Juan M. Muñoz. CEO Artichoke
Reading: 3 min
BRANDS ARE COMING INTO MASS ON TV IN THE USA
The company iSpot.tv, which does real-time tracking of every commercial broadcasted on national television in the US, has conducted a study of the brands that are advertising during the confinement by the COVID-19. The data indicates that almost 26% more advertisers, 1,247 more, are advertising on TV today compared to a year ago.
The study on iSpot.tv starts on March 14, the first Saturday without live sports broadcasts due to the pandemic.
Between this day and April 12, 2020, 6,126 different brands were announced. In 2019, during the same date range, 4,879 brands advertised on national TV networks.
As in Spain, in the USA, confinement has brought more TV consumption. Therefore, there are more GRPs (more inventory of ads to sell); on the other hand, the stoppage of live sports (the football season is over, but not basketball, soccer, hockey, boxing, tennis, golf, etc.) has made a large part of the high-priced inventory available, the one that generates large audiences. That is, suddenly there are many more ads available and at lower prices.
There is something else. The networks, even before the pandemic, had already started making offers to attract new advertisers (those with less budget), to compete with digital giants Facebook and Google.
In essence, TV has become very attractive to brands: Prices have fallen and audiences have risen. What more could we ask for? “Maintain quality,” might say an advertiser. Well, we have that too: There is no ad saturation since in general, investment in TV has fallen. There are more advertisers, but the average investment per brand is lower. Networks have lowered the prices, but they have not thrown them away. It’s about giving a good product to regular advertisers and new advertisers, so they sell a lot and stay on TV.
Some networks, like AMC, have gone further. This network that includes BBC Americas, Sundance TV, among others, has offered new formats and free creativity and production services to brands that join their programming grid during the pandemic.
Many new advertisers (1,247 to be exact) have been able to access TV in the USA at a key moment for their business and for the country’s economy. Audiovisual content is the format that generates the highest returns, and TV the medium that offers the most reach. Advertisers here have seen it fast. It is a textbook opportunity.
It is time for the braves… who have read the book.
Cheers, and take care.
P.S. I write these lines on April 23, the anniversary of the death of Cervantes and Shakespeare, the World Book Day.