Research Shows TV Advertising is Still King within a Growing Kingdom
Every year, it seems we keep hearing the same ol’ story.
“TV is the old way to advertise!”
“If you don’t increase your spend on digital advertising, you’re missing out!”
As the saying goes: Don’t believe the hype.
In a study published by Neustar commissioned by Turner and Horizon Media, TV remains the most effective way to advertise. The research, which extensively examines the effect of advertising across the major marketing channels, showed that dollar for dollar, TV provides the most scale and delivers the highest return on ad spend from both a sales and awareness perspective.
“This research reaffirms that television continues to be the biggest driver of marketing success today, yet there remains a lot of room to grow even further as the industry and consumer habits shift,” said Beth Rockwood, VP, Portfolio Research and Chief of Staff, Turner. “Recognizing that growth opportunity, Turner has been one of the industry’s biggest proponents for reimagining the experience of television – developing new audience targeting methods, as well as forging innovative content partnerships, to deliver highly engaging, unexpected experiences to fans.”
The insights were derived from Neustar’s advanced analytics software, which ran thousands of models spanning key advertising categories — automotive, financial services, CPG, retail, telecom, theatrical movies, QSR and consumer electronics — and used seven years’ worth of data. Ultimately, the research found that for a $1 million investment, television’s lift is consistently 7 times better than paid search and 5 times better than online display advertising.
“TV advertising is undergoing an incredible data-driven renaissance. It’s fusing the best of digital’s targeting and measurement with the best of TV’s premium content and reach,” said Steven Wolfe Pereira, Chief Marketing and Communications Officer, Neustar. “Unlike any other media channel, nothing beats the sight, sound and motion experience of TV. Its ability to truly capture attention and drive engagement has never been more important to marketers. In a world where both brand safety and business outcomes matter, I am extremely bullish about the future of TV. We’re just scratching the surface of what addressable TV targeting and measurement can do.”
Additional key findings examined within the report include:
- Marketers can use advanced analytics to optimize TV spend by making sure they don’t limit their data insights only to digital marketing. High-frequency data can be used to help reallocate spend by TV type, network, creative, and daypart.
- Online video ads attached to premium streaming content are more effective than user-generated and social platforms. Even with the explosion of video sharing platforms, professionally produced content has the most impact.
- TV has a significant cross-product halo effect outside of the product featured in the ad, with one brand attributing 35% of sales to non-advertised products.
“Today, cord-cutters and cord-nevers rule, and new devices, technologies, and platforms are emerging constantly – which makes it difficult for marketers and advertisers alike to determine what medium they should be using to most effectively reach consumers,” said Eric Blankfein, EVP, Chief of WHERE, Horizon Media. “This groundbreaking study found that despite these significant and ongoing changes in consumer behavior, TV remains the best vehicle for delivering a brand’s message to a larger audience.”
Turner and Neustar MarketShare have been partners since 2015 with the launch of Turner Incite, Powered by MarketShare, an advanced planning and forecasting tool that projects sales lift that brands can achieve through advertising across Turner’s linear and digital programming.
To read the full paper, click here.