Study: McKinsey sees black for TV advertising
By 2010, traditional television advertising will be only one-third as effective as it was in 1990. A study by the consulting firm McKinsey makes such startling claims.
In 2010, traditional television advertising will only be a third as effective as it was in 1990. A study by the consulting firm McKinsey shocks customers with statements like this, reports the American industry magazine Advertising Age. This study, which focuses on the development of media growth, predicts a 15 percent decrease in purchasing power with a constant increase in the price per thousand contacts, or the cost per customer contact.
According to the study, television advertising will be watched 23% less in 2010. Attention to TV advertising will fall by 9 percent as multitasking increases. The ability to absorb a message even falls by 37% due to massive oversaturation.
McKinsey assumes that consumer behavior has changed significantly and that advertising expenditure has developed in inverse proportion to this. Spending on advertising in prime time has risen by around 40 percent in the last ten years, although viewers ignore almost 50 percent of advertising. The trend of investing more and more in order to get in touch with customers and performing less and less well in the attention market is also continuing in radio and print.
Young people in particular have changed their media behavior considerably. Young people are said to spend less than half as much time watching TV as adults. In addition, young people between 18 and 26 spend more time on the Internet than in front of the television. The reason: they adopt new technologies much faster than all other generations. This age group would therefore be more receptive to advertising in blogs, podcasts and mobile advertising.
However, the McKinsey study also offers some consolation: As the supply of online advertising is still inadequate and the nature of the internet is generally fragmented, TV advertising will remain an effective form of advertising for the next few years.
