How Effective is TV Advertisement?

Television advertising has been a fundamental marketing channel for decades. The first TV commercial aired on July 1, 1941 and since then, companies have relied on TV commercials to build household brands.

However, when you compare TV ads to other performance marketing channels (like Google Ads, Meta Ads) where you can get a direct Return on Ad Spend (ROAS), TV advertisements seem so wasteful. Because many of the people watching your ads on TV probably don’t need your product or service. Also, consumer behavior has changed; People spend more time on social media and other platforms. So it’s no surprise that the effectiveness of traditional TV advertising is being questioned.

However, there is a new way of TV advertisement called CTV (Connected TV) that is about 700% more efficient based on our experience running CTV Ads for our clients. Additionally, based on our tests, the best approach is to first invest in your paid social and paid search platforms and then start running your winning ads on CTV, because it’ll have a halo effect on your other marketing channels. We will discuss this strategy in detail in this article.

Why Do Businesses Still Invest in TV Advertising?

The truth is, we are seeing a big shift in consumer behavior, but it’s also true that there are many companies that spend millions of dollars on TV Advertising.
So you may ask: what are the benefits of TV Advertisement?

Still the Main broadcasting channel for Live Sports

Linear TV is still the main channel for broadcasting live sports games and major events. Millions of viewers tune in to watch their favorite games and teams in real-time. This is a golden opportunity for advertisers to reach a large, engaged audience.

News and Breaking News Coverage

Many people still rely on TV for news updates, especially breaking news stories. News channels attract viewers who want to stay informed about current events. For advertisers, this means access to a demographic that values timely and reliable information.

TV Ads are Perceived as More Trustworthy

Ads that appear on TV are often perceived as more trustworthy because of the high standards and regulations governing broadcast content. This credibility can enhance the perceived legitimacy of a brand or product.

Exclusive Broadcasting Rights on Cultural Events and Specials

TV also broadcasts major cultural events like award shows, holiday specials, and parades. These are the kinds of programs that draw people in because they want to be part of shared national or cultural experiences.

Shared Experiences and Bringing Families Together

You know, television still plays a big role in bringing families together. It offers shows that are suitable for everyone. Families sit down to watch their favorite programs, creating bonding moments and traditions that last for years.

According to eMarketer report, These are Actions Taken by US TV Viewers After Being Inspired by Something They Saw on TV:

TV Advertising Case Study: Clarityn

Clarityn is a well known allergy brand in the world, but in the United Kingdom, it struggled to compete with other allergy brands with larger marketing budgets and ad spends.

Campaign Goal

Increase retail sales by 33%

Challenge

Because Clarityn is an allergy and hay fever medication, knowing that almost half of the population suffers from hay fever symptoms each summer, It was clear that they needed to start positioning Clarityn before the summer season. This way, when people wanted to purchase an allergy relief medication, they would already be aware of the Clarityn brand.

Plan

Leverage Linear TV and BVOD (Broadcast Video on Demand) to increase the brand share of voice, enabling them to capture early sufferers at the start of the hay fever season.

They’ve also leveraged YouTube Ads, Paid Social and Digital Audio as support channels to help with brand share of voice.

Results

This campaign resulted in a 44% increase in retail sales for the brand.

Across all channels, the campaign reached 75% of the target audience with TV and BVOD reaching a whopping 55%.

Across the key trading period of April and May, Clarityn hit 32% share of voice, the highest in the category against the campaigns target market.

If you’re reading this article, chances are you’re considering TV advertising as your new marketing channel. However, you may have doubts about the effectiveness of this channel. But the truth is, TV advertising is still effective; the better question is whether it’s a good fit for you.

Who is Linear TV Advertising For?

Television advertising remains a crucial part of many businesses’ marketing strategies. However, who exactly benefits from spending money on TV ads? The following is our analysis on types of businesses and situations where TV advertising works:

Please note that we’re only referring to traditional TV advertising, not Connected TV.

1. Large Brands and Established Companies

Big brands with large marketing budgets often use TV advertising to maintain their market presence. These companies use TV ads to keep brand awareness high, introduce new products and strengthen brand image. Although the costs can be steep, the long term return on investment can be significant.

2. Consumer Goods Companies

Companies that make everyday consumer goods (like food, drinks, household products, and personal care items) find that TV advertising is really effective. This is mainly because of a few reasons: first, it has a wide reach, ensuring broad exposure to many viewers. Second, there’s frequent exposure, which helps keep the brand in people’s minds. However, the most important factor is the emotional connection and trust that it creates with consumers. Although some might argue that other forms of advertising are better, TV still holds a strong place in the FMCG industry worldwide.

3. Automotive Industry

Automobile makers often rely on TV advertising to highlight their newest models, features and innovations. They also target specific demographics, such as sports channels for performance cars or lifestyle programs for family vehicles. high-production-value commercials can really boost the perceived quality and reputation of a brand.

4. Entertainment and Media Companies

Television advertising is a natural fit for promoting movies, TV shows, streaming services, concerts, and other entertainment offerings because most viewers are already there for entertainment.

5. Local Businesses and Services

Local businesses, including restaurants, retail stores, and service providers, use TV advertising to attract nearby customers. TV ads help by:

• Geographical Targeting.
• Building Local Brand Presence
• Promoting Special Offers.

6. Non-Profit Organizations and Public Services

Non-profits and government agencies utilize TV advertising to raise awareness, promote causes, and encourage public participation. This includes:

• Awareness Campaigns.
• Fundraising Efforts.
• Public Service Announcements (PSAs)

7. B2B (Business-to-Business) Companies

While traditionally more reliant on digital and direct marketing, some B2B companies find value in TV advertising to:

• Enhance Brand Credibility: High-quality TV ads can position a B2B company as a leader in its industry.
• Reach Decision-Makers: Advertising on industry-specific channels or during business news programs can target key decision-makers effectively.
• Support Comprehensive Marketing Strategies: TV ads complement other marketing efforts, reinforcing messages delivered through digital and print channels.

Who is TV Advertising Not For?

While TV advertising offers numerous benefits, it’s not the ideal choice for every business or situation. Here are scenarios and business types where TV advertising may not be the most effective or efficient strategy:

• Small Businesses with Limited Budgets

• Highly Niche or Specialized Markets

• Businesses Relying on Immediate Sales or Conversions

• Businesses Seeking High Interactivity and Engagement

Limitations of Traditional TV Advertising

Traditional TV ads have the advantage of reaching a large audience. Major events like the Super Bowl show how TV can capture the attention of millions. However, this broad reach comes with limitations:

Lack of Targeting: Yes, you can show your ads on TV based on time, genre, and geographic targeting, but all of this is pretty general compared to modern digital marketing channels.

Measurement Challenges: This one reminds me of that famous saying that says “I Know I’m losing half of my money in marketing, but I don’t know which half.” Obviously, this would drive performance marketers working with smaller budgets crazy if they know there is a hole in their marketing funnel that they can’t fix.

High Costs: Producing and airing TV commercials can be expensive, making it less accessible for smaller businesses.

No Retargeting options: If you’re a performance marketer, you know the power of retargeting and you’ve seen a lot of sales happening in retargeting the people who showed some kind of interest or intent with their engagements. However, we can’t track and retarget people on linear TV which is a huge con.

But what if I told you there is a new form of TV Advertisement solution?

Connected TV (CTV): The Future of TV Advertising

So, What is CTV?

When we talk about Connected TV (CTV) we’re referring to devices that can stream digital content over the internet, including smart TVs, gaming consoles, and streaming devices like Roku or Amazon Fire Stick. CTV combines the reach of traditional TV with the tracking and targeting options of digital marketing.

Watch 10 CTV advertising examples

What are the Advantages of CTV?

• Advanced Targeting: CTV platforms can analyze user behavior to deliver ads to high-intent audiences.
• Measurable Results: Advertisers can track impressions, engagement, and conversions in real-time.
• Creative A/B Test: CTV platforms allow advertisers to perform creative A/B testing with ease. By experimenting with different ad variations—such as altering visuals, messaging, or calls-to-action—businesses can identify which elements resonate most with their audience. This iterative testing leads to more engaging ads and higher conversion rates.
• Lower Barrier to Entry: Unlike traditional TV advertising, which often demands substantial budgets and long-term commitments, CTV offers a more accessible entry point for businesses. Flexible pricing models and scalable budgeting options mean that companies of all sizes can tap into the vast audiences that TV offers without breaking the bank.
• Retargeting Options: CTV leverages advanced data analytics to offer robust retargeting capabilities. Advertisers can reconnect with viewers who have previously interacted with their brand—whether they’ve visited a website, used an app, or watched earlier content. This targeted approach enhances ad relevance and increases the likelihood of conversion by keeping your brand top-of-mind for interested consumers.
• Niche Market Targeting: Unlike linear TV advertising, you can use CTV for most niche market products or services.

Traditional TV Ads vs. CTV Ads

Although traditional TV ads offer broad reach, they fall short in efficiency and targeting. They broadcast messages to a wide audience: many of whom may never become customers. In contrast, CTV ads leverage data analytics to target viewers who are more likely to be interested in your products or services. This means fewer wasted impressions and a higher return on investment (ROI). Because of this, businesses find CTV ads to be a more effective choice.

CTV Advertising Case Study: Groomie Club

Groomie specializes in quality head shaving products for men, which is a very specific niche market within the beauty and grooming industry.

Campaign Goal

Expand customer base and grow sales.

Challenge

The first challenge was that their target audience was only men over 30 years old who were experiencing hair loss. As you can see, this is a very specific target audience which you’re unable to target with linear TV advertising methods.

Plan

Use the new CTV targeting tools to only reach their specific audience and rapidly test which creatives work, resulting in higher ROAS.

Results

Despite Groomie Club’s niche market challenges, they ran a successful campaign with a 230% Return on Ad Spend (ROAS).

TV Platforms

Connected TV (CTV) platforms like MNTN Match and iSpot TV, along with other options such as Roku Advertising, Amazon Fire TV Ads, and Hulu Ads, have great tools and features that can significantly enhance your advertising strategy.

But based on our experience, not all CTV solutions are created equal. We use MNTN Match for most of our ads because it has been giving us the best results so far.

Common Challenges

If you’re trying to run CTV advertising for the first time, it’s important to understand storytelling and how to create a TV worthy commercial that communicates your message in under 10-30 seconds.

Secondly, if you have a media buying mindset, you know that you need more than one commercial so you can A/B test different creatives and optimize for each target audience on each platform.

Usually in-house teams are good at storytelling and producing TV commercials, but have no experience in running and optimizing CTV advertising platforms or it’s the other way around. It’ll be very costly If your in-house team wants to do it all by themselves, especially if they have never done this before. We believe marketing agencies with expertise in both areas can give you the best result because they have a deep understanding of both worlds.

If you’re looking for a marketing agency with award-winning storytellers and experienced media-buying specialists, contact us today to explore how we can bring your brand story to life.

At the End …

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