If you have been watching the commercial networks lately it is interesting that Gerry Harvey from Harvey Norman has an advertising campaign for ThinkTV which is basically a voice for commercial and regional networks in Australia. Gerry tells us that TV is the best medium for advertising. One thing that interests me, is that I cannot remember a time where commercial TV networks have had to advertise their own products. Is it that they are struggling?
To my mind TV advertising in metropolitan Australia is now reserved for the big boys and no one else can play, that is unless you are advertising to lonely gullible teens late at night.
The only thing that can save TV long term is the ability to stream small local ads into local areas other than that long term they are finished as big money buckets alongside newspapers. Already you can download just about every decent TV show moments after they have aired without advertising. That is why they throw ads inside TV shows and across our screens.
Just another example of old models having to change, because the Internet gives consumers choices and most choose to not watch ads.
Gerry finishes off the ad by telling the screen that he would never tell TV execs that TV is the best medium for advertising. Maybe not even the TV execs watch commercial TV any more and they download their TV shows from torrent sites or maybe it was just a crummy one liner.
Maybe that Gerry got a bunch of free ads to appear in the commercials, we will never know, but I love seeing traditional players getting a little desperate.
It is also interesting to see that 82% of Media Buyers believe TV plays a vital role in their communications mix. Failed to note that is where they make the majority of their money also.
6 Comments
Nick Buick
Totally agree Peter. I went for a walk on dusk a couple of days ago (you know… to get out) I live in a suburb that is made up entirely of warehouse apartments and so the ground floor apartments open directly onto the street. Its hard to resist not sticky-beaking into people’s windows as you go past. I went past atleast 10 such apartments where I secumbed to the urge to gawk and I noticed something really interesting. It was right on Prime-Time, yet not ONE person was watching TV. Every person I saw was sitting at a PC. Admittedly the age-bracket would all be 20-30somethings – but it was a pretty interesting observation no one watches TV any more.
I thought it was just me who didn’t bother with TV anymore – but it seems I’m not alone.
I would have stuck around longer to see what people were actually doing on their PCs, but someone called the police so I had to move on ;).
Paul D
Why would you watch TV ? The programmes are mostly garbage anyway. There are occasional funny programmes (Mythbusters etc.) but mostly very ordinary low brow programmes that do not add anything to most peoples lives. I guess Channel 10 will have another “Big Brother” this year. I reckon if you watch big brother you need to take a serious look at your life.
Paul Krayven
I tend to agree with your article Peter, I do however believe television has a place for advertising. Maybe not the 5 minutes of crap they put on during the ad breaks but I think product placement techniques into the shows themselves can be quite powerful. Even our agency had an auction board in the background on the show ‘Thank God You Are Here’
There are definately better methods for advertising though and I think we’ll see less and less tv advertising and more creative advertising.
max
well here is a little theory for ya.
If my memory serves me correctly Gerry Harvey actually owns most of the Real Estate that Harvey Norman and their surrounding shops sit on. He has always been anti web because online shopping naturally drives down rents…..
For a massive retailer HN has a very ordinary website that doesn
Peter Ricci
That is true Max, even from the early days. But Gerry knows one thing and he is 100% right about it.
I call it the Coca Cola Store:
If all you are doing is selling something someone else has created and everyone can do the same then all you are going to get into is a price war and there is no money to be made in competitive environment.
Harvey Norman is by far the most expensive retailer in Australia, but it is the convenience that it brings to the consumer. Big fast moving ads, all the wows get people in and it is a very successful model.
Each store has a number of franchises in it and each sales person competes against other ones.
Nick Buick
Thats interesting peter. Incidentally, do you guys have SPACE down there? I got one around the corner from me – I believe its owned by Gerry also.
If you’re ever in brisbane check it out for a laugh. You think Harvy Normal is expensive – you should see the shite they’re hocking in SPACE. $5000 for a simple wall mirror, $15,000 for a lamp shade, etc.
No wonder Gerry’s a squillionair – he seems to have tapped in on an untapped market of consumers whose wealth is equalled only by their stupidity.