Love or hate TV adverts, viewers could be seeing a lot more of them soon. The government is reportedly in talks with broadcasters on the possibility of increasing the amount of advertising minutes on public service television. In a bid to compete with streaming sites, broadcasters are pushing for the cap to be lifted on how many ads can be shown per hour of TV content. It is currently set during non-primetime screening at seven minutes per hour, but that could all change under new rules being considered by the Department for Digital, Culture, Media and Sport (DDCMS).
The move would be welcomed by broadcasters whose advertising revenue continues to come under pressure from online rivals including Google and Facebook. Advertising revenue is increasingly migrating online to some of the biggest social media giants. In fact, ITV reported a 5 per cent decline in its ad revenue just last month. The most recent cross-industry figures show TV advertising revenues across Britain as a whole fell by 3.3 per cent to £2.4bn in the first half of the year. Meanwhile, Ofcom report that viewers are complaining more about the length and frequency of ad breaks. It is feared that lifting the current cap on ad breaks could frustrate audiences and cause viewing rates to drop.
The current advertising climate is in flux. Many brands opt for online as it’s a lot easier to tailor ads to reach a specific audience. But there are of course other factors to take into consideration. On social media, you are fighting to be heard among a lot of noise and stopping avid scrollers in their tracks is a challenge, so great content is a must. With TV adverts, you are one single ad on a large screen. The stage is yours.
There’s no telling how things will change, whether the cap on ad limits will be lifted and if it is, whether it will actually be effective in boosting revenue. For SMEs and entrepreneurs, there’s no need to worry – simply stay on top of the current climate and ensure you have an understanding of your market audience and their needs. Every form of advertising has its pros and cons and there is not one correct method for guaranteed return on investment. Society is becoming increasingly data-driven and it could be that the future of TV advertising lies in a better matching of ads tailored to specific audiences. If you’d like to discuss your advertising and marketing strategy, get in touch with the team at Only Marketing today.