TV Advertising Still Shines Bright for First-Time Advertisers

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TV advertising in New York featuring diverse brand promotions

TV Advertising Still Shines Bright for First-Time Advertisers

In the bustling city of New York, a recent report beautifully unveils how TV advertising continues to charm brands, especially those taking their first leaps into this vibrant medium. The findings, gathered from a study by the Video Advertising Bureau (VAB), shed light on how TV can boost web traffic, even amidst ongoing challenges like viewership fragmentation and measurement concerns.

Shedding Light on Data

According to the VAB, it seems over $4 billion has been funneled into TV advertising by 931 first-time advertisers since 2021. That’s a big number, and it’s all about the potential TV holds to spark consumer interest and elevate brands.

Sean Cunningham, the VAB’s president and CEO, shared that the connection between TV and web traffic is like flipping a light switch. He emphasizes, “It’s irrefutable hard data that multi-screen TV works.” The recent report titled “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers” evaluated 201 first-time TV advertisers over a four-year period. Talk about thorough research!

Impressive Increases in Web Traffic

The report highlights that of those 201 brands, a whopping 173 had measured their website traffic before launching their TV campaigns. Those brands experienced a 12% surge in traffic during the very month they went live on TV! And the excitement didn’t stop there; they maintained a remarkable 20% increase in unique visitors for several months after their campaigns kicked off.

It’s important to note that the results varied significantly depending on how much money each brand invested. For instance, among the 35 brands that spent $500,000 or less, they still managed an average of an 8% increase in monthly unique visitors during the launch month. Meanwhile, those who splurged between $2 million and $5 million saw an average hike of 25% over time, whereas the champions—those who spent $10 million or more—enjoyed a stellar 36% increase right from the launch month!

The Winning Mentality of Direct-to-Consumer Brands

But wait, there’s more! The type of company also plays a pivotal role in how well they do in the TV arena. Direct-to-consumer (DTC) brands are knocking it out of the park, seeing an average increase of 622,000 unique users each month, almost double the average of 387,000 unique viewers. Clearly, DTC brands know how to leverage their TV presence!

Building Investment Confidence

Now, let’s talk about investment trends. First-time TV advertisers ramped up their backing by a staggering 70% in the months following their TV debut in 2021. While the enthusiasm was undeniable, it gradually decreased in subsequent years—with increases of 54% in 2022 and 37% in 2023. It seems that while brands are enthusiastic about diving into TV, they’re also becoming more cautious as they analyze results.

Measuring Success

A standout finding in this research is that measuring website traffic alongside TV advertising offers vital insights for brands. Cunningham notes that these metrics are invaluable in gauging how well a campaign is generating mid-funnel results—think consideration and actual sales. “These are specific customer actions that had to be performed,” he said. When brands understand their web traffic trends, they can optimize future campaigns, making their marketing dollars go further.

Looking Ahead

As the advertising world continues to evolve, other trends like retail media and ad-supported TV seem to be stabilizing, while some new ventures, like experiments in AI, are heating up. With the right strategies and improvements on measurement capabilities, it’s clear TV advertising isn’t going anywhere anytime soon, especially for brands keen to make their mark.

So, if you’re a brand considering your first TV campaign, don’t shy away! With careful planning, a splash of creativity, and a dash of measurement, you might just discover the kind of magic that draws in consumers and lights up your website traffic!

HERE Newberry
Author: HERE Newberry

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