Where To Place Advertising Dollars: TV Advertising or Digital Video ?

Forrester’s Forecast View Model predicted towards the end of 2014 that 36% of the entire U.S. ad spending will be represented in digital forms by 2019. On the contrary, the U.S. TV ad market is still growing faster than digital video, according to a 2014 eMarketer report.

As we see some of the big brands redirecting their advertising dollars from TV to digital platforms like Facebook and YouTube, researchers suggest that this trend may be penny wise and pound foolish. A study made by TiVo has shown that at least 15 big brands that had redirected their commercial money from TV ad spend to digital world have seen decline in their sales numbers. The study insinuated the idea that if a brand would cut down money on its TV ad spends; it will surely witness a decline sales. According to the data released in the TiVo press release, the brands that spent $3.1 million less on average on TV ads witnessed decline of $8.6 million in sales.


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Experimenting with the marketing mix is definitely welcome, but maybe not at the cost of losing sales. Marketing departments and their agencies may do well to continue investing in quality commercial production and TV placement. TV commercial production companies in NYC need to encourage brands to deliberately choose television advertising over digital video advertising, which still has time to mature. This is still not the right time to expect comprehensive customer experience by investing big time on digital platforms alone.