The University of Notre Dame found that traditional television ads are much less effective than advertisers believed. Advertisers still plan to spend $139 billion on linear TV ads this year, while they expect $33 billion for streaming and connected TV.
Researchers used viewing data from LG smart TVs and linked it to purchases on a food delivery app. They studied millions of people who opted in over four months and looked at broadcast networks such as NBC and ABC. The study found that older measurement methods give too high estimates of ad effects and that timing and buyer history help explain who responds to TV ads.
Difficult words
- advertiser — A company or person who pays for adsAdvertisers
- linear — A TV service with scheduled broadcast programs
- streaming — Watching video over the internet at any time
- measurement — A method to check and report results
- opt in — To agree to join or take partopted in
- broadcast — A TV or radio signal sent to many people
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- Do you watch more linear TV or streaming services? Why?
- Have you ever bought something after seeing a TV ad? What did you buy?
- Do you think companies should use smart TV data to study ads? Why or why not?
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