The confusion between effectiveness and efficiency in TV advertising is not just semantics; it impacts the clarity with which advertisers can strategize their media mixes today and tomorrow.
TV advertising's primary challenge is not how effectively it reaches audiences but rather how efficiently it uses resources, exemplified by high CPMs and the waste they create.
While many industry observers claim TV is either thriving or dying, the reality is that the truth lies somewhere in the complexities of its effectiveness and efficiency.
High CPMs often mask inefficiencies in TV advertising, as they gauge costs based merely on exposure rather than the targeting precision required to ensure that the right audiences see the ads.
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