Davos: The future of TV commercials

Television has long been at the top of the advertising food chain. But is it in danger of losing its market dominance? Maurice Lévy, Publicis Groupe’s chief executive, says dramatic change for the format is coming, but slowly.

“[The TV commercials format] is not a dinosaur,” he told Tom Keene and Francine Lacqua during an interview on Bloomberg Surveillance at the World Economic Forum. “There will be a transition because there are still a lot of people who are watching TV the old way. It will move slowly to the new.”

With fewer people paying for TV – even live sports – and preferring to watch video on-demand, how did this increasing shift toward cord-cutting affect advertising in 2015?

  • 38 percent of global ad spending went to TV in 2015
  • 32 percent of global ad spending went to digital in 2015
  • Spending in the TV ad market declined by 0.1%, while spending in the digital ad market increased 17.2%

(Source: Magna Global via Bloomberg Intelligence)

But don’t call time out for TV bundles or ad spends just yet.

“The way people will watch TV is already changing and will change dramatically,” Lévy said. “We will have to adapt ourselves and the idea that we have the passive watching or viewing of TV shows, sitting down with a beer and popcorn has passed.”

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