TV Advertising Proves Effective for First-Time Advertisers: Insights from Recent Research

TV Advertising Proves Effective for First-Time Advertisers: Insights from Recent Research

In a world where people are glued to their screens, the bustling city of New York is witnessing an intriguing trend—despite a fragmented viewership landscape, TV advertising is making a remarkable comeback. A recent study shows that first-time advertisers, those who have dipped their toes into the TV ad waters since 2021, are seeing significant benefits. To put things in perspective, over $4 billion has been invested by 931 first-time advertisers in just a few years.

A New Dawn for Advertisers

The research conducted by the Video Advertising Bureau (VAB) sheds light on how pioneering brands are using television as a powerful medium to boost their online visibility. Sean Cunningham, the president and CEO at VAB, explained this phenomenon perfectly: “It’s irrefutable hard data that multi-screen TV works like a light switch with respect to building customer traffic.” This catchy metaphor highlights how TV ads can instantly illuminate a brand’s presence online.

How the Study Unfolded

The report titled “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers” analyzed 201 first-time TV advertisers. It pulled data from Comscore, focusing on website traffic from April 2020 to April 2024. Among these brands, 173 measured their website traffic before launching their TV ads, while 28 jumped in without prior measurements.

Quantifying the Impact

Those who measured their website traffic experienced an impressive 12% boost during the month their TV commercials aired, compared to their online traffic before. Even better, this surge wasn’t just a fleeting moment—it led to an overall increase of 20% in unique monthly visitors in the following months.

Let’s break it down further. For example, brands that invested $500,000 or less observed an average 8% rise in unique monthly users during their launch month, and then a consistent uptick of 20% over the subsequent months. On the other hand, brands spending between $2 million and $5 million saw a respectable 9% increase at launch, followed by a 25% growth afterward. For those willing to splash out $10 million or more, the rewards were staggering—a whopping 36% rise in their launch month and a 42% growth over the campaign duration!

Connection to Direct-to-Consumer Brands

Interestingly, company type played a part in how well brands performed online. Direct-to-consumer (DTC) brands absolutely shined in this study. While on air, these brands experienced an increase of around 622,000 unique users on average, nearly twice the overall average of 387,000 unique visitors.

Significant Trends in Advertisement Spending

As the research unfolds, it shows that brands are becoming more willing to invest in TV over time. First-time advertisers in 2021 increased their investments by a striking 70% after their initial airing. The following years saw a decrease, but still notable—54% in 2022 and 37% in 2023.

Measuring Success in Advertising

A crucial takeaway from this study is the importance of measuring website traffic relating to TV advertising. Such data can provide insightful perspectives on how effectively a campaign boosts mid-funnel results, including consumer consideration and sales. Cunningham emphasized this concept, stating, “These are specific customer actions that had to be performed.”

The Road Ahead

As advertising continues to evolve, the trends we’re witnessing—like the rise of retail media and ad-supported TV—suggest a promising landscape ahead. Nevertheless, as experimentation in various sectors like AI increases, marketers must keep pace with these shifts. As competition changes, brands with well-structured data management will likely hold the edge in a crowded marketplace.

So, as the lights continue to shine on the television screens, it’s clear that for first-time advertisers, taking the leap with TV ads could be a game-changer in their marketing journey!