Local television advertising is now even more effective then before

Now, more then ever before, local television has become the most cost-effective form of advertising. Some people are falsely led to believe that television viewership is decreasing, however they could not be more wrong. In fact, a recent Nielsen report showed that television viewership has actually increased since last year. Let's look at the facts. More then 99% of American households own a television, and 86% of all American households watch cable television.

Should you be worried about DVRs (Digital Video Recorders) like TiVOs? No. Only about 17% Americans have DVRs. Nielsen's study is the first to look at how many DVR users actually watch ads. The data suggests that about 50% of DVR owners skip ads. This means out of 264,472,157 people that watch local cable television ads, about 22,480,133 skip them. That's only a marginal 8.5% that would skip through your ad. What is even more interesting is that Americans are now watching television almost 5 hours a day, and many Americans are watching television on bigger sets in high definition.

The poor economy has given advertisers with cash flow an advantage over their competitors. Television advertising revenue has already dropped by 13%, and both local and national television stations are scrambling to acquire new advertisers just as many small businesses are trying to find new customers. Television stations are offering more spots for a much lower cost then ever before. Ad agencies, such as Tonangi Media, have already negotiated better rates with most partners. These cost savings make it more attractive to advertise on television exactly at a time when television viewership is growing. 

If you are interested in advertising your business on television please visit www.tonangi.com for more information.

 Vinod Tonangi | www.tonangi.com | phone: 201.252.7265 | fax: 619.566.4043

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Comments

[Jenny Mathis]

I would have thought more people have DVRs now, that's interesting. I was a minor in mass comm. so stats like these always interest me. Considering the effect DVRs have on commercial watching and how it doesn't look so bad, kind of puts those lawsuits or threats of lawsuits against DVR companies by the broadcasters in a different light. It made me laugh, too, because my family always had a VCR so we recorded shows and fast forwarded through commercials all the time. DVRs just make it easier. We should not be forced to watch commercials if we don't have to. But 8.5% is still something, and with the economy bad it's not surprising to see TV ad revenues had dropped. I guess if I start my own business sometime, I will surely consider local TV advertising as the cost just keeps getting more affordable from what I see in this article and what I'v heard elsewhere.