TV Advertising Still Packs a Punch for First-Time Advertisers

TV Advertising Still Packs a Punch for First-Time Advertisers

In New York City, many brands are discovering that television advertising is still a powerful way to make an impression and drive traffic to their websites. Despite a constantly changing landscape of viewer preferences and increasing concerns over how to measure success, a recent study by the Video Advertising Bureau (VAB) reveals some surprising good news, especially for first-time advertisers.

The Power of TV Advertising

Since 2021, over $4 billion has been spent by 931 brands taking their first leap into TV advertising. That’s a staggering commitment, and what’s even more interesting is how it’s paying off. The VAB found that TV can significantly boost web traffic, especially for companies dipping their toes into this channel for the first time. According to Sean Cunningham, president and CEO of VAB, “It’s irrefutable hard data that multi-screen TV works like a light switch with respect to building customer traffic.”

Breaking Down the Research

The report titled “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers” focused on 201 brands using website traffic data from Comscore over a four-year period. Among these, 173 brands tracked their website traffic before launching their ads, and the results were notable.

On average, brands that measured their web traffic saw a 12% increase in traffic during their TV debut month compared to the previous six months. But it didn’t stop there; the positive effects continued, with a remarkable 20% increase in monthly unique visitors when looking at data over multiple months following the campaign launch.

Investment Matters

The report also highlighted how investment amounts affected traffic. For example, brands that spent $500,000 or less experienced an average 8% increase in unique monthly users during their launch, with a sustained 20% increase in subsequent months. In stark contrast, brands splashing out $10 million or more saw an impressive 36% increase in their launch month, with a jaw-dropping 42% increase in unique monthly visitors over the course of their campaign.

Direct-to-Consumer Brands Shine Bright

If you’re wondering which types of businesses are cashing in on these TV advertising benefits, direct-to-consumer (DTC) brands are leading the charge. They enjoyed an average monthly increase of 622,000 unique users while on TV, nearly double the overall average of 387,000 unique viewer increases reported by all advertisers.

A Steady Growth Pattern

The trend for first-time advertisers is very promising. After their initial campaigns, brands increased their investments significantly—by 70% in the months following their TV debut in 2021, though this growth saw a decrease in the following years with increases of 54% in 2022 and 37% in 2023.

Measuring Success

One big takeaway from this study is the importance of measuring website traffic in connection with TV advertising. Such metrics provide brands with valuable insights on how effective their campaigns are at driving customer interest and encouraging actions like consideration and sales. Cunningham emphasizes, “This is hard data around web visits and Google search. These are specific customer actions that had to be performed.”

Looking Ahead

As brands navigate the complexities and challenges of advertising in the age of fragmentation, these findings serve as a beacon of hope. While the industry continues to evolve, understanding and leveraging the power of television remains a smart strategy for generating interest and converting viewers into loyal customers.

As we look to the future, businesses willing to embrace and adapt to these trends may just find their golden ticket in the world of TV advertising!