TV advertising has two main advantages. Brand recognition and response. It allows you to reach new customers and build the loyalty of your customers who are already loyal. It also drives sales or response. You could say that all advertising is at the very least one of these advantages.
What is it that makes Television Advertising Different?
Why is TV so different? I’d suggest it’s due to the effectiveness of the message. It’s known for a long time that video, which is a mix of sound and vision makes the most effective marketing messages. And then the impact! A single commercial on TV could reach millions of people within the 30″ period. I’m not sure if Google as well as Facebook could reach 8.3 million people to the UK within 30 seconds.
You might think that it’s a good idea, but isn’t it really costly? But you’re mistaken! Sure, you can spend a lot of money on advertising for TV, however, you can also spend lesser amounts.
What is the biggest TV advertising Gain?
Its greatest benefit is the cost. The average cost per view of a television commercial will be less than half of a cent, 0.5p! For a better understanding that, the vast majority of digital videos start at 2p per video and 4x the amount!
Since TV is able to reach huge weekly, daily and monthly viewers, it can be less expensive. Television advertising costs are determined by the supply (your total number of viewers who are watching television on a channel or region as a percentage of the audience) in comparison to demand (the budget of all advertisers looking to promote on the channel and the audience).
Demand vs Supply
For instance 600 million viewers x 30 million dollars spent on advertising = £10 CPT, or cost per 1,000 viewers.
Supply vs. Demand = Cost
The more viewers watch TV the less expensive advertising costs If the viewing rate decreases, it will increase the cost.
When demand is very excessive, for instance in the time of Christmas, this will increase the price. If demand is less for instance during the summer or due to external factors like COVID, the cost will decrease.
The effects of COVID
Since COVID was introduced the market for television has been able to reduce its costs automatically and you do not need massive discounts to save. The fact that there’s less demand, the cost is down by 50% in certain months Year-on-Year.
This is a major advantage for advertisers by deciding to spend more money on advertising when it’s less expensive, you’ll get better value for your money.
TV Commercials Give You a Lot of Options!
Another benefit is the flexibility! Channel selection to promote around. SKY Media represents over 150 channels. ITV1 has a range of regional choices in addition to their own channels on digital. Channel 4 has a mix of digital channels as well as some specific macro-targeting options.
With Sky offering a variety of channels, there are plenty with relatively low numbers of viewers, which means that the starting cost of an advertisement could be as low as £3 for a 30 seconds. On the other hand, you can pay for a national advertisement on Coronation St on ITV and have more than 8 million viewers. This can cost thousands of pounds for one ad.
With ITV1 you can choose to target your ads geo-specifically which allows you to promote in the northeast region of England exclusively or in London exclusively or in a mix of regions, based on your store’s location.
TV advertising is trackable!
The responses to TV advertisements are tracked and likely to be the most effective offline method for tracking response because of the effectiveness of ads and the large viewers you’re able to reach. If you’ve placed an advertisement placed in a prominent spot in the morning, you’ll get a response to your website or telephone number within a matter of minutes. If you know what the price of the advertisement and the amount of responses you’ve received, it’s not difficult to figure out the cost per response.
TV Advertising Delivers Fame & Trust
We all know that when we see an advertisement on television that it has to be authentic, and you shouldn’t claim to be true if you don’t. When we receive an offer or savings we know it’s authentic. Television exposure provides the impression that your company is doing well since it’s seen as costly. This is a huge benefit for advertisers and is among the reasons you should advertise in times of recession. People will be more confident that your company is doing well even if the economy isn’t.
When searching for TV advertising companies make sure you get in touch with the experts at southwestfilm.co.uk
What are the disadvantages of Television Advertising?
One of the biggest drawbacks of advertising on TV is that I feel that the production time of television ads could be a bit slow. For many first time advertisers the legal clearance process could be unsettling, especially in the event that your production company does not have much prior experience in the process of clearing TV commercials.
It’s not easy to understand It can be confusing, as there are lots of technical terms advertisers may not have come across before. We exchange TVR’s or television ratings. It’s an industry standard, and it’s easy enough to explain however, it could be too technical for certain.
Costs could soon rise dramatically. You can purchase ads for as little as £3 however, you could also spend up to 50k on an ad. So how can you tell if that you’re getting the right bargain or paying the correct cost? Are you paying too excessively or not enough? It’s the job of an agency to handle this for you.
The Things TV Advertisers don’t Recognize!
The amount you pay for isn’t always what you will get. Television broadcasters don’t know how many viewers will see the advertisement until it the broadcast has ended, so they make estimates and, consequently they may overestimate or undervalue the impact of your advertisement.
You’ll only know after the campaign is finished. If I put 20k into television advertising, I might receive 22k in value, or 18k. It’s not actually earned or lost, but it is the equivalent of a debt or trade credit. If the value isn’t enough, I may request a higher value for a future campaign. If it’s over, I might need to lower the value of an upcoming campaign.
It is the Job of a Good Agency
It is important to make sure that you get the best value is. Some companies will deliberately try to deliver more than they promise in order to audit against discounts higher than what they are buying, it can result in an extremely grey zone. Are you actually getting the price the company promised?
Are TV ads for everyone?
It depends. I frequently ask if you are willing to advertise on TV? Does your website perform effectively? Do you have a solid online presence and campaign? Retargeting campaigns in conjunction with television as well as PPC campaigns can produce amazing results, and often reduce costs of PPC.
Are you focusing on B2B more than B2C? It’s true that there are television options for B2B however B2C companies typically see the most benefits.
Do you think your brand needs an update? Perhaps this can be tied to new TV ads and messages?
It’s obvious that cost is important, however as I’ve already mentioned there are a lot of low-cost alternatives for TV, but when you plan to promote across multiple ITV1 regions to promote various retail outlets, it could rapidly increase to six figures.
It’s much more like a list. are you in the best situation to watch TV in order for the greatest benefit from it.
Why do some people write off TV Commercials?
Television advertising is usually dismissed as excessively expensive, without any thought. this is perhaps my biggest pet peeve. Many of the advertisers I talk to when we talk about the affordability of TV advertising be, they realize it must be considered in their marketing plans.
What Kind of Return or ROI will I get from TV ads?
Perhaps the most important query that new advertisers are looking to answer is this. There are many cases studies available that are available on the Thinkbox website, but they culminate with a report that shows TV ads as the top-performing offline marketing channel with an ROI of £1.75. But I’m not convinced that it’s the type of advertising that advertisers are seeking.
What I suggest for advertisers to do is figure backwards on the budget you have set What would you require for responseor sales to meet your goal? Consider how realistic it is in the case of spending $50k and gaining forty million viewers, if require 4,000 in sales then you’ll have to convert 0.01 percent of viewers, which isn’t impossible to attain. You could even go on to state that if you achieve an average ratio of 0.02 and you’ve surpassed the goal.
What does success look like?
With a goal for conversions and identifying what success is and what doesn’t, and determine if it’s possible. Be aware that there are numerous other elements to think about. Your design, is it a strong one? Does it include an effective appeal or an offer? The choice of the channel, time of day when you run your advertisement as well as the duration of your advertisement to name some.
Who Do Television Advertising The Most Benefit?
Through the thousands of TV ads I’ve worked on, I’m not convinced there’s one specific type of advertiser who gets the greatest benefit. I’ve worked with Motor, Retail, home improvement, entertainment gambling, Financial services, travel and more to name some, and all have performed exceptionally well on television.
What Success Means to Us!
Personally, I tend to be response/sales driven. Since this is the way the majority of advertisers evaluate the effectiveness of their advertising. As an agency, I would like to provide data showing that we performed X, and it resulted in the following. It doesn’t reveal the full effect of advertising on TV, but it can give an indication of your performance.
I frequently tell our clients, the ideal way to approach is to look at an overview of your marketing. Ideally, all of your marketing needs to be tangent and complementing each other in a way you are able to see the amount of business created versus your marketing budget and will give you an excellent overview of your results.
It is vital to note that when it comes to something like television advertising there is a chance that not everybody will respond to your advertisements within a time-frame. The majority of people will be responsive at times that are convenient for the viewer and at times when they believe they require your service or product. Part of the process is getting exposed to your ads multiple times.
With TV, you can get immediate responses, but it is only a small portion of the picture.