Television advertising for many years was the favourite format for both companies and advertisers. Tv commercials have also become a creative and original way of presenting products.
Award such add on, acknowledge some of the best ads and agencies each year. But how effective television advertising is?
For those ones who are not very familiar with the ins and outs of television advertising, the first official paid Tv commercial aired in the US in 1941 and today it is still the most dominant format attributing to 37% of total global ad spend in 2015. Even so, it is expected that companies will spend more on digital advertising than TV for the first time ever.
- U.S. TV ad spending was up by 3.1% in 2018, finishing the year at $72.4 billion.
- 59% of marketers said that they will be increasing their budgets for advanced TV, including data-driven linear TV and addressable TV.
- In the long-term (3 years after the campaign was over), 86% of the campaigns resulted in a profitable return
- And in the long-term, in the three years after ad campaigns had finished, 86% of TV advertising campaigns delivered a profitable return.
No other marketing format is more engaging and capable of driving consumers than video commercials. Thanks to the combination of sound, motion and music, it manages to build an emotional connection with audiences. That is why television is so powerful and effective.
Is television advertising still effective? Television advertising remains very effective and it is definitely amongst the top best performing marketing channels.
U.S. TV ad spending was up by 3.1% in 2018, finishing the year at $72.4 billion.
Statistic – Fact
1. How effective is TV advertising?
ProfitAbility: the business case for advertising’ (2017), by Ebiquity and Gain Theory, found that television advertising:
TV advertising remains at the forefront of advertising, when combined with a digital advertising campaign and a conversion rate optimization programme, it is proven to deliver some of the highest results that any marketing material could offer.
According to Thinkbox, television advertising is responsible for generating over 70 per cent of all profit derived from any marketing and promotional efforts. Television is great at building customer engagement thanks to its combination of pictures, music and messages.
A research carried by TiVo shows a clear correlation between a lowering in sales and decrease in television advertising spend, not only TV advertising has an immediate impact on sales but also it is proved that it manages to significantly enhance the impact of digital advertising.
AccordingeMarketer, it is expected that US TV will be transitioning to a programmatic format by 58%, an estimated of $2.77 billion.
Statistic – Fact
While TV is regarded and backed by statistics as the most effective method to achieve KPI’s to drive sales, profit and gain market share; it works much better when used in combination with a digital marketing strategy.
There are several alternatives which might return a higher profit, search engine optimization ROI goes from somewhere between 50% and 5000% according to a Quora article.
On the other hand, PPC, which is very popular these days, shows an average return of 2 dollars per every dollar spent. Print advertising ROI is much lower with an&nb