Advertising companies invest millions of dollars in media advertising to outrank their competitors and influence consumers. Most of the studies conducted in different countries have shown that television has the greatest influence on audiences and is better at persuading the public to buy a particular product. For advertising, TV has several advantages, including access to a large audience at low cost, a high degree of attractiveness, and the ease of attracting attention. All this makes television an effective media platform for advertising.
In modern society, television plays an important role in advertising for various reasons. One of the chief contributors to the growth and popularity of TV advertising is the fact that TV advertising reaches a wide audience, enabling commercial advertisements to reach millions of consumers.
Another important success factor is the visual appeal of television advertising, which further enhances the effectiveness of the message – especially compared to print media and radio. Advertisers consciously use various tools to influence their potential customers, using video that not only promotes a particular product or service but is also interesting and enjoyable to watch. Customers remember what they see on TV and tend to buy the product they liked the advertisement for. This particular effect cannot be achieved using radio or newspaper advertisements.
The biggest role television plays in advertising today is that it offers an increasing number of branding opportunities for businesses and organizations of all sizes. The power of branding lies in the fact that the company creates a strong, distinct image for itself, and television advertising becomes a tool that greatly simplifies the process of creating a well-defined brand image.
Using television as an advertising tool has certain advantages. The first advantage is that companies have an opportunity to reach many potential customers at once. Given television’s popularity, it is not surprising that consumers visit stores or malls after viewing advertisements on TV. Compared to other media (e.g., social media and newspapers), television is much more effective in attracting consumers. Obviously, the quality and form of the particular advertisement affects the activity of consumers. For example, it is a well-known fact that during the annual broadcast of the Super Bowl (American football championship), the advertisements are often as highly anticipated by viewers as the game itself!
Using television as an advertising tool has another advantage: Today, television covers every layer of society. Therefore, companies have the opportunity to address any target group and audience. They can also choose a certain time for a specific product. For example, toy manufacturers prefer the first part of the day, and beer manufacturers try to match their advertising with sports events, etc. In addition, television is able to stimulate the unconscious impulses of the audience with audio-visual effects and make them want to purchase certain products. And although TV advertising is far more expensive than print media or radio advertising, the techniques devised to attract viewers are nowhere used as subtly as in television. The advertisements seen on TV allows the consumer to evaluate the pros and cons of the product without going to the mall or store. Consumers are able to make a preliminary decision about purchasing the product. An ad seen on TV may not immediately make a consumer want to buy a product, but after a few weeks, seeing a familiar product on the counter which is associated with the ad on TV for a split second, can lead us to buy it without thinking.
The first television commercial in the United States aired on July 1, 1941, on New York station WNBT, which still operates as Channel 4 (WNBC). It was a 10-second ad for the Bulova watch company that aired before a baseball game (Brooklyn Dodgers vs. Philadelphia Phillies). Bulova reportedly paid between $4 and $9 for the ad, and it was seen by about 4,000 people in New York. Today, advertising on national TV during peak viewing times, such as a sports match, costs several million dollars.
The first paid advertisement in Britain was broadcast in September 1955 on ITV, Britain’s first commercial channel. It was an ad for Gibbs SR toothpaste, now called Mentadent SR, owned by Unilever. The first television advertisement broadcast in Georgia was in the 1950s. It was an advertisement for Georgian jam, which was made by TV presenter Zhaneta Archvadze.
Advertising policy has changed over the years. In the 1960s, the power was in the hands of the advertisers because they paid for the ads during the show, meaning the business financed the show entirely and they had full creative control over the show’s content. Later, after the arrival of NBC’s CEO Sylvester “Pat” Weaver, this approach changed, and broadcasters could only buy certain blocks of time, but could not interfere with the content. The first color advertisement was released by RCA in 1965.
The sixties are known as the creative revolution. In those years, advertising shifted its focus to precise messages, emotional appeals, and sometimes human flaws. The use of computers allowed ad agencies to gather detailed information about consumers, make predictions and develop brand positioning based on consumer behavior and perception. The most offensive/unacceptable advertising practices during this period were subliminal messages: Some of the methods used by the advertising media can influence a person’s psyche to do things they would not do otherwise. For example, to buy a specific product. The idea is to influence the consumer’s mind by delivering the message that the advertiser wants you to do. The Federal Trade Commission banned this method in 1974, and it remains illegal to this day. The 1970s was an era of innovation and controversy for television advertising. The administration closely monitored television advertising, and in 1976, cigarette and smoking advertisements were banned on both television and radio.
By the 1980s, advertisers had the freedom to tell a story. At that time, commercials were created by famous directors. For example, Ridley Scott, who created one of the best Apple commercials of all time, “1984”. Advertising begins by attacking the stereotypes of society. A giant man on screen brainwashing the public, a woman swinging a hammer, smashing the screen to give the public an excuse to think differently. In the 1980s, there was “Solution Selling”, a technique that identified customer problems and then explained how a specific product could improve the situation.
In the 1990s, TV commercials featured famous athletes and actors, which attracted even more potential customers. At the end of the 20th century, TiVo, a television scheduling program that could be used to skip commercials, drew serious criticism from businesses. Also, in the last decade of the 20th century, cable television was introduced, which gave small companies the opportunity to sell their products on television as well. In 1996, the Seagram brand aired its first advertisement for an alcoholic drink (Crown Royal) on television, as it had previously been banned from both television and radio.
TV advertising revenue is increasing year by year. For example, according to a 2019-2020 study in the United States, television advertising revenue is projected to grow from $72.3 billion in 2021 to $81 billion by 2025. Global TV ad revenue is expected to grow from $151 billion to $162 billion between 2020 and 2024.
It is interesting to know which advertisers spend the most money in the world on advertising. According to 2019 data, Amazon, Procter & Gamble Co, L’Oréal and Samsung Electronics Co. are the largest advertiser in the world. Based on spending in 2020, Procter & Gamble won the title of the world’s largest advertiser and will continue to hold the top spot in 2021. In 2021, Amazon, Loréal and Samsung Electronics Co. remained in leading positions.
Unlike in the United States, television advertising revenue in Georgia is decreasing year by year. According to a report by the Communication Commission, the largest volume of television advertising was recorded in 2014.
In 2018, the largest distributor in Georgia was Coca-Cola Bottlers of Georgia, the second place was occupied by Proctor & Gamble, and the third place was occupied by Magticom. In 2019, Coca-Cola Bottlers of Georgia maintained its lead, with Silknet and Proctor & Gamble sharing second and third places. In 2020, Coca-Cola Bottlers Georgia lost its leading position falling to fourth place in terms of its placement of commercials, while Proctor & Gamble, which is still the leader, took first place. In 2021-2022, Coca-Cola Bottlers Georgia ranks third in terms of placement of commercials.
From 2018 to March 2022, gambling companies were always among the top ten advertisers. For example, in 2020, Adjarabet took second place in the number of ad placements, and in 2021, Crocobet was in second place. Crystalbet, Adjarabet and Betlive were among the top ten. In 2022, before the ban on gambling advertising, Crocobet was in second place and Crystalbet was in third place in terms of the number of advertisement placement.
In terms of ad placement, PROCTER & GAMBLE, L’OREAL and GLAXOSMITHKLINE led in the beauty and self-care category from 2018 to June 21, 2022.
COCA-COLA BOTTLERS GEORGIA takes the first place in the beverage category, and JACOBS DOUWE EGBERTS and IBERIA REFRESHMENT share the second and third places.
In the telecommunications category, SILKNET is the leader, MAGTICOM takes the second place, and BEELINE takes the third place.\