The Death of Television Advertising

In 2019, companies spent over $70 billion on television ads. This is all in direct contrast to the universal response everyone has when a commercial comes on; people instinctively either pull out their smartphone or change the channel. Their focus is far from the commercials that are supposed to entice us into buying new products and services.4

Technology has transformed consumer behavior. Just a short time ago, if you would have said that television ads would lack relevance, no one would have believed you. Yet due to the digital takeover, this is true. Television ads have never been less relevant than now.

Broad approaches toward attracting customers used to work, but this is no longer the case. The internet offers a dynamic alternative that is far more intriguing. Based on search history, algorithms, and the power of distinct habits, companies are able to target potential customers with amazing accuracy. This shift will continue over the next 10 years, with commercials continuing to become less relevant.

Taking Action

The Superbowl is the only television show in which people choose to watch commercials. During every other program, consumers are not paying attention. You need to eliminate the notion that TV commercials have relevance and begin pouring your money into internet and social media marketing.

  • • Over the past 5 years, what is the ROI in your television advertising? Internet and social media?
  • • What investments have you made in internet and social media marketing?
  • • What social media platforms can you use to reach your target audience?

The Gig Economy

Forget employees jumping from job to job, the trend that is growing the most is the Gig Economy. Rather than being tied down to a specific company or particular role, independent workers are contracting with organizations for short-term engagements. Popular sites like Fiverr, Upwork, and Freelancer are all sophisticated platforms that bring individuals looking for temporary work and companies that have a certain task to be completed together in a safe environment. Services on these sites range from website design and teaching a foreign language to janitorial services and providing tennis lessons.

The Gig Economy has many benefits. Workers are able to take on projects that are appealing to them and a good fit for their skillset, schedule, and budget. With many employees (especially employees new to the workplace) valuing their freedom over a steady paycheck, people who are not tied down to a specific job or schedule are able to have more control over their lives.

Similarly, companies are able to be more fiscally sound through the use of temporary workers. By avoiding big salaries and expensive benefits, companies can afford to bring on new talent for projects without making a big investment. Rather than having to worry about adding new employees that will inevitably weigh the company down, the use of temporary workers enables them to be nimble, while only investing in the talent they need at that time. This also broadens the talent pool, improving the value the organization can deliver to customers.

It is evident there are numerous dynamics that make the Gig Economy unattractive for some people and companies, but the use of this strategy will continue to grow due to the flexibility, cost structure, and changing needs people and businesses have.

Taking Action

With people becoming increasingly interested in having an opportunity to experience various roles and functions, and companies always looking for ways to cut costs and expand their talent pool, the Gig Economy is a perfect marriage for many people and businesses. Becoming more open to this concept and how you could potentially address certain projects could enable you to be more fluid with your hiring practices.

  • • Where can you cut costs by using short-term freelancers instead of permanent employees?
  • • What projects could you use temporary employees for?
  • • What skills are lacking in your organization that could be filled by freelance workers?
 
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