Advertising on broadcast television is expensive. For example, his 30 second national slot in peak hours on ITV can cost almost £30,000. Channel 4's peak time ad prices range from £9,000 to his £21,000. Ads are also much more affordable during off-peak hours and on channels with lower viewership, but his 30-second 'breakfast' slot on C4 costs just £500. Brands seeking a wide audience can easily spend hundreds of thousands of pounds on advertising. Month-long TV advertising campaign.
Marketers have traditionally justified such large expenditures with the promise of reaching a large and diverse consumer base. However, given the rise of streaming services and the decline in traditional TV viewership in the UK, marketing executives are beginning to scrutinize the return on investment in broadcast TV advertising campaigns.
Experts agree that the landscape is changing and marketing teams need to take advantage of the new opportunities presented by video on demand (VOD). But is advertising on traditional broadcast TV still worth it? While some think marketers are better off focusing on VOD and streaming, broadcast TV can be used creatively to Some believe that the channel will remain an important part of the marketing strategy.
Broadcast TV advertising remains valuable, but marketers need to get creative with their use
kim costello
Chief Marketing Officer, Pendragon
There is definitely room for advertising on TV and it should form part of many brands' advertising and marketing mix. But that's the point. Television forms part of the mix. It's just one channel, not the only channel.
Before deciding whether TV is essential to your marketing mix, you need to have a clear baseline understanding of where your sales are, or what your sales would have been without your media investment. there is. Next, you need a clear understanding of the current synergies and how they change with the addition of targeted TV. Television advertising is one of the more expensive channels and should be used in a calculated manner. To understand ROMI and support overall business goals, you need to create the right reports. As marketers, we not only need to be able to justify every pound spent, but we also need to demonstrate the impact of his ROMI on the wider business.
Once you acquire customers with your TV campaign, you can run follow-up ads on other platforms.
There is still a very clear correlation between TV advertising and euphoria, and there is no question that targeted TV advertising has a direct impact. This is especially true during live events such as soccer matches, live news broadcasts, and reality show finals. The key is to target broadcasts that people simply don't want to play. As an example, it is well documented that brands with healthy budgets to advertise during the Super Bowl or Euro Finals particularly benefit from these significant increases, and within the industry It's a hot topic.
Naturally, advertising during these events is very expensive and not possible for all companies. That makes VOD a great option for brands looking to reduce advertising costs during these expensive live events. Ideally, VOD and live streaming can be combined to target audiences more strategically and affordably. This has given us excellent results in Pendragon.
While VOD and live streaming services allow you to specifically target audience segments and locations, research shows that many customers tend to use dual screens while watching TV. This is where omnichannel advertising campaigns can really work for your brand. Once you've captivated your customers with your TV campaign, you can deliver follow-up ads to other platforms your customers are using on their second screen, such as smartphones, tablets, and laptops. With this strategy, your customers are much more likely to follow the action you're trying to take than if you only run ads on TV.
My most recent project was the rebrand and launch of CarStore, supported by a TV campaign. The campaign resulted in a 57% month-over-month increase in online inquiries and exceeded the target voice share across all active channels listed above in the first month.
One thing to note is that omnichannel campaigns are less effective on their own than when combined with targeted television. As soon as you switch off the TV, your campaign performance will drop. Today, television plays an important role in the mix of marketing channels, but it's not the “television” of yesteryear.
TV viewing preferences are evolving and advertisers need to adapt their strategies
Sam Wilson
Managing Director, CTV, EMEA, Magnite
Alarm bells were rung for some advertisers last year when Ofcom revealed a record 4% year-on-year drop in weekly viewership for UK TV broadcasts. This doesn't mean people stop watching TV altogether, but it does mean that their viewing preferences are shifting away from traditional broadcasts. For this reason, advertising on traditional broadcast television is no longer worth the high cost. Advertisers need to evolve beyond traditional terrestrial and broadcast television to find their audiences wherever they watch.
But broader television is not a dead market for advertisers. Research shows that the majority of UK viewers are using streaming TV instead of broadcast TV. Economic headwinds have driven consumers toward FAST (free ad-supported television), as they embrace the value exchange of watching ads for free access to high-quality television content.
More viewers are also watching via smart TVs, giving advertisers the opportunity to consider new ad formats such as home screen tiles.
Advertisers need to evolve beyond traditional terrestrial and broadcast television to find audiences who are watching.
The digital nature of streaming TV also makes it a very powerful tool for delivering more relevant ads and increasing advertising efficiency. Viewers actively participate in the stream and choose the content they want to watch. Understanding audience behavior helps programmers and advertisers build stronger connections with viewers through more contextual and personalized experiences.
The advantage of combining streaming TV with programmatic execution of ad campaigns is that it provides advertisers with greater control and flexibility. Streaming buyers can get campaigns up and running within minutes, adjusting budgets along the way to take advantage of spontaneous spikes in viewership or tailoring them to specific content. .
The meaning of “advertising on television” has changed. Traditional linear formats don't offer the convenience viewers desire and don't offer advertisers as many options or promises of return. Television advertising is not in danger, and certainly not extinct, but it is evolving. By providing more choice with a data-driven approach to streaming, advertisers and buyers can reap more from the latest advances in television.
