It is very important for marketers not to underestimate television as a media channel on the one hand and not to be afraid of it on the other. The cost of advertising on TV depends on a wide range of factors and it is not always necessary to spend exorbitant sums.
Best Return on Investment
TV has the best ROI/sales ratio of all channels. The findings of mediametrie.fr’s research show that TV contributes 40% of sales increase globally (while only having a 31% share of investment). According to the research, TV has a better ratio between global ROI and global contribution to incremental sales than any other channel, including search, social, outdoor advertising, and radio.
Television Advertising Has the Hallmark of Luxury for Viewers
One of the undeniable advantages of television is that viewers perceive the advertised products as something special and of high quality. The roots of this viewer impression lie in the idea that only very wealthy companies with the funds to invest in such campaigns can afford to advertise on TV. This impression is underlined by the fact that TV advertising presents products in top quality, through professionally produced spots using highly attractive visual elements. This further emphasises the sense of prestige and exclusivity and gives the products an air of quality and exceptionality.
Advertising on TV Is Not Expensive
Unfortunately, like viewers, marketers often perceive TV advertising as a luxury and overly expensive form of promotion that is reserved only for large corporations with unlimited budgets. Fortunately, the reality is quite different. The assumption that TV advertising is expensive is a myth not taking into account that this form of promotion has the highest return on investment. In fact, television has a wide reach and is still one of the most popular ways to connect with consumers. An advertising spot can reach millions of viewers in a single broadcast block!
TV Advertising Costs
In fact, reaching your target audience through TV advertising can be cheaper than other media channels. Costs depend on a wide range of factors. When planning a TV advertising budget, several things need to be taken into account: the cost of producing the ad spot, the desired broadcast station, its viewership and popularity, seasonality, time slot, regional factors, exclusivity, the moment of advertising time purchase and also the length of the ad spot. The combination of all these factors has an impact on the final price of TV advertising. And as even small and initially lesser-known brands prove, investing in TV advertising pays off handsomely in the end.
Olio’s Story
An excellent example of the growth that television has contributed to is the story of Olio. The company approached Hell Yeah in late 2021 to promote the use of the free OLIO app to help tackle food waste by allowing surplus food to be shared between neighbours and local businesses instead of being thrown away. The campaign aimed to raise brand awareness, encourage behavioural change and attitudes towards household waste, increase the use of the app and ultimately reduce over-consumption and food waste and reduce the amount of waste going to landfill.
Hell Yeah understood that emotion is the key to success, so they chose television as their main medium as it has the ability to evoke emotion and influence behavioural change. The TV spot featured a group of British children singing Louis Armstrong’s What a Wonderful World at a landfill site in Wales. The harsh reality, simple creative and eerie juxtaposition made clear the campaign’s main message: if we don’t start sharing more, our children will pay the price:
Video: Olio – Share More, Waste Less
The result of the TV campaign was stunning:
- 39% increase in ‘first’ OLIO listings,
- 25% uplift in web and app visits,
- 23% increase in sign-ups,
- 28% increase in the number of listings,
- 35,000 people signed up to OLIO,
- +35% brand awareness,
- 50% of ad recognisers said it made them consider how to reduce their food/household waste,
- Interest in using sharing apps almost doubled from 12% to 22%.
You can see how the campaign was created here.
Even Small Companies Can Afford TV Advertising
A small business with a limited budget that wishes to incorporate TV advertising into its media plan has several options for using TV advertising:
- Choosing less expensive broadcast times: instead of broadcasting during prime time, which is usually the most expensive, alternative times such as morning or night hours can be considered. These times may be more affordable and still reach the target audience.
- Targeting local stations: advertising time on local TV stations is usually cheaper than on major national networks. Targeting local audiences can be very effective for local businesses and can also save costs.
- Shorter ad spots: instead of longer ad spots, you can consider creating shorter ads, which can contribute to lower production costs and allow you to invest the savings in buying more ad time for the same budget.
- Negotiating price: many TV stations are open to negotiating the price of advertising time. It is worth trying to negotiate a better price or deals with TV stations that fit your company’s budget.
- Creative ideas count: A strong creative concept often offers an easier and cheaper path to implementation than its weaker alternative. Creative agencies will pursue it with great interest, directors will vie for the opportunity to develop it, and production companies will want to invest in it because they see its potential as an opportunity for their own visibility. And TV audiences will love it, talk about it and share it with friends and family, so it will take on a life of its own and the company will achieve a higher return.
- Content reuse: You can also consider reusing or adapting content that the advertiser already owns, or creatively using footage from the library. Generally, advertisers and agencies tire of creative quite a while before viewers get tired of the ad, so this may be the most cost-effective approach.
- Use of animation: depending on the style of animation, considerable savings can be achieved compared to the same scenario created using live action. Library footage used in a creative way can also help reduce production costs.
- The use of artificial intelligence: New technologies such as artificial intelligence are making it easier and less expensive than ever to produce quality content.
But AI is not just for small businesses looking to save money. Even famous brands are using it for their advertising. Coca-Cola is one of them, looking to combine AI with human creativity to improve its brand identity:
Video: Coca-Cola® Masterpiece
The fact is that even with a limited budget, TV advertising can be an effective tool for promoting brands, products and services if it is properly targeted and optimised for the target market. When we consider all the strengths of television, such as its high effectiveness, unrivalled level of attention, high level of trust, long-term impact and semblance of prestige, it is clear that the cost of television advertising is certainly not high and television continues to hold its unique position as a medium for presenting compelling advertising messages to a mass audience.
The Next Myth: Nobody Watches TV
In the next article, we will look at what is really going on with TV ratings. The figures speak for themselves.
Sources: thinkbox.tv, revpanda.com, linkedin.com, v-net.tv
