TV Advertising Proves Its Worth for First-Time Advertisers

TV Advertising Proves Its Worth for First-Time Advertisers

In a bustling city landscape, TV advertising is stepping up its game and attracting the attention of new brands. Recent research from the Video Advertising Bureau (VAB) highlights a fascinating trend: despite the challenges of fragmented viewership and measurement woes, TV ads genuinely boost web traffic for first-time advertisers.

A Surprising Investment Surge

Since 2021, over $4 billion has been poured into TV advertising by 931 first-time advertisers. Yes, you read that right! These newcomers are finding that a spot on the small screen can ignite consumer interest and even convert viewers into customers. The VAB’s report, called “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers”, dives into the effectiveness of this advertising channel.

The Numbers Speak for Themselves

Between April 2020 and April 2024, the VAB evaluated 201 first-time TV advertisers using data to gauge website traffic before and after their TV ads ran. Here’s what they discovered: of those evaluated, 173 brands tracked their website traffic prior to launching their TV campaigns. During the month of their TV debut, these brands enjoyed an average increase of 12% in website traffic compared to six months before. And that’s not all; the boost didn’t taper off either. There was a remarkable 20% increase in monthly unique visitors across the board once their campaigns were underway.

Investment Levels Matter

The report also indicated that results fluctuate based on how much a brand is willing to spend. For instance, the 35 brands that invested $500,000 or less saw an 8% increase in unique users during the launch month and a subsequent average increase of 20% over several months. On the higher end, those who shelled out between $2 million and $5 million witnessed a 9% jump during the launch and 25% later on. In fact, the big players—44 brands that coughed up $10 million or more—experienced a staggering 36% increase upon launch, with a monthly average increase of 42% over the course of the campaign.

Direct-to-Consumer Brands Shine

Interestingly, not all company types reaped the same rewards. Direct-to-consumer (DTC) brands truly excelled during their TV runs, raking in an additional 622,000 unique users monthly. This figure nearly doubles the overall average increase of 387,000 unique viewers that brands experienced!

Investments on the Rise

As time rolls on, it seems like brands are also getting more confident. First-time TV advertisers amped up their investment by 70% in the months following their initial TV ad launch in 2021. This trend continued, albeit gradually, with 54% more investment in 2022 and 37% in 2023.

Key Takeaways

The standout takeaway from all this is the importance of tracking website traffic in connection with TV campaigns. This valuable data reveals the effectiveness of advertising, particularly in driving mid-funnel outcomes like consumer consideration and sales. As Sean Cunningham, president and CEO at VAB, states, “This is hard data around web visits and Google search. These are specific customer actions that had to be performed.”

As the media landscape continues to evolve, it’s clear that TV advertising remains a formidable strategy for brands setting out to make their mark. Despite hurdles like viewership fragmentation, it appears that a well-placed advertisement can serve as a “light switch,” significantly lighting up web traffic.

So, for those businesses contemplating their advertising strategies, dipping into the world of TV might just turn out to be a bright idea.

Author: HERE Hilton Head