We all know that TV is important to marketing. It has been an advertising staple for as long as anyone can remember and we can often forget just how powerful a medium it is. Most companies want their messages to be on TV because it is arguably the best medium available for connecting with an audience. It has the capability to utilise images, moving scenes, sound, music and text all at once. For advertisers, it is a blank canvas with every colour available on the palette.
However, with the current rise of digital TV and online entertainment mediums such as YouTube, the question must be asked…is TV still number one?
Our aim is to try to simplify the complicated world of television advertising into a more digestible format, in order to help you discern whether TV is right for your next campaign.
So…is TV still relevant?
The short answer is, yes.
According to ThinkTV.com, 13.5 million Australians tune into commercial free-to-air television on average every day and there is a television in virtually every Australian home (99.7%). On average, every Australian spends over 3 hours a day watching television – the majority of this time is spent watching Free TV.
The market of internet-based services and smart TV’s is still well below 50%, but in between 2014-2020, digital technologies will continue increasing its market share of the entertainment and media industries as the national broadband network increases its spread across Australia (Buddle.com).
So whether or not TV will stay on top is still undecided, but at for the moment it is still a very viable medium for generating sales.
Aside from TV’s massive audience, it has the potential for creating very powerful impressions on people. If a picture is worth a thousand words, then TV is an encyclopaedia of opportunities for engaging with the target audience.
This is partly due to the fact that TV has the ability to utilise all forms of artistic expression. Music, moving images and speech can all be used in conjunction with one another to convey a message or idea. Some of the greatest TV commercials are essentially short films meant to entertain and sell at the same time. This is why there are people who still remember great TV commercials years after they have been off the air. TV simply reaches a level of engagement that other mediums such as radio or print normally cannot (although, this often comes at a higher cost financially).
In addition to this, TV facilitates targeted marketing extremely well. This is because of the very well defined ‘demographic partitions’ present in the scheduling system of TV (e.g. midday Talk Shows are great for targeting women). Finding the right audience is easier and more effective on TV because advertisers simply need to find the ‘right’ show.
Some interesting facts about TV advertising according to the PWC Payback Study:
- TV paid back an average 4.55 times in increased sales – 30% more than press.
- TV delivers almost the same value (80%) to the brands in the year following any investment as in the year of investment itself.
- TV is the most effective generator of brand value and what distinguished the brand value leaders in every market studied was a dominant TV share of voice.
- If brands cut their TV advertising budget there is a 73% chance of damaging brand value; but increase investment in TV and there is a 67% chance of increasing brand value.
It seems obvious that advertising on TV is the best way to go about generating awareness and sales. Almost all business owners have at least considered advertising on TV at some point in their lives. However, TV advertising comes at a large cost and is not necessarily always the best way to ensure business growth. It is a good idea for business owners to assess other areas of their in internal practices before considering TV as an option. This will help them cope with new business if they choose to advertise, or identify problems that advertising on TV would not have fixed in the first place.
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