It’s not what you view, but how you view it!

When I started writing this blog I researched the topic and found a number of interesting statistics. It’s not a form of media that my colleagues come up against very often, other than the facts and figures I didn’t know an awful lot about it. By chance (thanks to LinkedIn) I came across a man that does know about the industry, so we met up for a coffee and he was kind enough to let me pick his brain. So I would like to thank Jason Gill from Peter Gill and Associates for educating me on TV advertising.

Of all the media available in the market, TV is more often than not the most expensive platform to advertise on. There are two main expenses when it comes to running TV campaigns, airtime and creating the advert. Due to the costs involved it is often perceived to be exclusively for larger brands. However, this is no longer the case…..

Not so long ago a huge production crew was required to create the advert, it was the number of crew members that made it expensive. Developments in technology have changed (for the better) how visual adverts are created and recorded. Now you don’t need as many people to make the adverts, which have reduced the production costs. Jason mentioned he was recently involved in creating an advert that only cost a few hundred pounds, so spending thousands of pounds on an advert isn’t always necessary.

The cost involved when buying TV airtime will vary depending on what you require (it’s no different from any other media in that respect). Things that affect the price are, seasonality, the duration of the advert, the time of day it is aired and the channel that you want to advertise on.

Here are a few reasons why advertisers use TV.

  • In 2011 the average individual daily hours of TV viewing were 4 hours 3 mins (9 minute increase from 2002) (this equalled the record set in 2010)
  • The average weekly reach (based on at least 3 mins consecutive viewing) was 94.8%
  • 40% of primetime tweets are about TV
  • Total TV revenue (linear and sponsorship) reached a new record high in 2011

When it comes to advertising revenue market share, TV really blows every other media out the water. According to Nielsen, in 2011 TV accounted for 38% of all advertising revenue throughout the UK.

The advancement in technology has changed how consumers interact with adverts, running a successful television campaign now requires more than an engaging, emotional or educational visual content.  Joint research from Thinkbox (TV marketing body) and the IAB shows that as a result of seeing an ad:

  • 57% of people agreed that they have conducted online research.
  • 36% had visited a brands website to find out more.
  • 28% had searched the web to find out where to buy the brand.
  • 21% had purchased online.

The increase in broadband, laptop and smart phone ownership has essentially brought the high-street into the living room and TV is the point of sale medium.

A TV campaign is no longer restricted to only airing the advert on TV, now you can up-weight the campaign to include mobile marketing and an online presence with the broadcaster. Did you know that 57% of TV viewers view the web simultaneously? Companies aren’t limited to only using broadcasters other services. Now they can run online campaigns in conjunction with their TV commercials, mainly through social media sites such as YouTube, Facebook and Twitter. It’s all about engaging with the audience and building the company or brands profile. One brand to do this incredibly well was Old Spice; do you remember the hunk on the horse?

This advert was fantastic for a few reasons; Old Spice had managed to create an advert that was not associated with the perceived ‘granddad’ Old Spice customers. They went on to create one of the most memorable social media campaigns, a two day marathon of personalised video responses to questions asked by fans on Twitter and YouTube. I found a few statistics for the social media campaign:

  • 80,000 Twitter followers in 2 days
  • Facebook interaction increased 800% with personalised videos
  • Sales figures increased by 107%

I can’t really write about TV advertising without mentioning ad-avoidance. I’m sure at some point we have all fast-forwarded through adverts. According to Thinkbox, 2.5 billion ads are seen every day. As long as we have seen the advert once, 65% of us would be able to recall the advert as if it had been played at the normal speed. Thinkbox also say that “Of all the TV watched in the UK, 93% is viewed live, so only 7% of ads are even capable of being skipped. In fact we are watching more TV ads at normal speed than ever, 41% higher than in 1999.”In fact, Digital Television Recorders (DTR’s) are allowing consumers to rewind their favourite adverts and watch them again. (Note: Thinkbox’s figures are in relation to the % of adverts skipped, not avoided. According to the Radio Advertising Bureau, 44% of TV adverts are avoided).

In summary, consumers are watching more TV than ever before. It’s no longer solely about the content or idea behind the advert but also how they interact with you online. If you still think TV advertising doesn’t work or is no longer successful then I’ll leave you with this: TV’s profit return on investment has increased by 22% in the last 5 years.

The Nuggets – I was challenged by Jason to find this information!

  • 97% (25.2m) of UK households are digital
  • 10.853m have Freeview
  • 10.253m have Sky
  • 3.763m have Virgin
  • 1.4m have Freesat
  • 575,000 have BT Vision
  • 460,000 have analogue

(Source: BARB and BT Vision, Sky and Virgin)

Please leave a comment below, email me at the station or tweet me @realradiojodi

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