Capitalist Review

Financial Products Reviewed

Why Facebook is going old school with TV ads

September 28, 2015 by CapitalistReview Leave a Comment

This weekend, social media giant Facebook announced new advertising products. Noteworthy new in the lineup is TRP buying: a product which combines TV and Facebook advertising. The company is enlarging its partnership with information and measurement company Nielsen in order to offer advertisers to combine TV and online ads. Why is Facebook looking at old school tv advertising?

Ratings measurement

TRP stands for Total Rating Point and is used by Nielsen to measure the amount of viewers reached in a certain target group. When planning advertising campaigns, companies determine to how many consumers of a certain group, for instance millennials or seniors, they want to reach out for during the campaign. The Nielsen TRP measurement makes it possible for advertisers to plan their campaigns along a certain time of day or TV-programs. Facebook’s TRP buying seeks to combine the use of TV and online (video) advertising. For instance, if a certain target is met on TV, advertising in online video will take over. Facebooks goal is obvious: to take a major chunk of the advertising revenues pie which is currently going to TV advertising. We’re talking about big numbers. Consultancy Firm PWC estimates that TV advertising will reach USD 204.1 billion in 2019, due to an annual growth of 4.1%. The current numbers for internet advertising are also impressive. As at end of 2014 standing at USD 135.4 billion, Global internet advertising is expected to reach USD 239.9 billion in 2019. And Facebook wants a share of both slices of the pie.

Cross media consumer relationships

Currently Facebook is a pure online & mobile advertising play, but already has experience with video ads. The TRP-buying program would be an enhancement. According to research firm eMarketer, digital video advertising is expected to reach nearly USD 15 bn in 2019. This is very modest compared to the TV ad revenues. So from this perspective the new ad product is a logic step as well. Facebook says that in pilot campaigns, advertisers saw a 19% increase in targeted reach versus TV alone. The success rate is even +39% when targeted to Millennials. Remarkably, the company specifically targets Brand Awareness in its new campaigns. Facebook explains this by mentioning that the company offered fewer options in this category. This may be a good rationale, however sounds very traditional as this was the prime goal of old-fashioned TV campaigns. PWC projects that consumers, especially younger generations are seeing less and less difference in traditional and online media. However, advertising campaigns are still quite rigid focused on one particular medium. With boundaries fading, cross media advertising is the way to go.

Step to the future

Facebook’s new advertising product is the right way to go if cross channel advertising will take off even further. In Q2-2015, the company saw its advertising revenues increasing with 43% YoY. To maintain these high growth rates, it should tap more options in the advertising business. However, the question will be how traditional media will react to TRP-buying. TV-channels could lose significant amounts of money out of their already shrinking budgets if advertisers drastically move away from the traditional advertising programming. As a result, to match TRP-buying campaigns, price competition could increase. Will Facebook cooperate with TV-channels or is it aiming directly to marketers? Obviously Facebook is pointing out the positives, but will TRP-campaigns be successful across the board? Is it only interesting for big corporates? There are still some questions to be answered, but for now, the cross medial approach looks like a logic step into the future of advertising. The increase of Facebook’s product portfolio is positive for future earnings and therefore its shares.

Contents hide
1 Share this:
2 Related

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Related

Why America Opposing Human Rights Abuses by Beijing would Benefit China
Invasion of Guyana by Venezuela key to regime change?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

  • Jet Blue Mastercard Activate and Review (Barclaycardus Activate Online)
    Jet Blue Mastercard Activate and Review (Barclaycardus Activate Online)
  • Best Buy Account Credit Card Login, Activation, & Review
    Best Buy Account Credit Card Login, Activation, & Review
  • GetMyOffer.CapitalOne.com - Card Application for 2022
    GetMyOffer.CapitalOne.com - Card Application for 2022
  • www.mercurycards.com/activate - Login to Activate Your Mercury Mastercard
    www.mercurycards.com/activate - Login to Activate Your Mercury Mastercard
  • AmericanExpress.com Confirm Card (2022 AMEX Card Review)
    AmericanExpress.com Confirm Card (2022 AMEX Card Review)
  • www.AspireCreditCard.com Pre-Approved/Acceptance Code (2022)
    www.AspireCreditCard.com Pre-Approved/Acceptance Code (2022)
  • Upstart.com My Offer Code, Refinance, & Reviews
    Upstart.com My Offer Code, Refinance, & Reviews
  • FirstNationalCC Apply (Card Review & App - Updated 2022)
    FirstNationalCC Apply (Card Review & App - Updated 2022)
  • www.wellsfargo.com/myoffer reservation number - Respond to Mail Offer
    www.wellsfargo.com/myoffer reservation number - Respond to Mail Offer
  • Valero.com/creditcard payment - Valero Fleet Login/Review
    Valero.com/creditcard payment - Valero Fleet Login/Review




Pages

  • About Capitalist Review
  • Affiliate Policy
  • Capitalist Review
  • CapitalistReview Merch
  • CapitalistReview Privacy Policy
  • CapitalistReview Terms of Use
  • CapitalistReview.com
  • Contact
  • Sponsored, Guest Post, and Advertising

Categories

  • Credit Cards
  • Investing
  • Banking
  • Loans
  • Mortgage
  • Capital One Credit Card
  • SoFi Student Loans

Recent Posts

  • JJillCard.com: Make a Payment & Update Account
  • GetMyOffer.CapitalOne.com – Card Application for 2022
  • OpenSkyCC.com/Activate: MyAccount Online Account Activation
  • Exxon Mobil Credit Card Login, Application, & Review
  • Can You Use a Walmart Credit Card at Sam’s Club? (FAQ)

Navigation

Capitalist Review Sitemap

Contact Us

Popular

Jetbluemastercard.com/Activate

mercurycards.com/activate

www.barclaysus.com/activate

Recent Posts

  • JJillCard.com: Make a Payment & Update Account
  • GetMyOffer.CapitalOne.com – Card Application for 2022
  • OpenSkyCC.com/Activate: MyAccount Online Account Activation
  • Exxon Mobil Credit Card Login, Application, & Review
  • Can You Use a Walmart Credit Card at Sam’s Club? (FAQ)

RSS Capitalist Review

  • JJillCard.com: Make a Payment & Update Account May 25, 2022
    JJill Card Payment You can pay your J. Jill credit card in a variety of different forms, the easiest being online. In order to pay your bill online please visit https://d.comenity.net/ac/jjill/public/home and click on the “sign-in” tab. This will allow you to access your account homepage. Please note those who are new to the card […]
    CapitalistReview
  • GetMyOffer.CapitalOne.com – Card Application for 2022 May 24, 2022
    Get My Offer From Capital One (Quick Summary) A credit card offer from Capital One Almost always arrives by US Mail in the form of a promotional application Intended for consumers with a good to great credit score If you receive this offer you should be happy as you have a great credit score The […]
    CapitalistReview
  • OpenSkyCC.com/Activate: MyAccount Online Account Activation May 22, 2022
    Activate an OpenSky credit card online Simply rev up the old PC and head on over to www.openskycc.com/activate and follow the on-screen instructions. Activation will take about 5 minutes to complete. Please note in order to obtain the OpenSky credit card you must be 18 years of age or older and a legal resident of […]
    CapitalistReview
  • Exxon Mobil Credit Card Login, Application, & Review May 22, 2022
    Exxon Mobil Credit Card Login If you are an Exxon Mobil credit card customer and are looking to take your credit card online please visit citiretailservices.citibankonline.com and follow the on-screen prompts. You must provide an email address, Alternative site logins include exxonmobilcard.com login and https://citiretailservices.citibankonline.com. Please note you must be 18 years of age or […]
    CapitalistReview
  • Can You Use a Walmart Credit Card at Sam’s Club? (FAQ) May 22, 2022
    Can you use a Walmart credit card at Sam’s club? Walmart issues two credit cards: Walmart MasterCard and the Walmart Rewards Card. You must be 18 years of age or older and a legal resident of the United States. Both Walmart credit cards can be used at Sam’s Club. Visit walmart.capitalone.com to learn more about […]
    CapitalistReview

You can trust the integrity of our balanced, independent financial advice provided by Capitaliat Review. CR may, however, receive compensation from the issuers of some products mentioned in these articles. Opinions, reviews, analysis, advice, and thoughts are the author’s alone and his/her alone only. This content has not been provided by, reviewed, approved or endorsed by any advertiser, unless otherwise noted.

pages

  • About Capitalist Review
  • Affiliate Policy
  • Best Credit Cards of 2016
  • Capitalist Review
  • CapitalistReview Merch
  • CapitalistReview Privacy Policy
  • CapitalistReview Terms of Use
  • CapitalistReview.com
  • Contact
  • IndigoCard.com Apply – Indigo Platinum MasterCard Review
  • Sofi.com/Refinance1: Pre-Selected Refinance Promotional Offer Worth It?
  • Sponsored, Guest Post, and Advertising
  • Student.DRBank.com/BigSavings – Refinance Student Loan with DRB?
  • www.Betterment.com/Start – 5 Reasons to Invest with Betterment
  • www.cashnetusa.com/approved – Prequalified Loan Offer
  • www.SaveWithProsper.com – Prosper Loan Review for Borrowers
  • www.sofi.com reviews – SoFi Review and Sign Up Bonus
  • www.trysofi.com – Student Loan Refinancing From SoFi Worth It?
  • www.upstart.com/myoffer – Upstart Loan Application
  • Best Credit Cards
  • Best Credit Cards For Foodies
  • Coronavirus Home Refi?

© 2016–2022 Capitalist Review