TV advertising has two main benefits. It increases brand awareness and responds to customers. It is possible to reach new customers as well as increase customer loyalty. It can also drive sales or response. It drives sales or responses. But, you could argue that advertising in TV has at least one core benefit.
What makes TV different? The power of the message is what I would say. It has been well established that video, with a combination sound and vision, produces the most effective advertising messages. Impact! In just 30 seconds, one TV advertisement can reach millions. I don’t think Google or Facebook could deliver 8,000,000 views in the UK within 30 seconds.
It may seem expensive, but it is worth it! But you would be wrong! While you can spend millions on TV ads, there are much smaller budgets.
What is TV Advertising’s biggest benefit?
I would say its greatest advantage is its low cost. The average cost per view for a TV commercial is less that half a penny (0.5p). This is why most digital video costs around 2p per viewer, and 4x the amount!
It’s more affordable than TV because it has such a large daily, weekly, and monthly audience. TV advertising costs depend on the supply of viewers and their demand.
Demand vs. Supply
For example, 600,000,000 viewers/30 million ad spending = PS10 CPT (cost per thousand viewers).
Supply vs. Demand = Cost
Advertisements are cheaper when there is more TV viewing. However, if viewers drop off the price will go up.
The cost of goods will rise if demand is high (e.g., in the run-up to Christmas). The price drops if the demand is lower, as with the summer months and due to external factors like COVID.
The Impact of COVID
COVID has helped to lower the cost of TVs. This means that you don’t have need for huge discounts in order to save money. Because there is less demand, the price has fallen up to 50% in certain months YOY.
Advertising more when it’s less expensive can give advertisers a huge advantage. You can get more for your money.
TV advertising offers a lot of options!
The choice is also a big advantage. There are many channels to choose from for advertising. SKY Media is a media company that represents more than 150 channels. ITV1 has many regional options and its own digital channels. Channel 4 offers a mix digital channels and macro targeting options.
Sky offers so many channels that it is possible to have a very small viewing audience. This means that adverts can cost as little as PS3 per 30-second advert. For thousands of pounds, you can also purchase a Coronation St advert on ITV that will reach 8 million viewers.
ITV1 offers geo-targeting options. You can advertise only in London, the northeast, or both.
TV advertising is trackable
Television responses can be tracked. It is probably the most effective offline medium for tracking response tracking. This is because of the impact of your ads and the size of your audience. If your advert is prominently displayed in peak hours, you will receive a response from your website or mobile number in just a few minutes. Knowing the cost of your advert and the number of responses received, it is easy to determine your cost per response.
TV Advertising Delivers Fame & Trust
We all know that when we see an advertisement on TV, it must be true. It is impossible to make claims that are false. When we see a discount or offer, we know that it’s real. Also, being seen on TV gives you the impression that your company is doing well. Advertisers will appreciate this, and should advertise even when the economy is struggling. This will increase the trust of viewers that your business is doing well, even when the economy is not.
What are the downsides to TV Advertising?
The main drawback of TV advertising is the slow production times. Most first-time advertisers will find the legal clearance process difficult, especially if you don’t have much experience clearing TV commercials.
It can be confusing. Advertisers may not know all the technical terms. TVR’s are television ratings. It is an industry standard. Although it is easy to understand, some may find it too complex.
Prices can quickly rise. Although ads can be purchased for as low a PS3 as you’d like, you can also spend up to 50k on one advert. How can you tell if you’re getting a great deal? Are you spending too or too little? This is a job of agencies.
The Reality Most TV Advertisers Do Not Know
The amount you spend does not always reflect the quality of what you get. The TV broadcasters do not know how many people will view your advert tonight, until after it goes out. So they make an estimate. This can lead to overestimating or underestimating your delivery.
The campaign will end and you won’t find out until then. You might get 22k value if you spend 20k on a TV commercial, but I might get only 18k if I spend 20k. Value isn’t gained or lost; it becomes a trade credit, or debt. I can request more value for a future campaign if it comes in under my expectations. I may have the campaign cancel if it’s too long.
Good Agency: What is the Job of a Good TV Advertising Agency?
The goal is to keep the value as even as possible. Some agencies deliberately over deliver in order to get audits against lower discounts than the ones they purchase. This can create a gray area. Are you getting the discount that you promised?
Are TV Adverts for Everyone?
It depends. You are ready to advertise on television? Do you have a website that converts well? Do you have a strong online presence and campaigns? Retargeting combined with TV or PPC campaigns can yield amazing results and often half the cost of PPC.
Are you focusing on B2B instead of B2C? You may not realize it, but TV options are available for B2B businesses. However, B2C will often benefit the most.
Do you think your brand needs a facelift? Perhaps this can be tied in to new TV creative and messages.
Although cost is an important consideration, I’ve already mentioned that TV advertising can be very affordable. But, if you need to advertise in multiple ITV1 regions to promote various retail locations, it can quickly escalate into six figures.
For us, it’s more a checklist. Are we in the right spot to watch TV and reap its benefits?
Why are some people unable to understand TV advertising?
TV advertising is often seen as too expensive and I hate this. It is something that most advertisers who talk about the affordability of TV advertising realize should be considered in their marketing plans.
What Returns or ROI can I expect from TV advertising?
This is the number one question most new advertisers want. Though there are many case studies available on the Thinkbox website, the main one is that TV advertising ranks as the best offline marketing channel with an ROI of about PS1.75. This is not what I believe advertisers want.
Advertising agencies should consider working backwards. What would your required response/ sales in order to reach your target based on the planned spend? Look at how realistic that sounds. For example, if you have a budget of 50k and 40 million viewers, and you need to sell 4,000, then you must convert 0.01%. This doesn’t seem too difficult. If your conversion rate is 0.02, then you’ve doubled you target.
What is Success?
A minimum conversion target is a way to identify success and determine if it’s achievable. Be aware that there are many other factors to consider. Do you have a strong call for action or offer in your creative? Your channel choice, the advertising time, the length of your advertisement, etc. are just some of the factors that influence the effectiveness of your ad.
Who Benefits Most from TV Advertising?
There are thousands of TV ads I’ve seen. I don’t believe there’s one category or type of advertiser that is more successful than others. I’ve had the pleasure of working across a variety of industries, including entertainment, finance, gaming, retail and home improvement.
We see success!
Me, I am response/sales driven. Because this is how most advertisers measure their success. For me, as an agency, data is important. I want to be able, for example, to show that we did X and it generatedY. While this doesn’t necessarily show all the effects of TV advertising it gives you an indication of how well you are performing.
Clients often ask me to give them an overview. I tell them that all their marketing should be working in tangent, complementing each others, so you can see which business was generated vs what marketing spend. This gives you a great view of your performance.
It is important to note that TV advertising does not allow for everyone to respond within a given timeframe. Minimum half of respondents will respond when it’s convenient and when they feel they have a need for your product or service. This is why they may be exposed to your ads multiple times.
Copyright – Inland Empire Business Network