TV advertising is evolving rapidly, shaped by shifting viewer habits, the rise of on-demand content, and new opportunities for advertisers. In this blog, we recap insights from Zoe Harkness, Head of Partnerships at Thinkbox, who spoke at Bonded’s latest Future Trends Festival in London, offering a data-driven look at where the industry is headed.
The world of TV advertising is undergoing a transformation, driven by evolving consumer habits, the growing dominance of on-demand content, and shifts in how brands engage with audiences. At our most recent Future Trends Festival in London, Zoe Harkness, Head of Partnerships at Thinkbox, shared key insights into how TV advertising is changing and what it means for advertisers.
Zoe Harkness is an experienced media professional with a background in TV, having worked at ITV, Channel 4, and Sky. Now at Thinkbox, she specialises in showcasing the effectiveness of TV advertising.
Over the past decade, viewing habits have changed dramatically. Traditional linear TV viewing, where people tune in at scheduled times, is gradually giving way to on-demand viewing. This shift has been particularly prominent in the last few years, with the rise of services offering streaming and broadcast video on demand (VOD).
Interestingly, 2020 saw a surge in video consumption, driven by the COVID-19 pandemic, as people turned to TV for entertainment and information during lockdowns. However, since then, the viewing environment has stabilised, with commercial viewing holding steady. The growth of broadcast VOD has been one of the most noticeable trends, experiencing a 23% increase this year1. According to Zoe, Thinkbox predicts this trend will continue to grow in the coming years, reflecting the increasing appetite for on-demand content.
With the shift towards on-demand viewing, the types of content viewers consume have also evolved. Some genres are more popular in on-demand formats, while others are still more suited to live TV. Drama and film, for instance, are the dominant genres in the on-demand space, with 40% of viewing in these genres happening on-demand. In contrast, genres like news, sports, and current affairs see much less on-demand consumption, as these tend to be time-sensitive and benefit from the immediacy of live broadcasting.
For advertisers, this distinction is crucial. Understanding which genres work best in on-demand versus live TV can help inform ad placements. Brands looking to engage viewers through storytelling may find BVOD an effective space, whereas real-time advertising opportunities remain strongest in live programming.
Streaming services like Netflix, Amazon Prime, and Disney+ have been growing steadily since their inception. However, in 2023, they saw a slight dip in subscriptions, possibly due to the cost-of-living crisis and increasing scrutiny on password sharing.
Another emerging trend is ‘subscription cycling’, where viewers sign up for a service, binge-watch their favourite shows, and then cancel their subscription until the next season or content release. This trend poses a challenge for streaming platforms, as they need to find ways to retain subscribers beyond the binge-watching phase.
Despite these challenges, Zoe claims that TV remains the primary destination for high-quality content. The TV set continues to be where viewers spend most of their time watching content, with the average person watching about three hours of TV per day. Interestingly, 80% of this viewing is still on traditional broadcaster TV, with 71% of it being linear and 9% via broadcast VOD. Streaming platforms account for just 15% of total viewing time, with Netflix leading the charge at 8%, followed by Amazon Prime at 3% and Disney+ at 3%.
When it comes to advertising, the landscape has also stabilised. In 2023, viewers watched 17 minutes of video ads every day, the same amount as in 2022. However, the rise of streaming platforms offering ad-supported models—such as Amazon and Netflix—has opened up new avenues for advertisers. This means that TV advertising now extends beyond traditional broadcasters, with more opportunities to reach audiences through high-quality content across multiple platforms.
However, while TV advertising is stable, the way people consume ads is changing. Research from Thinkbox highlights 87 different factors that affect ad effectiveness, with six key factors driving 80% of the total impact. These factors include:
Find out more about these insights in Thinkbox’s Context Effects research here.
One of the most interesting findings from Thinkbox’s research is the importance of the TV set itself in ad recall. The larger, higher-quality TV sets available today are ideal for delivering impactful ad experiences.
Additionally, high-quality audio plays a significant role in enhancing ad effectiveness. Audio senses are powerful, and when viewers hear ads with excellent sound quality, they are more likely to remember them
The living room, as the central hub of home entertainment, is the most effective space for advertising. It is where people spend the most time watching professional content on a TV set.
The shared nature of the living room environment—where family members or friends gather—makes ads more likely to stick in collective memories, particularly when viewers are satisfied with their overall viewing experience.
If advertisers get the combination of factors right, they can significantly boost ad recall. Thinkbox’s research suggests that by optimising the device, content type, emotional context, and location of viewing, ad recall can be improved by as much as 6.8 times.
With the increasing complexity of the advertising landscape, advertisers must consider these factors to maximise the impact of their campaigns and ensure their messages resonate with viewers.
Practical strategies to optimise your TV ad performance:
As the world of TV advertising continues to evolve, there are both challenges and opportunities. The shift towards on-demand viewing, the steady growth of streaming platforms, and the stabilising impact of video advertising present a dynamic and sometimes complex landscape.
However, with these trends come new opportunities for advertisers to engage with audiences in more meaningful and effective ways.
TV should remain at the heart of any video advertising strategy. By understanding viewing behaviours, the power of different devices, the mood of the audience, and the location of the ad, advertisers can create more engaging and memorable ad experiences.
Looking to integrate TV advertising into your marketing strategy? Get in touch with our media team at Bonded to explore the best approach for your brand.
Or, for more insights from leading industry experts, register for our 2025 Future Trends Festival in Newcastle on March 27th. Apply for your ticket by emailing connect@wordpress-744164-5635304.cloudwaysapps.com with the words ‘BONDEDADFEST’.
