TV advertisement facts
According to a recent study by Ball State University on the media consumption habits of average Americans, despite the Internet’s steady rise in popularity over the last few years, television remains the dominant medium in most U.S. households. On average, the general population spends over four and a half hours a day in front of the tube, making TV watching one of the most common modern leisure activities. Is it any wonder then that television advertising is also the most powerful form of advertising?
Advertising on television allows you to show and tell a wide audience your business, product, or service. It allows you to actually demonstrate the benefits of ownership. You can show how your product or service works and how it’s packaged so prospective customers will know what to look for at the point of sale. In advertising, it often takes multiple touch points to effectively influence consumers’ purchasing behavior.
Television advertising has been a popular medium for large retailers ever since the TV first began to appear in living rooms. With the arrival of cable television came lowered production costs and the opportunity to reach smaller, more targeted markets, making it a viable option for small to medium-size businesses as well.
To create an effective television ad, it’s first necessary to have a good script that highlights a strong offer. Ads must also be effectively produced, and it’s for this reason that it’s often better to enlist the services of an advertising agency, which can help you create an entire campaign.
Some of the advantages to advertising your small business on television include the following:
- TV reaches a much larger audience than local newspapers and radio stations, and it does so during a short period of time.
- It reaches viewers when they’re the most attentive.
- It allows you to convey your message with sight, sound, and motion, which can give your business, product, or service instant credibility.
- It gives you an opportunity to be creative and attach a personality to your business, which can be particularly effective for small businesses that rely on repeat customers.
Some Disadvantages to TV Advertising:
For all its advantages, advertising your business on TV does have some disadvantages. Barring late night spots on your local cable television network, no other advertising medium is as likely to eat up your budget as quickly as TV will. Producing the ad, which can include hiring script writers, actors, film editors, or an advertising agency, is only the first step. You must also pay for air time, and because studies have shown that TV ads are most effective with repetition, you’ll almost certainly want to run your piece a number of times. Because of this, most television stations structure their pricing to make it more attractive for you to purchase advertising in chunks. Another disadvantage is how difficult it can be to make changes. Whereas with newspaper advertising, updating sale pricing or a special offer is often as simple as swapping out a coupon, with television advertising it means updating your script and reshooting the entire ad, which costs additional money.
It can also be difficult to effectively target your core audience with television advertising, although there are a few best practices that can help. For starters, consider who your audience is before structuring your ad and purchasing airtime. Is a large portion of your clientele Spanish speaking? If so, you’d do well to purchase airtime on a Spanish-language station such as Telemundo. And if you’re in the baby stroller business, you’re probably better off purchasing time slots during the day when stay-at-home moms are most likely to see your ad.
Joint ANA (Association of National Advertisers) and Forrester Research Inc. (Nasdaq: FORR) survey of more than 100 national advertisers illustrates marketers’ continued lack of confidence in the effectiveness of television ads. And while they still express faith in the future of the 30-second spot, advertisers feel that the fundamentals to support their use is in need of an overhaul. Specifically, they express dissatisfaction with the current measurement techniques, an interest in more targeted ads, and a desire for less ad clutter and more relevance.
Respondents to the Association of National Advertisers/Forrester study of national advertisers said their TV ad spending will remain flat this year. They also reported allocating only 41 percent of their media budgets to television last year versus 58 percent in our 2008 survey. Other findings include:
• A lack of confidence in TV ad effectiveness. Sixty-two percent of respondents think that TV ads have become less effective in the past two years. Clutter is the main challenge to TV ad effectiveness: 69 percent of advertisers would like fewer commercials per pod.
• Renewed faith in the 30-second commercial. Only 19 percent of respondents believe that the 30-second spot will be dead in 10 years, down from 28 percent a year ago.
• A desire for more targeted TV ads but reluctance to pay for them. Seventy-eight percent of respondents say they would be interested in the ability to target consumers more precisely, but only 59 percent would be willing to pay a premium for it.
• Dissatisfaction with measurement. Nearly all advertisers who responded think that the TV industry needs new audience metrics beyond reach and frequency. Eighty-two percent of respondents would be interested in ratings for individual commercials.
• High interest in branded entertainment and interactive media. Eighty percent of advertisers agree that branded entertainment will play much more of a role in TV advertising, and 38 percent plan to spend more on branded advertising in 2010 as an alternative to the 30-second spot. Seventy-five percent of respondents believe that interactive TV will be an effective source of lead generation, but only 28 percent plan to spend more on interactive TV ads in 2010.
“As the overall marketing landscape is in the midst of a massive shift, so is the iconic medium of television,” said ANA President and CEO Bob Liodice. “The standard methods of delivery and measurement need to adapt to what marketers today need: more specificity, greater effectiveness, and more detailed measurement. ROI is one of the most crucial aspects of marketing today, and the processes behind TV must be held to the same scrutiny as marketers.”
“CMOs need to prepare for television’s digital future by forcing change upon the TV advertising ecosystem,” said Forrester Research Vice President and Research Director David M. Cooperstein. “We recommend that advertisers get ready for the future of television by preparing to deliver targeted commercials, delivering true branded entertainment experiences, and embracing the connected TV.”
The survey results will be presented at the ANA’s TV & Everything Video Forum in New York on February 11, 2010. Respondents to the Forrester/ANA survey include 104 advertisers across 21 major industries, representing nearly $14 billion in media budgets. The survey was conducted from December 2009 to January 2010.
The renewal of a TV campaign through search engine results in a significant increase in unaided brand awareness. According to a representative study of advertising effectiveness SEM unit of the Bundesverband Digitale Wirtschaft (BVDW) the rate of increase is 42 percentage points.
TV is the world’s most used medium. Television is five times longer used as print media. The strength is the moving image with sound that can convey emotion like no other medium and move the masses. Brands need to reach your target audience and trigger emotions. TV advertising lets both. No other medium reaches are built up so quickly. TV is still the most effective base medium.
The media scene is changing very fast, and as always there are winners and losers. While independent television stations and local newspapers are fighting a desperate battle for survival, new media concepts such as Crossmedia are in the ascendancy.
Our habits are changing. We are no longer prepared to accept news and entertainment as it is delivered to us. We know what we want, and we know where and when we want it. There are threats and there are opportunities and the prizes will be won by those who are far-sighted and bold – companies as AddonTV involved in switching media frontiers.