TV inflation and the rise of the multi-channel approach
COVID 19 has bought about numerous changes across all aspects of life, with the advertising world being no exception. TV advertising saw huge deflation at the height of the pandemic due to increased viewings and low advertiser demand as industries, such as travel and retail, struggled to trade.
Due to the low prices, whilst lots of companies were unable to take advantage, many established brands and new to TV advertisers enjoyed the benefits of captive audiences and cheap prices. This enabled them the purchase more advertising than ever before whilst remaining within their budgets.
Currently we have a situation where viewing figures are returning to pre pandemic levels, but advertising demand is sky high. This is because traditional TV advertisers, those that saw the power of TV in the pandemic and those returning from an enforced absence all want a piece of the TV advertising pie.
October 2021 saw a 22% drop in ITV viewings with a £28m increase in advertising spend. This created a 36% increase in price. January has seen similar with advertisers being subjected to a 34% price increases. These price increases mean that advertisers can’tpurchase as much advertising as they would have previously with the same budget and thus get less bang for their buck!
We at Mostly Media ensure efficient TV planning and buying by concentrating on ROI, considering channel demographics and making recommendations on all aspects of an advertising campaign. Due to this many of our clients are continuing to enjoy huge success’ with TV advertising and if you would like to hear more about this, please get in contact with a member of our TV team via email@example.com