As a new entrepreneur in the private broadcasting industry, David Kezerashvili was immediately confronted with the same challenges that every private television station faces: advertising revenue. Private TV stations are constantly looking for new and innovative ways to sell their ads.
“I remember when I was first approached about investing in a new Georgian TV station. It was early of 2019 and I was trying to convince the board of directors that even with my investments, the channel would still needed this ad-ver-tis-ing stuff,” he says as he gestures with his hands as if holding an invisible box with those words printed on it. “I swear, it’s been a real uphill battle to get those investors.”
“As a new TV station, we’re not as established as the other stations. Being a private network it’s important not to get financial support from the state. We want to maintain journalistic freedom and to do so we are dependent on private investors,” he said as he sat in his chair at his home office answering questions about the launch of Formula TV.
David Kezerashvili has a lot to say and is happy to talk about his new role as investor. Entrepreneurial success is a function of several factors; one being the production of quality goods or services to meet customer needs and another being a comprehensive Marketing strategy. Every business is at the mercy of customers, hence business owners must reach out to prospective buyers. One of the cogent parts of the marketing strategy is how the establishment wishes to portray the value they seek to offer potential customers through advertisement. Advertisement sustains the capacity to significantly influence the buyer’s purchasing decision and the major platforms through which business advertorials can be placed includes social media platforms and other platforms such as television, newspapers, radio, outdoor billboards, or even door to door outreach.
TV adverts are one of the most effective channels of marketing products or services to prospective clients. Its effectiveness draws from the fact that most middle to high-income households which also potentially forms the buying population tends to possess a television set and watch TV from time to time. However, in this social media age where Twitter and Facebook ramp up significant daily user engagements as well as millions of unique visitors thronging the platform almost daily.
The question then suffices, is television advertising still worth it? To answer this question, there is a need to consider the pros and cons of TV advertising.
The 3 Main Advantages Of TV Advertising
1. Large Audience
The major attraction of TV ads is the opportunity to reach a large audience. Moreover, the ability of TV ads to combine audio and visual qualities makes them more impressive than newspaper or billboard ads. Television is one of the most popular electronic gadgets to have in a home, hence TV programs especially those centered on news or entertainment programs are likely to generate huge followership.
2. Target Audience
Television stations tend to run special TV programs that can attract a specific demographic; hence this presents an opportunity for business owners to place adverts that will target the demographics that pertain to the product or service they sell. New TV stations like Formular TV tend to run a range of captivating and incisive news programs and entertainment programs which can draw lots of regular viewers.
3. Boost sales conversion
When adverts are broadcasted consistently on TV, it can predispose the viewer to make a purchasing decision based on the advert placed.
3 Disadvantages To Consider
TV ads tend to be very costly and may be unaffordable for small scale businesses. Also, consider the possibility of other businesses running similar adverts, the patronage that could arise from such advert may be limited.
TV channels are profit-oriented and will potentially accept as many advert placement opportunities from business owners as possible. This can create unhealthy competition among the businesses.
TV adverts may become irritating such that viewers tune away when the advert is on or may see ad breaks as a form of time off for them to do other things and return when the advert is over.
Why Television Advert is good for businesses
Despite the demerits that accrue to TV adverts, the fact remains that they are an effective channel of reaching out to customers and ensuring customer loyalty. According to research on consumer behavior, there is a 60% likelihood of customers buying a product when influenced by TV ads, compared to a 40% chance of making the same purchase when faced with online and social media advertising. Television programs tend to elicit the viewer’s attention and loyalty and this can increase their interest in trying out the product advertised on their favorite shows. While the cost may be much, the returns may be even more both in the short and long term. In business, it takes money to find the money. Nowadays, there appears to be a synergy between TV stations and social media, hence, social media users may be able to access the TV stations from their social media handles. This can give dual leverage for businesses to reach out to viewers through the TV channel and also through social media.
Although TV in the 21st century is fast becoming an old technology especially with the introduction of streaming networks like Netflix, Amazon Prime, and Hulu. Search engine and online media companies have largely become the juggernaut of advertisement. However, television remains a worthwhile medium for reaching out to prospective clients. The final verdict after the merits and demerits of TV adverts is that TV adverts are good for medium to large scale businesses as they can offer a high return on investment (ROI). However, small scale businesses may be better off with social and digital media adverts.