Television advertising has been running since the first commercials were aired at the 1940s when the first official paid tv ad appeared in the USA on July the 1st, 1941, over the station WNBT.
Main benefits of TV Advertising
- 1. Immediate credibility.
- 2. Create emotion and empathy. More engaging format.
- 3. Reach large targeted audiences overnight
- 4. Drive customers online
Other topics covered on this reports
- How effective is TV advertising worldwide
- How experts are using television advertising
- Importance of television advertising in the future
TV advertising is becoming more effective due in part to growing synergies with online, especially online video.
Between 1980–1996, adding TV to a campaign led to an average 12% increase in business effects. This increased to 40% during 2008–2016.
In Belgium, TV is 3 times more effective at building brand awareness than YouTube (42% vs 15%).
Since then television advertising has been very influential on consumers mind and has had a lot of power on markets.
It has been very popular among marketers and even in the technological era, it still remains very relevant and effective as a marketing tool.
When a TV commercial showed people chewing two pieces of gum at one time, sales doubled. As people also started to chew 2 at a time, just like they’d seen on TVs
Statistic – Fact
Television advertising spend has its peak before the rise of the internet. Millions have been spent on television campaigns, among the most expensive one there is Channel and Nicole Kidman campaign that cost 33 million dollars (including 3 million spends on Nicole’s pay).
Digitalization of most services will also happen to television advertising, which will translate into a more programmatic way of buying commercial spots.
1. Immediate credibility
Unlike online advertising which is perceived less, television advertising and print mail is considered more trustworthy than digital ads. There is a simple reasoning behind it.
World-known companies have been using tv ads for centuries whereas online is relatively new compared to televisions and unfortunately the internet has gained a bad reputation for itself when it comes to scammers.
By using television advertising over other marketing channels, you might build more credibility and more trust for your brand immediately.
Television and cinema has a glamorous aura like no other media, by employing these channel your brand or company will benefit enormously, especially if you are looking to build brand recognition and prestige. By choosing a format that provides more credibility than any other one, your brand will benefit more.
2. Create emotion and empathy. More engaging format.
By combining music, video, messages and the ability to deliver a complete story, TV commercials are more powerful and engaging than most marketing formats and programmatic paid to advertise. The format manages to create more engaging promotional messages helping brands and stories to be more memorable.
Large corporations and big companies have successfully managed to convey a convincing message to mass audiences thanks to television and appealing commercials.
Coca Cola is probably the most popular brand which it comes to advertising, the Georgia soda company is worldwide known for its attractive and positive commercials.
Other formats such as print ads, online banners are not visually so powerful. Thanks to its video format:
- Grabs attention
- Create emotion
- Visual representation of your company persona
3. Reach large targeted audiences overnight
Trust, message effectiveness and mass audience reach are among the top three advantages of television advertising as opposed to other formats that do not offer such a combination of resources.
Television has the ability to reach masses overnight, millions of viewers gather around the television or computer to every night to watch a show, series or film which means that by running campaign for about a month, a commercial might manage to reach properly its entire audience contrary to other formats such as digital banners or print advertising.
For example, to reach stay-at-home parent you can buy daytime slots, or to reach the young market, you can buy MTV or YouTube spots.
Toy and cereal companies advertise during Saturday morning cartoons.
U.S. TV ad spending was up by 3.1% in 2018, finishing the year at $72.4 billion.
Statistic – Fact
Based on the compiled data, TV reaches approximately 70% of the country’s population a day, 90% in a week and nearly everyone in a month. For example:
- In Finland, television reaches 97% of the population within a month.
- An average broadcast TV campaign (400 GRP) in Brazil gets 797 million views
4. Drive customers online
Television advertising has been leveraged by marketers as a way to drive customers online.
The so-called traditional advertising methods such as billboards, OOH advertising and radio are proved to be very effective at driving customers online and when it comes to transit, street advertising, as well as billboards, are very effective at bringing customers to stores.
The chart above shows how television drives immediate response from customers to websites which varies depending on the sector. Fields like entertainment and retail are leading the charts and it is also very important at what time of the day when ads are shown for optimal results.
Resources such as PPC and SEO are among the top traffic driver online however most customers will need to see your site or brand advertised between 5 to 7 times before making a purchase.
Encouraging customers to visit your site and present it more often would increase your brand awareness and sales.
By reinforcing with TV advertising and the so-called offline channel your product would have more opportunities against your competitors.
How effective is TV advertising worldwide
Commercials are not only a great way to build brand awareness and gain customers trust but also it is a very effective marketing tool. It delivers a very attractive ROI and when used in combination with other formats, it doubles or triples its effectiveness.
Marketers and companies invest every year on TV advertising because it works very well, it makes companies stand out from other competitors that limit themselves to digital and printed advertising, quick way of creating brand recognition.
Several studies carried out in different countries around the world demonstrate many effects on consumers and markets and the positive impact it has on other media. For example:
- In Australia, the average TV return-on-investment is $ 1,70 for every dollar spent.
- In Belgium, TV is 3 times more effective at building brand awareness than YouTube (42% vs 15%).
- In the US, brands such as Airbnb and Fitbit received a major increase in website visits after launching their first TV campaign.
- In France, TV campaigns help advertisers’ web traffic increase by 44%
- In the UK, by adding a television commercial campaign, effectiveness increases by 40%
- German research has shown that when in combination with OOH, radio or print advertising, TV delivers a much higher ROI (+222%, +123% and +112% respectively).
Less than a third (28%) of brands have integrated digital audience data into their TV ad buys, but 68% plan to do so by September 2019
Statistic – Fact
TV advertising would be present for many more years, people would consume television forever maybe the way they watch would change with the evolution of technology which at the moment is shifting towards on-demand and streaming services but I personally consider it a form of television which certainly offers the same possibilities as traditional television with the option of being more customized to each viewer.
For example, YouTube delivers ads according to users browsing activity and interests.
According to ThinkBox, television advertising is more effective than ever, partly thanks to the ability to combine a TV campaign with other marketing channels which ultimately work together to boost each other’s effectiveness.
TV’s advertising impact on business has actually increased by 400% since the 80s.
When it comes to the most profitable media channel, TV advertising seems to be farther ahead as opposed to other formats including online which these days are receiving a very favourable treat from marketers. TV advertising generates over 70% of all ad-generated profit.
Running an advertising campaign on television can require a big investment but doubtlessly the media could rocket your brand’s sales. Whether in the short term or the long, it delivers the most profit at the greatest cost-efficiency.
According to Thinkbox, every major study regarding advertising effectiveness proves that TV outperforms all other formats.
- Television advertising could make a great investment for your brand, and it is the most effective medium according to a study carried out by Les Binet and Peter Field
- TV advertising is becoming more effective due in part to growing synergies with online, especially online video
- Between 1980–1996, adding TV to a campaign led to an average 12% increase in business effects. This increased to 40% during 2008–2016
How experts are using television advertising
- Create trust. Television is one of the most notable marketing formats, therefore, it is more effective at building trust than most promotional formats.
- Persistence. Companies like Coca Cola have been using continuous advertising to consolidate their position in the market.
- Channel choice. There is a multitude of television channels where you can reach any type of audience, from children cartoon shows to televised sports and documentary film or morning shows to stay-at-home parents.
- Loyalty. Television advertising has helped many brands to increase loyalty and product recognition over competitors.
- Drive customers online. Television commercial campaigns are good at driving customers online.
Importance of television advertising in the future
Many think that as consumers spend more time online, tv advertising would suffer in the near future. However, I think that thanks to the digitalization of TV, streaming services, it will actually have a positive impact.
Thanks to smart tv, streaming content, subscription channels, advertising creatives can now conceive a more tailored and relevant content to their target audience.
The future of TV advertising and commercials is undergoing a transformation much like most services these days as consumers tend to more digitized options.
However, commercials, as we know, will be able to reach target audiences more precisely, having more control over airing times.
For example, traditional advertising commercials are delivered at a certain time and a channel, thanks to a smart TV in the future advertisers would be able to deliver those ads to just a particular group of individuals instead of all the viewers at that time, be selecting a smaller audience, this would result in higher ROIs.