What are the benefits of advertising on cable television?

The importance of TV advertising is that even in the age of YouTube and corporate Facebook pages, nothing packs the punch of a TV commercial. Despite the competition from streaming services, an ad on a popular show can present your message to millions of viewers. The advantages of TV advertising don't come cheap, however.

The Benefits of TV Advertising

The advantages of TV advertising aren't just that TV can deliver a massive audience. It also introduces your pitch to customers at a time they're enjoying themselves and paying attention to the screen. That contrasts TV with radio advertising, where their attention is probably focused on driving.

Television ads can do more than print, digital or billboard messages. They combine visual and sound and include movement instead of static images. The same is true of online advertising, but it doesn't yet have the marketing impact of TV commercials.

Cable TV specialty channels also make it easier to target a particular demographic than it used to be. A publisher promoting a new history book might find a better response advertising on the History Channel than ESPN, for example. The ability to target audiences adds to the importance of TV advertising.

The Price of Commercials

Despite the benefits of TV advertising, it does have a downside. The big negative is the impact a TV commercial will have on your bottom line as buying airtime is expensive. Making a good commercial is pricey too: There's writing, acting and camera work to pay for.

There are ways to reduce the cost, however. Making a 15-second commercial is cheaper than the conventional 30-second length. Putting your money into less popular shows or local syndicated programming with the right viewer demographic can be more cost-effective for small businesses than targeting airtime on the biggest hits.

Another drawback to TV is that no matter how popular the show, viewers aren't a captive audience. They may get up and run to the kitchen or bathroom during commercial breaks. If they DVR the show, they may fast forward through commercials. That can cost you a chunk of the audience you're paying for.

Planning Your Advertising

To gain the benefits of TV advertising and avoid the drawbacks, you have to plan your strategy carefully.

• Target the right audience. Is your dream customer a widowed senior, a millennial STEM nerd or a sports fanatic? Cable and broadcast TV have more than enough demographic data to help you pick the right show to connect with your targets.
• Shop around. If there are multiple local stations, ad agencies or cable operators, get quotes from more than one. Look for more than money: Some stations will co-produce your commercials for free if you commit to a big enough ad buy.
• Start slow. You only have a limited budget, so don't try airing multiple commercials right away. That can actually confuse people about your brand and message.
• Settle on the message you want to send. Are you competing on quality? Undercutting the competition's prices? Do you just want to build brand recognition? Your commercials need to be in sync with your goals.
• Determine a budget. Ad agencies and TV stations may push you to exceed it, but that's usually a mistake.
• Watch commercials from your competition. See what they say about themselves and what they want customers to know. You can either follow that model or go in a different direction, but it's good to know what you're up against. 
• Monitor your results. If the commercials don't generate more profits for you, identify the problem and start over.

Diversify Your Strategy

Despite the importance of TV advertising, you can save money by spending some of your advertising budget elsewhere: social media, online ads, radio or print. Even if your primary focus is TV, a digital ad presence, for instance, can complement television's impact and boost sales further.

TV advertising is taking on characteristics of digital marketing to deliver targeted ads with strong emotional cues.

TV advertising is a powerful weapon to have in your marketing arsenal. Many have been predicting the decline of TV advertising for years. But research shows it’s still thriving and even evolving in-line with the explosion in digital marketing. According to research by Thinkbox, 82% of video ads in the UK are viewed through live TV.

TV advertising casts a wide net that reaches millions of people. TV ads also have the power to drill down into specific market segments. What’s more, media and marketing software is now capable of integrating TV ads’ results with digital marketing data so you can accurately measure and optimize your campaigns.

Read on to discover the types of TV advertising, their advantages, costs, and how to accurately measure results.

What are the types of TV advertising?

We all know what a TV ad looks and sounds like, but what are the different kinds that marketers and advertisers can use to their advantage? The two types of TV advertising (excluding Internet and streaming services) are broadcast and satellite/ cable, and there’s a key difference between them you need to know.

Broadcast TV is free in most countries and it includes all the best-known local and national channels. Since broadcast TV is free and nationwide, your ads can potentially reach millions of viewers. However, they’re less targeted. If your goal is building brand awareness, broadcast is a good fit.

Cable/ satellite TV is a paid service. Its specific channels attract audiences you can carefully target. That said, its reach is limited. If you want to reach a specific demographic or you’re working with budget restrictions, a cable or satellite ad that specifically promotes your business within your local region, for example is probably your best choice.

TV advertising cost

TV advertising costs are based on several factors—such as TV spot, channel, and length—and these factors make the final bill vary considerably. A 30-second spot in this year’s Super Bowl will work wonders for your brand prestige with 100 million people viewing your ad, but it comes with a hefty price tag of $5.6m. At the other end of the spectrum, TV advertising rates on local and satellite channels can start as low as $5 to $20. Your audience will be vastly reduced, but potentially far more targeted.

Then there’s the production cost to throw in on top. The average TV advertising production cost sits between $1,500 to $20,000, although premium ads can cost upwards of $150,000. Some TV stations may even agree to produce your ad at no extra charge if you purchase a certain number of spots.

Advantages of TV advertising

A carefully designed and well-placed TV ad can generate positive engagement among viewers and greatly improve market awareness. Below are the main advantages of TV advertising.

Multi-sensory media: TV ads capture people’s attention with a powerful combination of sound and visual cues. Modern home entertainment systems that incorporate surround sound and a curved 4K screen give you the opportunity to connect with viewers through a highly engaging medium in their home.

Reach: Although TV reaches the majority of people, it’s not necessarily a good use of your budget to aim your message at every man, woman, and child. A great advantage of TV advertising is you can carefully select market segments by age, nationality, gender, and even personal interests by choosing the exact channels and spots where you want your ad to air.

The ad: TV advertising is an art and your creativity determines the success of your ad’s message. Apple’s now-famous 1984 ad used parallels with George Orwell’s classic dystopian novel to promote their original Macintosh computer. Customer numbers surged in stores the day after it aired and in the three months following consumers purchased $155m. of Apple products. The marketing team initially dismissed the ad thinking it would be ineffective, which suggests it’s often well worth taking that extra creative leap. Not to mention, the ad aired just once during the Super Bowl; now that’s ROI!

Disadvantages of TV advertising

Naturally there are a few drawbacks to TV advertising, the most common being budget constraints during production and campaigns. Most importantly, TV advertising is only as effective as the ad itself, so it is well worth doing your market research and getting creative to develop an ad that truly resonates with your target audience.

Viewer attention: it’s unavoidable that viewers lose interest and turn to their smartphone or change channel. There’s a lot to compete against nowadays and this is why it is absolutely vital to get your core message across as simply and quickly as possible. On top of that, your core message must be carefully thought out and refined to have the best chances of success.

Ineffective targeting: many TV ads are inefficient at engaging their intended audience or they fail to reach a defined number of viewers. Market research and media planning are essential to make sure your TV ad is tuned into your audience’s concerns and needs.

How to measure TV advertising results

Measuring the effectiveness of your TV ads is complex. Like other marketing channels, TV advertising is a slow burn that focuses on long-term gains. That said, measuring short-term results—such as reach and ratings—and viewing them in-line with your overall marketing strategy can provide valuable insights including budget allocation and where to optimize your campaigns.

The main ways to measure TV ads are:

Reach: this is the number of viewers watching TV. It can be broken down into demographics, gender, age, income, and even TV set top device for detailed viewer information.

Gross rating points (or target rating points): this is the reach combined with the frequency a viewer sees an ad. One rating point is one percent of the potential audience, meaning if a TV ad has a 30 percent reach and shows four times, the ad has 120 gross rating points.

Effective points: this tracks the percentage of the possible audience that views your ad and how often. This is useful to judge the exposure quality, for example, an ad viewed only once may not be effective and an ad viewed too many times will diminish its message.

Media planning software measures your TV advertising results

Using a media planning tool like Mediatool enables you to analyze your TV ads and weigh them against your other marketing activities. Once you’ve inputted your data, the data gets tagged and connected to your campaign so you can monitor in real time how your TV ads are impacting your other activities such as social media engagement, website traffic, and budget allocation.

Take a look at Mediatool’s extensive features including budget planning, customizable KPIs, and real time campaign monitoring to see how launching and tracking your next campaign can be so effective and efficient that your team will save hundreds of hours.

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