The amount of time in hours and minutes that U.S. adults are expected to spend watching TV each day in 2014. That figure is down 3 minutes from 2013, but is still more time than is spent with any other single medium.
Things that take three minutes:
Thorough brushing and flossing
Finding the dang keys
Trying to remember that dang password
Watching the pot boil
Updating mobile apps
Drop off dry cleaning
View cat video from your mom
Scan daily coupon email
Read Eicoff blog post
For advertisers who rely on television concerned over the much-ballyhooed demise of television: looks like we're good for 2014.
Mike Powell is the SVP/Executive Creative Director at A. Eicoff & Co., one of North America’s largest DRTV agencies.
Advertising industry outlooks for 2014 are filled with buzzwords like programmatic buying (behavioral targeting, retargeting, etc), Facebook and social media, mobile advertising, digital video, and of course main-stay search marketing. Emarketer, one of the leading market research sources on digital media estimates these and other digital channels will reach $47.6 billiondollars for the US in 2014. That represents nearly 25% of all media spend for next year, $177.8 billion.
Receiving less attention is a different number: television advertising will reach $68.5 billion next year. Radio is expected to reach almost $16 billion. Combined, television and radio media spend in 2014 will be more than $36 billion or 75% higher than digital! TV and radio account for almost 50% of all US media spend. (Print and out of home accounting for the remaining 25%).
WPP’s Group M has a slightly more aggressive forecast with US TV media spend of $78.8 billion (out of total media spend of $161 billion). Industry forecasts show a 2.5% - 3% increase in television spend in 2014.
Emarketer’s forecast for 2017 (the latest year available) still shows TV spend exceeding digital by $14 billion and year over year growth for every year through the end of their forecast.
An interesting side note is the hottest growing trend in digital media: video! Emarketer estimates digital video spend to increase almost 40% to $5.7 billion in 2014. Within the growing field of digital media, the channel that is growing the most is in fact an offshoot of television.
While digital media is growing, television advertising continues to grow as well. And for the foreseeable future, media spend from television will far exceed the media spend from digital channels. That makes Television the biggest trend in advertising for 2014.
Jeffrey Fine is Director of Analytics at A. Eicoff & Co., one of North America’s largest DRTV agencies.
Eicoff clients are showing growth in more areas than just DRTV. Vivint, the leader in home automation services, was ranked #2 in the country for job growth in Inc's 2013 Hire Power awards. Vivint created 1,943 jobs over the last 18 months. Bravo!
Clients, potential clients, even friends and relatives are curious. They’ll ask us, “Isn’t the internet hurting your business?” “Doesn’t online ad spending eat up the TV budgets”? “Who’s got time to watch TV?”
Truth is, television is still king - no doubt. Sure, they’re on the internet, too. Who isn’t? And as we’d expect, the amount of time spent online is growing, too.
That means we spend almost 20% of our day watching television! And the numbers are even higher for the 50+ market. Staggering statistic – especially considering the number of hours Americans spend at an office with internet access. And sadly, no TV.
There’s no question TV is still the best and broadest way to reach your audience.
In a time where consumers are constantly demanding video content yet some can’t wait to click the “skip ad” button after a few seconds online, we find it quite exciting to know that TV advertising is heading in the opposite direction. According to the announcement we made today, industry research and our own personal accounts have shown since 2007, spend against two-minute commercials on TV has doubled.
Why the increase? The reason is quite simple, it works! One might say that it’s because CMO’s are being held more accountable or the industry is realizing that not only can you build your brand with DRTV, but you are likely to get a stronger response with longer length. You would think that response rates would double from a :60 to a :120 – twice the time means twice the response at best right? When done correctly - and there’s a need for two minutes to tell a story and engage the audience - then response is indeed significantly higher. The more time spent explaining the benefits of a product or service to a consumer audience, the more time to capture the call-to-action…and less time for other advertisers during the commercial break.
You can learn much more on the data behind these claims and how consumers are responding to TV offers in today’s announcement.
In a time where consumers are constantly demanding video content, but less is typically more, we think the announcement we plan to make next week will surprise you. We’ve said for a long time, two-minute commercials are king. And, the data we will reveal – from industry research firms Kantar Media and Experian Marketing Services, along with Eicoff’s own business momentum - proves it. Marketers are spending more now than ever on two-minute ads. How much more you ask? Ten percent, twenty-five percent, fifty-percent more? Be on the lookout for our announcement early next week for all of the details. The release will also include interesting facts about how consumers are responding to TV offers and just how much they’re spending online as a result.
In Sunday’s Tigers vs. Giants World Series telecast, Quicken Loans Opportunity: Made in Detroit campaign was launched on the national stage with a 60-second spot featuring the voice and music of Detroit’s own Kid Rock.
The spot showcases Detroit-based businesses past and present that are making downtown Detroit the comeback story of the nation. The 60-second spot was produced internally by Quicken Loans, and coordinated with Major League Baseball, the Tigers, Comerica Bank and the Detroit Symphony Orchestra.
According to the Opportunity: Made in Detroit website, this is just the start of a major campaign to show the world what is being created in Detroit – “an explosive high-tech corridor located at the intersection of muscle and brains”.
It was with some sadness the other day that I read the article below regarding the demise of Google TV. Sad because there are some really great people there at Google that tried to make this work. Intentions were good and the energy was never lacking (Full disclosure: Eicoff was one of Google's primary agency consultants when developing Google TV. We helped them build it).
I have to say that while I was sad, I was not surprised.
The demise of Google TV is one more example of whoever controls the content is king. Google TV eventually evolved to become a re-seller of media time for Dish Network, NBC and other niche cables. The perceived value of Google TV's auction/analytic model wasn't nearly high enough for agencies and clients to justify paying a higher rate than they could obtain directly from the station itself.
It became apparent early on that unless Google got into the content business (which they did, to a degree, purchasing You Tube about the same time), they were going to have to rely on others to provide the content. I would suggest that at this point the model was doomed.
I have many friends in the media sales side of the business. And while many of them have had a few tough years, I constantly remind them that while ratings may be lower, they still control a vast number of eyeballs that can't be reached in any other fashion.
Google TV -- a reminder that the integration of technology and television will be an evolution, not a revolution.
In her money.cnn.com article The TV Ad Is Long From Dead Katherine Ryder writes, “Despite the promise of digital advertising, many ad execs still believe that the best way to captivate an audience is the 30-second television spot. Take, for instance, Chrysler’s Super Bowl ad this year.” She concludes the paragraph with “How can a banner ad compete with that?”
I couldn’t agree more. However I’d like to take her thesis one step further. The spot she refers to was spectacular, compelling, and…two minutes long. A :120 in DRTV parlance; a “Deuce” according to the Eicoff lexicon. Long enough to communicate the entire idea, rather than see how much could be squeezed into 30 seconds. Or, heaven forbid, 15.
To put a finer point on it: TV itself isn’t going away – but traditional :30 and :15 spots are looking more and more like dad with his hat on backwards at Coachella.
Don’t get me wrong, there are still going to be plenty of :30s and :15s on TV, and many of them will do their job of generating brand awareness and entertaining the masses. Personally, I love a good thirty-second spot. But in a world that’s increasingly focused on measurement and ROI and what-have-you-done-for-me-lately, many clients want – make that demand that their advertising does more.
In the spirit of advertising that works harder, Ms. Ryder goes on to describe a world in which viewers can buy the product advertised right then and there, or at least learn more about it.
That’s what Direct Response Television has been doing for years. (And in case you’re thinking that the toll free phone number has become passé, Nielsen states that viewers are on their phone 20% of the time that they’re actually in front of the TV, so….) The DRTV world is evolving, of course. We’re constantly evaluating new innovations and taking advantage of opportunities when they make sense for our clients.
Yes, Virginia, the TV ad is alive and kicking. TV’s not going anywhere. And as for the “exciting, new” concept of creating advertising designed to incite viewers to take action, well that’s what we do every single day.
Mike Powell is the Executive Creative Director at A. Eicoff & Co., one of North America's largest DRTV agencies.
To view Katherine Ryder's full article, please click here.