The End of TV Advertising

When was the first time you ate an Oreo cookie?

I remember watching “The Parent Trap” (recall a normal Lindsay Lohan?) when I was about eight years old. In one scene, Hallie turns to her twin, Annie, and asks if she wants an Oreo. They discover that they both enjoy eating Oreos with peanut butter. From that point on, I always associated Oreos with the innocence and coolness of that movie. Even at eight years old, I was a target of product placement and subconsciously became a lifelong customer to Oreos (until I realized the amount of chemicals and preservatives injected in them).

Every time I went to a youth group event in junior high and high school, I would snatch an Oreo  and would do what the actors did in the commercial: twist both cookies apart in order to see if the cream would end up on one side or the other! Oreo makes many sentimental commercials portraying parents or grandparents sharing a tender moment with their child/grandchild over a glass of milk with Oreos.

A week ago, Mondelez International (formerly known as Kraft who owns Oreo’s) signed a global advertising deal with Google that will be spending millions of dollars consecutively on online video. It was reportedly  Mondelez International’s biggest digital media deal ever. Mondelez’s strategy this year is to commit ten percent of their advertising budget towards online video. In the past, Mondelez spent most of their budget on TV but now they are focusing on the emerging advertising medium of online video.

Mondelez plans to aim half of their media budget into digital advertising by 2016 because they “drive ‘twice’ the return of traditional TV advertising” (1). This is bad news for broadcasters which have been hurting due to other huge brands following the lead of Mondelez by moving their advertising budget online.

In addition to the advertising deal with Google, Mondelez is now joining YouTube to create a low-cost but high quality video content. The videos are planning to feature digital starts in order to create highly engaged audience to build an affinity with the brand.

Surprisingly, eMarketer researchers have recently forecasted that “online video ad spending would overtake the amount spent on TV advertising by 2018” (1).

Mondelez chose to switch from traditional media to digital in order to increase and improve media efficiency. What do YOU think about the switch from TV to digital media mediums?

Citation: O’Reilly, L. (2014, October 1). The Owner Of Oreos Just Signed A Huge Deal With Google That Will Terrify TV Broadcasters. Retrieved October 16, 2014.

Image from: http://jacquelinel9.files.wordpress.com/2013/04/the-parent-trap-still-010.jpg

Youtube video link:  http://www.youtube.com/watch?v=Yl95nIN3Jx8

Advertisements

3 thoughts on “The End of TV Advertising

  1. I think this is a really smart move for the company because I am online upwards of 4 hours a day where I don’t even watch any network tv so it would be much more effective advertising to reach me online and others like me rather than through traditional tv commerials which I don’t see because I watch all my tv online.

    Like

  2. While “television” advertising will never quite go away, I think that the days of formal TV are just about over. Making everything digital is easier, and frankly more sensible.

    Like

  3. I think television advertisements, at least in this era of technology, are simply too long. With new services like Netflix and Hulu, less people are willing to watch traditional television programming because of the advertisements. Albeit, Hulu does utilize some form of advertisements, but they are definitely shorter and less frequent than the ones on television. Youtube advertisements typically have the ability to be skipped, which adds to the attraction of the service. One advantage of traditional television services is that they offer up the latest programming which digital platforms on line have yet to catch up to. You can watch the first few seasons of the Walking Dead of Netflix, but you’ll still tune in to AMC on Sunday to see the latest episode.

    Like

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s