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Local TV Advertising Benefits From Supply and Demand

March 12th, 2019   ||    by Callie Wheeler   ||    No Comments

Initially considered a drawback, the limited inventory for local cable TV advertising may actually be a strength. Digital has long heralded its seemingly endless inventory as an advantage, but television’s limited supply has its own benefits, making a strong argument for traditional supply and demand.

TV’s Finite Supply Creates Demand

Do you know what the number one program under syndicated TV was the week of January 14, according to Nielsen? If you guessed Judge Judy, you are correct! Bailiff, get this reader a prize! For the more than 10 million viewers watching this daytime program each week, there are a finite number of ad slots. This limited supply nearly guarantees demand—brands want to be in front of these viewers.

Other shows, like Wheel of Fortune, Jeopardy, or The Big Bang Theory, provide brands an avenue to reach unique audiences of viewers within a secure and trusted environment. We know television is still the preferred medium for brand building and awareness, creating emotional connections and instilling a sense of trust with viewers. Brands are confident that their advertisements will be seen in a credible context.

Given the opportunity to choose local markets, dayparts, and more, brands can achieve a balance of control and credibility only local cable TV advertising can provide.

Digital’s Infinite Possibilities Are Good and Bad

Digital, on the other hand, has nearly infinite ad inventory. Audiences can be targeted by search history, website visits, and more. From retargeting to SEM (search engine marketing) to digital display ads, brands may see their advertisements cropping up in a variety of locations.

Take Google Ads as an example. Marketers can create traditional SEM ads, retargeting banners, and Gmail ads in the platform. Customers could see an ad in all three places, as well as via other vendor partnerships and campaigns, like native advertising, display ads on partner sites, and more.

This ubiquity is a double-edged sword. Brands can saturate the internet with their presence, but one, they don’t always have control over where ads show up, and two, this tactic may jeopardize their audience. The reality that ads can show up in the wrong places, potentially harming brand reputation, is common knowledge. For example, a report on Marketing Dive showed 45 percent of advertisers are concerned about brand safety on social media sites.

Additionally, brands are finding these ever-present digital ads may harm their relationships with consumers unintentionally. PRNews detailed the challenge ubiquitous targeted ads can create when a consumer’s situation changes, sometimes due to tragic circumstances.

Seeing the Benefit of Local TV Advertising

Ultimately, a strategic balance of marketing channels is what brands are after, and part of that strategy is understanding where strengths lie. Television’s limited ad inventory is one of those strengths, as many brands have already discovered.

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