I had an informative chat about the future of TV advertising with Greg Schwartz, the founder of Household.tv, an end-to-end boutique TV consultancy helping consumer brands scale through the power of TV advertising.
Greg highlights the importance of testing TV’s effectiveness, especially for larger brands, noting that traditional TV advertising can be cost-effective for direct-to-consumer brands. He emphasizes the need for patience and proper budget allocation, suggesting a balance between creative investment and media spend. Greg also stresses the importance of authenticity in TV commercials and the potential benefits of using influencers or celebrities as spokespersons.
We both reflect on the historical context of TV advertising and the shift from broad targeting to narrow digital targeting, underscoring the need for a strategic approach to TV advertising.
Discussion points include:
- The importance of testing TV advertising before committing significant budgets, especially for larger brands.
- The challenges of trying to buy TV like digital advertising, given the fragmented nature of TV data and the lack of a central hub of data.
- The various levels of TV advertising buying, from network to individual TV stations, and the fragmentation of cable advertising.
- The economics of TV advertising, where upfront buying offers economies of scale but requires a premium.
- The natural fit of traditional TV advertising for direct-to-consumer brands, which have not traditionally advertised on TV.
- The “gate-kept” nature of the TV advertising industry and the educational conversations needed to understand the complexities.
- The differences in media buying strategies between traditional TV and programmatic advertising, where more inventory often costs more.
