It's not that television advertising is dead. It's that advertisers no longer understand television.
It's become conventionally cool among some forward-thinking marketers to say that television is no longer as important as it used to be and that advertising on television has lost its punch. That just isn't true.
Our lives continue to revolve around television, and television advertising persists as arguably the most powerful way to build a brand. It just depends on what your definition of "television" is -- and your definition of "advertising," too...
..To DigitalView, a London-based company that also has offices in New York and California, "television" is a flat-panel screen that's small enough to fit right on the shelf at a supermarket, or consumer electronics store. Stuart Armstrong, the company's coo, says "advertising" on this medium is "decisionvision," because, he says, it influences shoppers at the moment their purchasing decisions are being made.
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Fast Company Magazine - Tripping the Tube Fantastic