TV Advertising: A Game Changer for First-Time Advertisers

TV Advertising: A Game Changer for First-Time Advertisers

Welcome to the heart of marketing news! Today, we’re diving into something that could change the way brands think about their advertising mix—particularly television advertising. In recent findings from research conducted by the Video Advertising Bureau (VAB), it seems that even amid a world of fragmented viewership and challenges, brands are still putting their money on TV. That’s right! Over $4 billion has been poured into TV advertising by 931 first-time advertisers since 2021. So why is this traditional medium still getting so much love? Let’s find out!

TV: The Traffic Booster

One of the key pieces of good news from VAB is that TV advertising can actually help drive traffic to websites. This is particularly true for brands just dipping their toes into the television waters. Sean Cunningham, the president and CEO of VAB, boldly stated that “It’s irrefutable hard data that multi-screen TV works like a light switch with respect to building customer traffic.” It seems that brands are discovering that the impact of TV commercials goes beyond just being visually appealing—the results are measurable and significant.

Understanding the Numbers

In the report titled “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers,” VAB evaluated data from 201 first-time TV advertisers between April 2020 and April 2024. Out of these brands, 173 tracked their website traffic before launching their TV spots, while 28 didn’t track at all. The exciting news? Those that measured their website traffic saw an average jump of 12% in traffic during their TV debut month compared to the six months prior!

Speaking of sustainability, brands that promoted themselves on TV continued to enjoy the benefits, witnessing a total increase of 20% in unique monthly visitors when looking at data beyond the launch month. That’s quite a boost for a first-time campaign!

Investment Variations

When it comes to TV spending, results were varied, which only adds to the interesting story. Brands that invested up to $500,000 typically saw an impressive 8% increase in unique users during their launch month. Meanwhile, those who upped the ante and invested between $2 million and $5 million experienced an average 9% increase, along with an ongoing average boost of 25%.

For the big players, those dedicating more than $10 million to their advertising efforts witnessed a staggering 36% increase in the month of launch and an ongoing average increase of 42% throughout their campaigns. Talk about making a splash!

Direct-to-Consumer Brands Shine

What’s really fascinating is that not all brands are created equal when it comes to TV ads. Direct-to-consumer (DTC) brands are taking the cake, showing a monthly average increase of 622,000 unique users. This number is almost double the overall average increase of 387,000 viewers from other brands. So, it seems DTC brands are leveraging this traditional medium with incredible success!

Investment Trends Over Time

Interestingly, while initial investments from first-time TV advertisers jumped by a whopping 70% in the months following their TV debut in 2021, we see a slight decline year-on-year. In 2022, investments still increased but at a slower rate of 54%, and in 2023, it dropped to 37%. The data suggests that while brands are intrigued by the effectiveness of TV advertising, they may be cautious about continuing the trend at such high spending levels.

The Takeaway

In the end, the results of VAB’s research underline a crucial point: measuring website traffic in relation to TV advertising is incredibly valuable. It gives advertisers a clear picture of how well their campaigns are performing in terms of consumer interest and sales. Sean Cunningham summed it up perfectly when he stated, “This is hard data around web visits and Google search. These are specific customer actions that had to be performed.”

As the landscape of advertising continues to evolve, it looks like television might still have a special place in the hearts (and wallets) of advertisers who aim to make a lasting impression. So, the next time you see a TV ad, remember that it might just be the spark that ignites a brand’s journey toward success!