TV Advertising Still Shines in the Digital Age

TV Advertising Still Shines in the Digital Age

In the bustling city of New York, the world of advertising is changing rapidly, yet one traditional method still proves its worth—television. Recent research conducted by the Video Advertising Bureau (VAB) reveals that despite viewer fragmentation and various challenges, TV advertising remains a strong contender for brands looking to reach new audiences and increase their web traffic. In fact, over $4 billion has been funneled into TV ads by 931 first-time advertisers since 2021. Isn’t that impressive?

The Power of TV in the Age of Screens

Sean Cunningham, the president and CEO of VAB, emphasizes the undeniable effectiveness of television advertising. He states, “It’s irrefutable hard data that multi-screen TV works like a light switch with respect to building customer traffic.” This sentiment is echoed throughout their groundbreaking report titled “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers.” The report explored the experiences of 201 first-time TV advertisers by analyzing Comscore website traffic data from April 2020 through April 2024.

Traffic Trends and Insights

The findings were fascinating. Among the advertisers tracked, 173 brands measured their website traffic before launching their TV ads, while 28 did not measure at all. The outcome? Brands that proactively kept an eye on their website traffic enjoyed a remarkable 12% increase right after their TV debut, compared to the six months leading up to it. Moreover, this surge wasn’t just a temporary blip. They continued to see a notable 20% increase in unique monthly visitors over the following months post-launch. This shows that being featured on TV can generate sustained interest and keep potential customers returning to the site.

Investment Matters, but So Do Results

Interestingly, investment amounts played a significant role in the observed outcomes. For example, 35 brands that invested $500,000 or less experienced an average increase of 8% in unique users during their launch month, followed by an ongoing monthly average increase of 20%. Those who escalated their budgets to between $2 million and $5 million saw a average launch month increase of 9%, with a sustained increase of 25% per month thereafter. Remarkably, brands investing more than $10 million reaped even greater rewards—an astounding 36% increase in launch month traffic and 42% thereafter.

Direct-to-Consumer Brands Leading the Pack

Another noteworthy detail from the report was the performance of direct-to-consumer (DTC) brands. These companies almost doubled the average traffic increase seen by traditional brands, pulling in an impressive 622,000 unique users monthly while running their TV campaigns. In comparison, the overall average for all brands was a decent 387,000 unique user hike. This just goes to show how powerful TV can be for companies looking to directly appeal to consumers.

Increased Investments Over Time

Another finding showed first-time TV advertisers steadily ramped up their investments post-debut. In the months following their launch, advertisers increased their budgets by 70%, followed by 54% in 2022 and 37% in 2023. This trend showcases how brands recognize the value in the television platform and are willing to invest more to maximize their outreach.

Wrapping It Up

The takeaway from this research is crystal clear: measuring website traffic in tandem with TV advertising can provide brands with critical insights into their campaign efficacy. As Cunningham puts it, “This is hard data around web visits and Google search. These are specific customer actions that had to be performed.” With advertising strategies evolving, understanding the impact of traditional mediums like TV is more crucial than ever for any brand looking to make a mark in today’s competitive landscape.

The advertising world continues to shift, with retail media and ad-supported TV likely to grab more attention in times to come. This means one thing: the story of TV advertising is far from over. Consumers and brands alike should stay tuned!

Author: HERE Lexington