As a hectic and unpredictable 2023 winds to a close, TV advertisers are turning their focus to 2024 planning with cautious optimism. Despite headwinds, there’s plenty of reason for confidence among advertisers going into the new year, with most Americans expecting the economy to trend upward over the next 12 months.
With technology as an ever-present catalyst, the coming year promises a continued evolution within the TV advertising space, with trends tested and considered in 2023 accelerating to full steam in 2024. Much of this acceleration will be driven by an ever-more-discerning advertiser who is looking to maximize ROI and incremental reach with their most coveted audiences.
From conversations with advertisers and agency partners, below are some of my predictions for trends that will fuel TV advertising growth and enhanced value in the coming year.
Streaming Transparency and Incremental Reach
As advertisers continue to increase share of budgets into streaming channels, the vendors that deliver heightened transparency are going to be the ones that take a leadership role in the industry and set the bar for others.
Vendors proving incremental reach for advertisers allocating budgets across linear and streaming will lead the pack, as well as those who invest in ad tech via dashboards to show delivery across all campaign components in a timely cadence and tie in reach and frequency.
At the same time, advertisers should expect to see more-granular options when it comes to advertising alongside fixed streaming content like sports and news—including the ability to advertise alongside specific games and other event-driven content within streaming channels.
The Layering Effect in a Fragmented Ecosystem
Advertisers have more options, and viewership is more spread across channels than ever. The vendors that have the most precise audience data and sales executives knowledgeable on data usage will be leaned on increasingly in 2024.
Audience-based buying across linear and streaming, combined with a fixed media schedule across sports and entertainment and inclusive of a hyper-targeted addressable campaign, is a very effective strategy in a fragmented ecosystem.
Sales teams that can offer this type of multi-screen, multi-platform one-stop approach to advertisers will succeed in an ever fragmented and data-focused ecosystem.
The Value of the A50+ Audience
Beyond improvements in targeting and reporting, advertisers must also factor macro-level audience trends into their 2024 media plans. Within the TV realm in particular, perhaps no single audience will have quite as great an influence as Americans aged 50+.
This is a growing cohort that has incredible spending power, yet most advertiser demos are age 25-54, leaving out this powerful group with deep pockets and disposable income.
This consumer cohort has historically been overlooked by many brands, and yet they’re living longer, spending more, and increasingly tech savvy in their media consumption. The 50+ consumer set contributes more than $8 trillion to the U.S. economy each year, with a GDP that’s expected to triple by 2050.
Although 50+ consumers contribute more than half the consumer spending in the U.S., only 5-10 percent of marketing budgets is spent on winning them over. For advertisers that acknowledge and act on this discrepancy, there’s a huge opportunity to connect with these active consumers, many of whom are just as engaged across the spectrum of marketing channels as their younger counterparts and watch a lot of TV. Consider:
- ● Nielsen’s Scarborough data indicates that 93 percent of 50+ consumers are online.
- ● Three out of four 50+ consumers have bought something online in the past year.
- ● Two-thirds have a smart TV or an internet-connected TV.
- ● On average, A50+ watch 19.9 hours of live traditional TV in a typical week.
For these reasons, TV represents a uniquely powerful opportunity for reaching this highly desirable and increasingly valuable demographic.
Local Incrementality
Finally, let’s talk about the importance of regionality when it comes to TV advertisers’ growing desire for incrementality. In 2024, local advertising in the U.S. will grow 8.6 percent to $175.6 billion, with a large portion of that growth going to local TV—and not just in the form of political campaigns.
Regional and local advertisers make up the majority of spending in local markets, but there is also an enormous opportunity for national brands to use the power of local market activations to increase their share of voice in key markets across the country. Local programming, such as news and sports, represents an ideal way for advertisers to find true incrementality with their TV budgets.
The impact of such buys can be up-leveled even further via localized creative, specific messaging in those markets, and highly visible custom sponsorship packages. The unique packages enable brands to weave their messaging into local programming with highly loyal and coveted audiences with logo integrations and product placement opportunities.
Navigating the 2024 TV advertising landscape requires a strategic and nuanced approach that goes beyond traditional paradigms. In an era where data-driven insights, targeted audience engagement, and innovative storytelling reign supreme, the right partnerships are key to thoughtful, effective media planning. Those who embrace the evolving landscape will find themselves not just riding the wave of change but also helping to shape its trajectory.
