+ August 31, 2018
The Value of TV Advertising
A brief look into the value of TV advertising from a learning Graduate Trainee at The Village Communications.
With the powerful emergence of online video from sites such as YouTube, watching video content has never been easier. This has created a very competitive market, giving TV a lot to compete with. Therefore it begs the question, what is the value of TV advertising?
TV advertising is still a crucial channel to utilise when marketing your brand. Using ThinkBox TV, a powerful TV advertising research website, I am going to try and establish its value.
Even with the emergence of online video sites, TV still accounts for 71% of the average person’s video diet, accounting to 95% of AD viewing time. People are watching TV, but more importantly are watching the adverts displayed in the ad breaks. With online video formats, there is an ease to skip over ads. Programs such as ad blocker makes seeing ads impossible, and on most sites you can simply click the skip button after 5 seconds. This makes it hard for advertisers to get audiences to engage with their adverts, and sometimes even watch them.
People are clearly still watching TV, although with new technological advances the traditional way of viewing TV is changing; 56% of the UK have watched TV on another screen which is not in the living room. BVOD is becoming extremely powerful as well, it delivers additional viewers – 1.6 on average across all platforms. BVOD should therefore be considered when undergoing any marketing campaign, especially when targeting the 16-34 demographic as 46% of BVOD viewing is by them. TV is therefore still effective when trying to reach large audiences, and these audiences are still engaging with TV as a medium, albeit the way we engage may have changed.
TV therefore still has the potential to reach large audiences and delivers highly on AD viewing time. It’s common knowledge however that TV is a very costly channel to enter into, and advertisers will need a big budget to afford a powerful TV advertising campaign. Taking this into consideration, ThinkBox’s research has found that TV is the most cost-efficient longer-term channel. Using TV in a brand response campaign can have some very effective long-term results. This shows the huge cost benefits of using TV, especially when you factor in the cost of setting up this type of campaign to begin with. Furthermore, 70% of TV advertising campaigns deliver a profitable return, therefore showing how ‘safe’ advertising through TV can be, highlighting that it is still a cost-efficient channel.
TV is a very creative medium. With the use of narratives, visuals and sounds you can build emotion within your audiences. This helps to build up a relationship with your audiences and therefore improve brand integrity and worth. The offline impact is huge, and drives one of the highest offline responses of any advertising medium. TV advertising drives 51% of all marketing-generated conversations. People like to talk about a TV advert, and if you can get creative and make a memorable ad, it can have huge offline benefits. TV can also create a response online, and is responsible for 33% of all media-driven interactions for brands on Facebook. This is hugely important if you were launching a brand, or were looking to raises brand awareness.
TV advertising can therefore still be looked at as one of the most powerful channels for advertising, and with the creative freedom available to advertisers, targeting audiences can be extremely impact-full on both the brand image, and its profitability.