways—in filmed entertainment, video games, or social media posts—you gain multiple chances to make a subtle impression. Strengthens positive brand awareness. A clever placement showcases your product, but it does so without disrupting a person’s viewing experience.
The future of reaching audiences will be about adaptation as the TV family grows broader. Being strategic and using precise measurements to gauge their achievements will underpin agencies’ success in reaching audiences. The business that we drive is all based on the measurement of everything that is done. It won’t be about reach or frequency anymore, but will now be about finding the audience in the right moment within their customer journey.
Measurement: The Selling Point
As streaming and other kinds of digital video have become more widely available, the pace of change in the TV industry has accelerated, and brands and agencies should ensure that their media plans are based on the most up-to-date information. It comes down to understanding the tools available and, of course, which ones will fit your business.
The future of advertising lies in technology that leads to high customer engagement with precision targeting. They include videos with storytelling, augmented reality and virtual technology with personal targeting that will help customers stay engaged with advertising content and provide a high return of the ad spend.
All of this information only serves to crystallize the many ways which an investor can make money in the Business of Entertainment.
OPEG’s Marketing Strategy
- Advertising revenue In the entertainment segment is projected to reach US $18.71 BN In 2022.
- According to the TV industry, a general estimate of ad earnings translates to $1 per viewer.
- That means if 15 million people are watching the episode, then the network earns
- $15 million. That’s why TV shows that don’t gain a lot of viewers are usually given the ax.
- It is expected that TV advertising revenue in the United States will grow from 72.3 billion U.S. dollars in 2021 to 81 billion in 2025.
- In comparison, global TV ad revenue is projected to increase from 151 billion U.S. dollars to 162 billion between 2020 and 2024.
Jan 5, 2023 Maximizing reach and engagement through Product Placement and brand marketing When Mission: Impossible hero Ethan Hunt, played by Tom Cruise, speeds off in a car to save the world, you can usually count on seeing the black, white, and blue logo of a BMW. When Joel Goodsen (also Cruise) struts across the screen in Risky Business, he’s prominently flashing a pair of Ray-Ban Wayfarer sunglasses. These are examples of product placement in movies.
Mogapi will utilize product PLACEMENT and brands organic to the world, characters, and stories of the series.