Television advertising is losing its clout in conversational pull

Luxury Daily

March 18 , 2019



While marketers are still devoting significant budgets to traditional television advertising, new research shows that the growth of cord cutting has drastically reduced the number of conversations surrounding brands.


Word of mouth is still a significant driver in marketing, with consumer conversations driving 19 percent of purchases, according to a new report from Engagement Labs. However, the number of these conversations is dropping at a speedy pace, from 115 per person a week to 95 in just five years.


“This study makes it very clear the relationship that has historically existed between paid marketing and consumer conversation is undergoing a profound change and marketers need to adapt quickly,” says Ed Keller, CEO of Engagement Labs.


“We know that conversations drive business performance," he said. "And an important way to get people talking has been via T V advertising, which not only reaches eyeballs but it also sparks conversation.


“Cord cutters who are mostly young people have significantly impacted paid-ad related conversations especially in the tech, telecom and auto industries. It is imperative for brand marketers and advertisers to find new ways to reach consumers and inspire brand engagement as cord cutting expands to older segments.”


Read the full Luxury Daily article, here.

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