TV Advertising Still Sparks Interest Despite Fragmentation

TV Advertising Still Sparks Interest Despite Fragmentation

Welcome to the bustling city of San Francisco, where the air buzzes with the latest trends and innovation. It’s a place known for its tech-savvy residents, and it seems that businesses here are keeping their fingers on the pulse of marketing strategies. A recent study has shown an intriguing trend: even as viewing habits evolve and fragment, TV advertising remains a powerful tool for brands, especially those diving into this channel for the first time.

The Numbers Tell the Story

According to research conducted by the Video Advertising Bureau (VAB), over $4 billion has been poured into TV advertising by 931 first-time advertisers since 2021. That’s no small feat! These brands are recognizing that there’s something special about the magic of television—especially when it comes to driving traffic to their websites. The research suggests that for these advertisers, launching a TV ad does more than just attract viewers; it can significantly increase online engagement.

A Light Switch Moment

Sean Cunningham, the president and CEO at VAB, notes that the data clearly illustrates how multifaceted TV advertising contributes to generating customer traffic. He said, “It’s irrefutable hard data that multi-screen TV works like a light switch with respect to building customer traffic.” This means that launching a TV ad can switch on a stream of visitors to a brand’s website, leading to an increase in interest and sales.

Examining the Launch Strategy

In evaluating the journeys of 201 first-time TV advertisers from April 2020 to April 2024, the report found some fascinating insights. Of these brands, 173 measured their website traffic before launching their ad, while 28 didn’t. For those that tracked their numbers, there was an average 12% increase in website traffic during the month they debuted on TV, especially when compared to the six months leading up to the launch.

Staying Power

But wait, there’s more! After debuting on TV, brands continued to see results. Over the months following their launches, there was a notable 20% increase in unique visitors compared to the prior six months. This demonstrates that the benefits of a TV ad can extend well beyond just the launch month.

Dollars and Results

When it comes to the impact of monetary investment on these campaigns, the results vary. Brands that spent $500,000 or less saw an average increase of just 8% during their launch month, but this climbed to 20% over the following months. On the flip side, those that invested between $2 million and $5 million had a launch month increase of 9% and averaged a 25% increase over time. Interestingly, the big spenders—those investing $10 million or more—enjoyed a staggering 36% increase in their launch month, with a whopping 42% average increase in monthly traffic thereafter!

Who’s Winning?

It seems that the type of company also plays a role. Direct-to-consumer (DTC) brands are hitting it out of the park, achieving an average increase of 622,000 unique users during their TV campaigns, almost double the general average of 387,000. This highlights just how impactful TV can be for the right kind of business.

Looking to the Future

As we move further into 2023, it’s evident that companies continue to adapt their investments in TV advertising. While first-time advertisers jumped in with investments increasing by 70% after their TV debut in 2021, there was a gradual decline in subsequent years, with increases of 54% in 2022 and 37% in 2023.

The Takeaway

The study emphasizes the value of tracking website traffic in relation to TV advertising. By doing so, brands can glean valuable insights about their campaigns and adjust their strategies accordingly. As Cunningham points out, all of this data relates back to customer actions—elements that can significantly shape mid-funnel results, including consideration and sales.

Overall, it’s clear that despite the ever-evolving landscape of advertising, TV still holds its ground as a viable channel for brands looking to make a splash in the market.

So, whether you’re a budding entrepreneur or a seasoned marketer, it might just be time to consider the bright lights of TV!