Traditional TV Advertising is Dying, Long Live Social Media
We all know how badly TV broadcasters have been hit with TV Advertising revenues dropping, in particular in the recession. Many people have talked about how “interruption marketing” is no longer effective or profitable. So to try and alleviate the problems at ITV and other broadcasters the government has lifted a ban on product placement on television programs in the UK.
Basically what this means is that TV programs and broadcasters can be paid to include particular branded names in their programming. The only product placement that stands in my mind is in Talladega Nights during the beginning of his prayer:
I don’t know about you guys, but personally I don’t mind it. It does highlight how much people spending more time on the Internet than watching TV is affecting broadcaster profits. Social media is effectively replacing television – people can share videos on YouTube and discuss them over Twitter or on Facebook. Not only are people abandoning TV, but they are also abandoning newspapers – traditional newspapers that haven’t embraced the web are struggling – newspaper advertisements just don’t perform any more. All this goes towards growing PPC, SEO and social media – so at least there is a silver lining for those of us on the cutting edge of marketing 
Scott Mallinson 1338 days ago
http://www.scottmallinson.comI never really understood the ban on product placement in TV programmes. It has been permitted in films for many years, think James Bond and Aston Martin or more obviously Wayne’s World.
The only issue I can see with permitting product placement is that brands could lead/determine the content of TV programmes through stumping up huge amounts of cash, though I expect this will be regulated by Ofcom.
It still needs to stand for the BBC however due to the unique way they are funded and their stance on impartiality. Depending upon the success of product placement in TV programmes, could it lead to the abolition of the TV licence?
nick 1337 days ago
I think its a bit unfair to say Aston Martin was product placed in the Bond films. Bond had to drive someone’s make of car after all, and the Bentley was anachronistic in the 60s. He couldn’t really drive a German car at that time and American cars were too crass. Maybe something Italian? Not really. So I imagine it was a toss up between a Jaguar and Aston Martin, Jaguar not being the right tone, the saloons a bit spivvy, the E type too poptastic, the Aston was used.
Far worse was the endless shots of Sony products in the most recent Bond, which was tiresome and heavy handed.
I am not sure we will all abandon TV and newspapers for social media, well we might if we all remain teenagers, but we don’t all want to chatter all day long some of us want to watch a good show. At least I do.
Newspaper ad revenue is down because advertisers have fallen for the hype of online advertising (when was the last time you actually clicked on an online ad or weren’t simply annoyed by a pop up? ) and the hype that tells them that social media is the silver bullet to consumers hearts. This latter idea flogged to them by people after their money.
Ben 1337 days ago
http://bluecorona.wordpress.comIs product placement on TV banned in the US? I had always assumed that nothing on TV and in movies was ever “by accident”. That Klein Bicycle that hung in the background in Jerry Seinfeld’s apartment was every bit as planned as the Cannondale that replaced it for a season or two.
I completely agree that interruption advertising and marketing is dead – hardly ever effective. I’m reminded of it daily when I listen to The Long Tail on my drive to the office. Makes me wonder why (more) top brands haven’t retained gaming companies to create experience based marketing campaigns that users actually seek out, enjoy and then share.
I guess that’s “what’s next” in terms of being mass adopted.
Love the blog.
Ben
Moonwink 1336 days ago
http://moonwink.wordpress.com/No question but that broadcast TV profits are down. But this is due primarily to (a) recession) and (b) misperception among agencies and marketers that web/social media have the same level of consumer engagement as TV.
They don’t – not the ilk of Twitter and Facebook anyway – both of which have the fascination and engagement level of ant-hill watching. In other words: you may be fascinated by the goings-on but you don’t feel part of them!
TV works – or fails to work – according to the level of viewers’ emotional empathy with the brand. Successful use of the medium integrates the viewer into the action; social media leaves the viewer on the outside looking in.
Trouble is, though, that online media will continue to snatch share from traditional media as agencies will continue – as they have for decades – with their Pavlovian obsession with the flavour of the month.
Amelia Vargo 1335 days ago
I heard an interesting thing on the radio when driving home one evening last week (I think it may have been Friday but to be honest my commute is the same every day…)Anyway, it was about magazine advertisements where they will be using video, embedded in a magazine page (the page has to be thicker than ordinary magazine paper). It kinda got me thinking about the way advertisement is changing so rapidly these days.
Product placement on TV… Well it wouldn’t bother me, indeed it will make a lot of TV dramas etc more believable. It’s been going on in films for years so I don’t have a problem with it at all. I guess it will bring much needed revenue to the companies so that they can start to make some decent shows (I mean lets face it with a recession on less people can afford to go out so more will be watching TV). So they need to drastically improve the shows they put on.
As for Social Media taking over from TV ads… Well, I don’t think it’s going to be as simple as a straight swap. I think the medium needs to mature, and we need to be a lot smarter about using it.
ady berry 1335 days ago
Dave does this mean no more Newton & Ridley and “stallion” lager in Corrie? Shame… end of an era
Richard Teahon 1333 days ago
http://www.link-optimise.comIt was inevitable that Internet marketing would become the most successful form of marketing, as so many goods and services have moved to the net.
As for product placement, I feel it does have advantages to interruption advertising, as the flow of a drama in theory will be less broken. Sadly, interruption advertisng still features, but it is interesting how the TV companies are fighting back.
Time will tell how successful this wil be.
Dynasty Web 1328 days ago
http://dynastywebmarketing.comDid you know that more people watch YouTube daily than the local channels on TV? Many people now including myself watch TV programs online. For the simple fact tat I can watch the show anytime I want to versus the schedule time TV will show it.
This is the time to advertise your business online rather than TV because most people are online anyway. Facebook, Diggs, and many other social media outlets may be the most effective way to advertise now.
Does anyone knows any other great social media outlets that are great for advertising your business?
Alchemist 1158 days ago
http://www.narrowcastdigital.comI would much rather have product placement for companies like Coke or whatever and not have my show interrupted, then have zero product placement but three interruptions per show that show me advertisements that I’m not a target of anyway, like SeaDent.
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