TV Advertising: At the Heart of Business Growth

TV remains the beating heart of a consumer’s path to purchase, yet its effectiveness is amplified when used as part of an integrated, multi-layered advertising strategy.

This was the belief expressed throughout today’s Payback 4: Pathways to Profit event held by Thinkbox in partnership Ebiquity, with the efficiency of TV advertising as a generator of profit another key topic of discussion.

The Value of TV Advertising

TV’s value to the national economy kicked off proceedings, with Nicole Greenfield-Smith; Research Controller at Thinkbox, demonstrating that for every £1 spent on TV advertising £6 is produced for the economy.

“Advertising is a positive force,” she argued, “in that it drives competition… Stimulates market growth, demand, exports and employment.” Greenfield-Smith also stressed the social benefits of TV advertising; namely its ability to stir awareness around key social issues and educate viewers on matters of public health and safety.

TV: A Safe Investment

TV delivers the best ROI for businesses, with every £1 placed into a television campaign generating £1.70 for the advertiser; 15% more than radio, its closest competitor. Additionally, TV pays back for longer. According to Greenfield-Smith, 50% of profit returns delivered through TV occur after the first year of advertising activity. Long term, brands that utilize TV as part of their advertising strategy experience an average profit increase of 140%, suggesting that businesses need time, patience and continual investment to really enjoy the considerable fruits of the medium.

This is not to say that TV advertising ranks lowly in its short-term benefits.  A marketing campaign that includes television is 6x more effective than one that doesn’t, with 71% of all ad-led conversation derivable from TV and 68% of all online response being driven by the small screen.

TV Advertising and Online

When it comes to media integration, TV and the internet are the dream team. Television has a significant halo effect, flexing its influence across other mediums to drive customer interaction. This is particularly evident when TV advertising is used in tandem with online, with campaigns utilising this partnership twice as effective than when TV is used with any other medium.

To add context, in 2005 just 2% of brands advertising on TV used a “call-to-online”, however, with the efficiency of direct response doubling between 2006 and 2010, last year saw 16% of businesses running TV campaigns that implemented the same mechanism. In short, we have entered a golden age of TV as a direct response medium; its effectiveness becoming ever more clear to advertisers.

New Opportunities

But there are certain opportunities yet to be taken. Brands are still exercising far too much caution when it comes to using social media as a supplement to TV; which according to Rob Beevers, Client Partner Digital at Ebiquity, means missing out on deepening the bond between brand and consumer whilst losing the opportunity to increase brand visibility.

The same can be said for VOD, which has developed into a highly effective companion for TV advertising given its capacity for incremental reach. Video On-Demand enables advertisers to reach younger, more upmarket viewers who traditionally watch most of their TV online. Please keep your eyes peeled for our upcoming feature on VOD.

If we also factor in the advent of new targeting technologies such as Sky Adsmart, which allows advertisers to select their target audience with unprecedented specificity, and it becomes apparent that, despite the already substantial range of opportunities available through TV, there is even more scope to improve the efficiency of a television campaign.

Conclusions Drawn

Ultimately, the most successful TV advertisers are those whose campaigns reach the viewers of relevance to the product or service being promoted. State the bleedin’ obvious, why don’t we? Well, actually, there are far too many examples of businesses that haven’t taken the time to truly consider the key characteristics of their target audience.

We believe an accountable approach to communicating identifiable messages that reach viewers in the domains natural to them is the essence of a successful campaign, and this is where Guerillascope excels. Targeted TV advertising that uses the ever-increasing fragmentation of TV audiences as a tool is a recipe for boosted ROI, and with consistent investment across multiple, integrated, platforms, brands now have more power than ever before to drive strong business growth.

To learn more about how Guerillascope can help, call our TV advertising experts today on 020 7352 0555. Alternatively, start planning your TV campaign with our quick and painless briefing form.