End of Printed Flyers: A Boon for Advertising Investments on TV?

13 november 2023

In an era marked by the decline of printed flyers and promotional, television may be on the brink of a significant opportunity in the advertising industry.
A recent study conducted by the Boston Consulting Group, commissioned by the SNPTV (National Syndicate of Television Production, including for example TF1 Pub, France TV Publicité, beIN Régie, etc) in France, delves into the possibilities of opening up television advertising to retailers.

Regulation on TV ads for retailers

Retail sector has been banned from TV ads for many years in mainland France to protect the funding sources of print media, especially daily and regional newspapers that rely partly on ads for distribution (source: Cairn.info).

The CSA has repeatedly supported opening TV ads for this sector on local TVs. TV advertising for distribution has finally been allowed since January 1, 2004 on local channels, cable and satellite channels, and from January 1, 2007 on terrestrial channels. However, TV advertising for distribution will have to limit itself to an “institutional” discourse. Advertising for “commercial promotion operations” remains prohibited. (source: Senat.fr)

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New potential advertising revenue for television?

Les Echos revealed that the Boston Consulting Group study's, commissioned by SNPTV, sheds light on the potential for television to capture approximately €150 million in advertising investments from retailers.

This opportunity arises as the end of advertising leaflets is just around the corner. On 12 December 2022, Michel-Edouard Leclerc announced that the distribution of advertising leaflets would cease throughout France from September 2023. The Casino group no longer distribute leaflets from 2019. Cora supermarkets stopped doing so on 10 January 2019 . And Carrefour plans to go digital from 2024.

The budget previously allocated to such promotional materials could be redirected to various media channels. At E. Leclerc for example, most communication will now take place on the internet.

For the television industry, this could signify a substantial boost in revenue, which has seen a 7.7% decrease in advertising income during the first half of 2023, as reported by Bump, an advertising analytics firm.

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The Digital: Winner of this New Game

According to the study's insights, if the existing rules remain unchanged, digital platforms could benefit the most from the reallocation of advertising investments . The radio sector might face challenges in accommodating the additional ad spend, potentially leading to market saturation. Additionally, print media may not possess the required audience reach to replace the traditional printed flyers, as indicated by the Boston Consulting Group.

The study's analysts believe that if advertising regulations were revised, television could capture its "fair share" of sector growth, without detriment to radio or print media. These other mediums are also expected to grow in the coming years, with projections extending to 2027.

However, it's important to note that the potential reconsideration of advertising restrictions has already met with opposition from players in the print media and radio sectors. Despite this opposition, the findings of the study indicate a compelling opportunity for television to thrive in the advertising landscape, potentially rejuvenating the industry's revenue stream and making it an attractive option for brands seeking to advertise to a broader audience.

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Make the Most of Ads on TV: two Things to Bear in Mind

1. Get accurate audience measurement

In this evolving media landscape, accurate audience measurement will be crucial for brands and advertisers looking to capitalize on the television platform.

The ability to precisely gauge the viewership and engagement of their advertisements on each distribution channel will be paramount in making informed decisions about where to allocate their advertising budgets effectively.

Videomenthe can help agencies and brands, by providing an easy way to apply the Kantar Media watermarking and therefore get accurate audience measurement per content and per distribution channel (television, digital, radio or else).

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2. Promoting Accessibility of Advertising Spots for All

Another challenge will be the accessibility of TV spots.

While the majority of TV programmes are accessible via subtitles, and increasingly via audio description, accessible advertising spots are largely in the minority. In France in 2022, it is estimated that only 9% of advertising films were subtitled, according to data from Adstream and Peach (source: Strategies).

The AACC and the Union des marques are working on the accessibility of TV commercials with the support of the SNPTV, the ARPP and the Udecam. M6 Publicité recently announced an initiative to drive change by launching a subtitling service for commercials broadcast on linear TV (source: M6 Pub).

Videomenthe already works with broadcasters on subtitling projects, in order to comply with legal requirements in this area, but also to ensure that content is accessible to as many people as possible.

Eolementhe subtitling platform combined to experiences professional translators are a good opportunity to easily add SDH subtitling to ads. and reach the forgotten audience of death and hard of hearing people.

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Conclusion

In conclusion, as the traditional printed flyers phase out, television appears to be on the cusp of a golden opportunity to secure a significant share of advertising investments. This transformation in the advertising landscape, if embraced and supported by regulatory changes, could not only boost the television industry but also provide a new and effective avenue for brands to connect with their target audiences.

Nevertheless, the need for inclusive content ant accurate audience measurement remains essential to ensure brands get the most out of their advertising campaigns in this changing media landscape.

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