There Are All Sorts of Reasons Why Television Advertising is So Brilliant at Creating Success for...

7/28/2019 There Are All Sorts of Reasons Why Television Advertising is So Brilliant at Creating Success for Brands and Busine

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There are all sorts of reasons why television advertising is so brilliant at creating

success for brands and businesses both in the short-term and the long-term. Here arethe top ten, plus supporting evidence and links.

1. TV is the best profit generator2. TV has unbeatable scale and reach3. Were watching more TV than ever before4. TV is the most talked about medium both on and offline5. All TV ads are response ads6. TV is the new point of sale medium7. TV is the dominant youth medium8. TV is THE emotional medium and emotional campaigns are more

effective

9. TV is the catalyst for other media10.TV builds brand fame

1. TV is the best profit generator

There are many ways advertising is judged; was it popular, did it win awards for

creativity, are people talking about it or sharing it with friends? These are all valid,

but nothing is as important as whether or not the advertising was effective in hard

business terms. Did it actually work? If not, then it is hard to justify the investment.

TV works better than any other form of advertising. It generates the highest absolute
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volumes of sales and profit whilst also delivering the best ROI. However, you need

proper econometric analysis to unpick this.

Thinkbox is able to point to four major and impartial studies into the effectiveness of

advertising to make this assertion with confidence.

Supporting Evidence

The PWC Payback Study 1the most extensive of its kind ever undertakenover 10 years of data for over 700 brands in seven different market sectors to

unlock the payback of TV expenditure

TV delivered the highest sales return of any medium; 4.5m per 1m spent TV delivered value for longer. The first years TV investment was still

delivering at 80% of the Year 1 level in Year 2, and even Years 3 and 4 were

benefitting from TV investment in Year 1

TV also demonstrated the highest correlation between brand value (based onWTP -willingness to pay) and investment using an innovative researchtechnique to evaluate how consumers value brands

With one exception, TV was the dominant medium used by the brand leadersin each sector and all of them were above-average TV investors compared to

the average for their market. TV investment almost perfectly correlated with

brand value, far more so than for any other marketing channel

The PwC Payback Study 2added more insight into what happens to peopleswillingness to pay for brands in a downturn

Brands have a 73% chance of losing brand value (WTP) within 12 months ifthey reduce their TV spend and a 67% chance of increasing brand value if they

increase TV spend

Those making heaviest ads cuts are losing most brand valueespecially thosecutting TV

The damage from a year off TV can take five years to undo, saysData2Decisions

TV advertising has a far stronger correlation (82%) with brand value than anyother medium (the nearest is press with 47%)and over double the

correlation of the average for all other media

Payback 3,http://www.thinkbox.tv/server/show/nav.1818is an econometricanalysis of 3,000 ad campaigns across nine advertising sectors between 2006

and 2011. It compares, on a like-for-like basis, the sales and profit impact

during the last five years of five forms of advertising: TV, radio, press, onlinestatic display and outdoor. It shows that TV advertising created the most

profit (an average return of 1.70 for every 1 invested) and that its return on

investment (ROI) has increased by 22% in the last five years

Ebiquity found that TV advertising is 2.5 times more effective at creating salesuplift per equivalent exposure than the next best performing medium

The IPA StudyMarketing in the Era of Accountability27 years of IPAEffectiveness Awards data

Campaigns which used TV are on average 25% more effective than oneswhich did not

Campaigns which used TV as the lead medium are more likely to generatelarge business effects
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TV creates emotion better than other media and was far more effective indriving the bottom line (sales, market share, profit and loyalty)

Fame (which TV excels at) is at the heart of the most effective advertising Liking (which TV excels at) an ad is the best predictor of business success The study also showed that TV is getting more effective over time; it has

increased its lead over all other media channels in each of the last threedecades. In fact, the report concludes dont neglect TV. Far from being dead,

TV advertising remains one of the most effective and efficient media. New

technology and increased competition for viewers may actually be making TV

more efficient, not less

Further links:Effectiveness

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2. TV has unbeatable scale and reach

Television has always had the capacity to reach a massive audience. Commercial TV

now offers a plethora of channels and programmes and can reach over 70% of people

in one day. It is TVs ability to deliver these numbers and in a short space of time that

is a key USP for the medium.

In addition Event TV and programmes like Britains Got Talent and ChampionsLeague Football are bringing in even bigger audiences, particularly for hard-to-reach

viewing groups (like young men aged 16-34), as well as making famous the

advertisers associated with them.

This capacity, unique to TV, can also serve to make brands seem bigger than they

really are, instilling a sense of authority and stature and re-enforcing that TV is the

biggest game in town.

Supporting Evidence

You can reach 71% of people in a day on commercial TV, within a week youcan reach 93% and within a month, 98% - no other medium can better

(Source: BARB)

Britains Got Talent peaked at 10.9m million people on Saturday, 28 April2012

The average viewer watched 47 TV ads a day The UK as a whole watched 2.7 TV billion ads a day

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3. Were watching more TV than ever before

Linear TV viewing in the UK has been steadily breaking records in recent years until,

in 2010, it broke through the 4 hours a day mark for the first time. This was an

astonishing vote of popularity by the viewing public. We now spend more than a day

a week (over 28 hours according to the Broadcasters Audience Research Board

(BARB)) watching broadcast TV. And dont forget that this doesnt include all the

TV BARB doesnt yet measure, like out of home, online or mobile TV. This accounts

for a minimum of at least an hour of extra viewing.

Supporting Evidence

In the UK we watched 28 hours, 14 minutes of linear TV a week in 2011 The daily average was 4 hours 2 minutes each And commercial impacts increased by 2.6% yoy in 2011, having grown by

19.6% over the last five years to a new record high Touchpoints 4 (5,572 sample; media usage monitored in real time; all media

exc outdoor) shows people spend far more time watching TV than with any

other medium; (TV 49%, Radio 26%, Internet 21%, Newspapers 3% and

Magazines 1%)

Time spent with a medium is a poor way of assessing its effectiveness; mostpeople would accept that a minute of TV advertising is more powerful than a

minute of, say, radio. However, if we compare time spent with each medium

against their shares of advertising revenues, TV is significantly undervalued

The growth of commercial viewing has helped create a TV market whereprices are at 1980s levels in real termsspectacular value for advertisers

Further links:TV at a glance

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4. TV is the most talked about medium both on and

offline

TV is cultural glue. People love talking about TV, off- and online, almost as much asthey love watching it. The advent of 2-screening has seen TV become even more

magnetic. Many of us now share a virtual sofa with the world and having a second

screen to hand enables us to give live, online reaction to TV via social media;

uploading pastiches to YouTube, joining TV-related Facebook groups, and airing

opinions on Twitter.

Supporting Evidence

21% of people in the UK 2-screen every day (IPA Touchpoints 4) 27% haveused social networks such as Facebook and Twitter while watching TV (IPA

Touchpoints 4)
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One in five (19%) has shared TV content on a social network (ThinkboxTellyporting, 2010)

9% have joined a TV-related Facebook group (Thinkbox Tellyporting, 2010) 40% of primetime tweets are about TV, says Twitter

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5. All TV ads are response ads

We all know that TV makes people do things, from voting for our favourite reality

contestant to ordering something online, and the advancement of technology has made

it even easier to respond to television. Driving viewers to do something (increasingly

online) is now a key objective for many advertisers.

Thinkbox commissioned MediaCom to examine this further and study the link

between TV spots and web activity conducted within a 10 minute timeframe of the

TV ad broadcast. What they found is that all TV ads will create an online response,

even if response is not the primary objective, and because they can now be instantly

searched for, shared, copied and appraised at the click of a mouse, this is adding a

whole new dimension to response advertising.

Supporting Evidence

All TV activity will illicit an online response. For example, 94% had goneonline as a result of seeing something on TV in the last year (Source: OnlineJourneys with The Best Organisation)

25% with internet access at home concurrently watch TV & browse the netevery day (Source: IPA Touchpoints 4)

Those who view concurrently spend around 31 minutes per day doing so(Source: IPA Touchpoints 4)

As a result of seeing a TV ad, 57% agree they have conducted an onlinesearch, 36% agree they have visited a brands website to find out more, 28%

have searched the net to find out where to buy the brand and 21% have

purchased online - Source:TV+Online: better together(a joint study with the

IAB commissioned from Q Research)

TV ads trigger online activity. Approx 60% of all immediate response to TVads is via an online route. This has increased from c15% 10 years ago -

Source:The new rules of TV response (commissioned from MediaCom)

Even pure brand ads with no call to action generate an immediate webresponse. - Source: The new rules of TV response (commissioned from

MediaCom)

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6. TV is the new point of sale medium
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ThinkboxsTV + Online study, with the IAB (TV & Online: Better together),

demonstrated that, for the most digitally enabled people, TV is often concurrently

consumed with the laptop open and online. People are increasingly ready and able to

use it to find out more or communicate about the content they are watching on TV,

both programming or advertising content. There are many examples of TV leading

directly to online search, comparison and purchase and strong evidence that, withoutTV, online activity would be less effective. The journey from TV to purchase is now

much shortereven immediatethanks to the internet.

Supporting Evidence

Amongst the TV + Online sample concurrent consumption of TV and online isfast becoming a regular event

We saw in the study anecdotally how that can lead to people following upwhat they see on TV with immediate online action, via search, website visits,

purchase. A brand can go from initial awareness to sale all within the same

commercial break People who were registered on retail websites could immediately place items

they had seen in a TV ad on their shopping list

In total, 75% of the sample could recall acting on at least one TV commercial,compared to 52% who could recall acting on an online ad They are generally

more positive about TV advertising across all its roles, but particularly at the

start of the consumer journey

Consequently, more of them say they have been persuaded to purchase onlineby a TV ad than by online advertising 52% of people claim to have shopped

online while watching live TV (Thinkbox Tellyporting research, 2010)

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7. TV is the dominant youth medium

TV is the dominant youth medium. It remains the medium younger people spend the

most time with. Plus, young people also watch more additional TV online than most.

Young people have always been lighter TV viewersbut they grow into adults and

we should always be careful not to confuse life-stage behaviour with long-term

trends.

Supporting Evidence

15-24s spend 43% of their media day with linear TV (IPA Touchpoints 4,2012)

Young people watch a lot of TV, and it is increasing for 10-15s and 16-24s 10-15s viewing has grown 11% in the past 5 years; 16-24s has grown 10%. Young people particularly like commercial TV: it accounts for 72% of 16-34s

viewing

As a consequence of more viewing, younger people are watching more ads.10-15s watch 7.7% more ads now than 5 years ago; 16-24s watch 22% more
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Within the 16-24s group, around 1.5m students living away from home are notcounted by BARB during term-timeand they watch a lot of TV

Further links: The Secret Life of StudentsandTV and young people

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8. TV is THE emotional medium and emotional

campaigns are more effective

In advertising, we have always known anecdotally that strong creativity means more

success, but there was little proof of the link. We now have the beginnings of adatabank of proof, not least a study called The link between creativity &

effectiveness, by the IPA, in association with Thinkbox. This analysis, by the

distinguished marketing consultant Peter Field, looked at 435 campaigns over a

sixteen year period (1994-2010). It fused the Gunn Report database of creatively-

awarded ad campaigns with the IPA Effectiveness Databank, home to ad campaigns

which have proven their effectiveness, to examine any link between the two.

It is TVs ability to create deep, long-held emotional brand associations that is one of

its most unique benefits.

Supporting Evidence

The link between creativity & effectiveness (2010), by the IPA in association with

Thinkbox, found that:

Creative campaigns are 12 times more efficient at delivering business success. The more creatively awarded a campaign, the more effective it becomes. Creatively awarded campaigns are much more likely to be emotional than

rational (44% vs. 19%).

Investing in creativity is a powerful way to achieve fame (i.e. buzz).

Creatively awarded campaigns that invest strongly in Excess Share of Voice(ESOV) perform particularly well, suggesting that many creative campaigns

could further improve ROMI by investing more in Share of Voice (SOV).

Despite generally being disadvantaged by lower levels of ESOV, creativelyawarded campaigns still generate more and greater business effects than non-

awarded ones.

With the same level of ESOV, creatively awarded campaigns would havedriven twice as much market share growth as non-awarded ones.

35% of consumers ranked Gunn awarded campaigns as highly liked versusjust 20% for non-Gunn awarded campaigns.

In Marketing in the Era of Accountability, the IPA proved that emotional adswere 94% more effective than rational or informative ads.
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9. TV is the catalyst for other media

TV advertising doesnt just work for whats being advertised, it also creates a halo

effect across a brands portfolio. So, for instance, if a beauty brand advertises a

shampoo product on TV, the campaign is likely to boost sales of its other products,

such as body spray or moisturiser; if a bank advertises a mortgage product, its home

insurance and current accounts will benefit. And TV also makes other elements of

advertising campaigns work harder; it is other medias steroid. These facets of TV are

often missed and so are another cause of the misattribution of TVs powerful effect.

Luckily, econometric studies can unpick them

Supporting evidence

38% of TVs total sales effect is felt by products not directly advertised(Payback 3)

TVs effects are felt by all accompanying media, but are most starkly seen incombination with radio advertising, where radios effectiveness is increased

by up to 100%, and with branded search, which a typical TV campaign

increases by up to 35% (Payback 3)

The Direct Marketing Association (DMA) found that when TV is added toother response-gathering media it improves their performance dramatically:

o Print response rises by 92%,o Direct Mail by 96%o Online responses increased by 164%.

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10. TV builds brand fame

Quite simply TV is the best medium for making and keeping brands famous. From

Hovis to Yeo Valley to PG Tips, we recognise the truth of this intuitively, and nearly

all of the most famous brands have famous TV campaigns.

Investing in creativity is a powerful way to achieve fame (i.e. buzz and talkability).

Brands can buy awareness but not fame; and fame is proven to be at the heart of the

most effective advertising

Furthermore and through the most thorough and impartial examination of the last 27

years and 880 Advertising Effectiveness Awards (the best of the best), the IPA has

proved that no matter what size your budget, TV makes campaigns more effective and

it also outperforms all other media channels.

Supporting evidence
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Campaigns which used TV were on average 25% more effective than oneswhich did not (source: Marketing in the Era of Accountability, IPA)

Emotion and fame (at which TV excels) were the most effective creativestrategies (source: Marketing in the Era of Accountability, IPA)

The link between creativity and effectiveness research analysed the correlationbetween campaigns' performance across a wide range of the worlds' mostrespected creative awards determined by The Gunn Report, and their

performance in hard business terms recorded in the IPA Effectiveness Awards

Databank between 2000 and 2008. It reveals a direct correlation between

strong advertising creativity and business success and that high levels of

creativity make advertising campaigns at least 11 times more efficient

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thinkbox 2013

Discover the power of TV advertising

There are all sorts of reasons why television advertising is so brilliant at creating

success for brands and businesses both in the short-term and the long-term. Here are

the top ten, plus supporting evidence and links.

Associated content,

Getting started on television

There has never been a better time to start adding the power of TV to your

marketing, as scores of new-to-TV advertisers are finding out. This link will

give you some guidance on how to get started and also who to get in touch

with, both at Thinkbox and at the TV companies.
http://www.thinkbox.tv/server/show/nav.1372http://www.thinkbox.tv/server/show/nav.1345#homehttp://www.thinkbox.tv/server/show/nav.1345#homehttp://www.thinkbox.tv/server/show/nav.1345http://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=xa-4e92afbe7b0d348c&source=tbx-250&lng=en-US&s=linkedin&url=http%3A%2F%2Fwww.thinkbox.tv%2Fserver%2Fshow%2Fnav.1345&title=thinkbox%20-%20Discover%20the%20power%20of%20TV%20advertising&ate=AT-xa-4e92afbe7b0d348c/-/-/518796f170111100/2&frommenu=1&uid=518796f13f3da0a9&ct=1&pre=http%3A%2F%2Fsearch.yahoo.com%2Fsearch%3B_ylt%3DA0oG7llglIdRBycAmCOl87UF%3B_ylc%3DX1MDOTU4MTA0NjkEX3IDMgRhbwNhbwRjc3JjcHZpZANCdi5XVlVnZXVyREQ4QlNTVVlRd3FRUk0ySnpIaDFHSGxGUUFERFpTBGZyA3NsdjUwMi15ZmY1MARmcjIDc2J0bgRuX2dwcwM4BG9yaWdpbgNzeWMEcHFzdHIDcG93ZXIgb2YgYWR2ZXJ0aXNpbmcEcXVlcnkDcG93ZXIgb2YgYWR2ZXJ0aXNpbmcEc2FvAz&tt=0&captcha_provider=nucaptchahttp://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=xa-4e92afbe7b0d348c&source=tbx-250&lng=en-US&s=linkedin&url=http%3A%2F%2Fwww.thinkbox.tv%2Fserver%2Fshow%2Fnav.1345&title=thinkbox%20-%20Discover%20the%20power%20of%20TV%20advertising&ate=AT-xa-4e92afbe7b0d348c/-/-/518796f170111100/2&frommenu=1&uid=518796f13f3da0a9&ct=1&pre=http%3A%2F%2Fsearch.yahoo.com%2Fsearch%3B_ylt%3DA0oG7llglIdRBycAmCOl87UF%3B_ylc%3DX1MDOTU4MTA0NjkEX3IDMgRhbwNhbwRjc3JjcHZpZANCdi5XVlVnZXVyREQ4QlNTVVlRd3FRUk0ySnpIaDFHSGxGUUFERFpTBGZyA3NsdjUwMi15ZmY1MARmcjIDc2J0bgRuX2dwcwM4BG9yaWdpbgNzeWMEcHFzdHIDcG93ZXIgb2YgYWR2ZXJ0aXNpbmcEcXVlcnkDcG93ZXIgb2YgYWR2ZXJ0aXNpbmcEc2FvAz&tt=0&captcha_provider=nucaptchahttp://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.801http://www.thinkbox.tv/server/show/nav.801http://www.thinkbox.tv/cookies/http://www.thinkbox.tv/cookies/http://www.thinkbox.tv/server/show/nav.802http://www.thinkbox.tv/server/show/nav.802http://www.thinkbox.tv/server/show/nav.909http://www.thinkbox.tv/server/show/nav.909http://www.thinkbox.tv/server/show/server/show/nav.909http://www.facebook.com/pages/Harvey/153392844680500http://www.thinkbox.tv/server/show/server/show/nav.909http://www.facebook.com/pages/Harvey/153392844680500http://www.thinkbox.tv/server/show/nav.909http://www.thinkbox.tv/server/show/nav.802http://www.thinkbox.tv/cookies/http://www.thinkbox.tv/server/show/nav.801http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345http://www.addthis.com/bookmark.php?v=250&winname=addthis&pub=xa-4e92afbe7b0d348c&source=tbx-250&lng=en-US&s=linkedin&url=http%3A%2F%2Fwww.thinkbox.tv%2Fserver%2Fshow%2Fnav.1345&title=thinkbox%20-%20Discover%20the%20power%20of%20TV%20advertising&ate=AT-xa-4e92afbe7b0d348c/-/-/518796f170111100/2&frommenu=1&uid=518796f13f3da0a9&ct=1&pre=http%3A%2F%2Fsearch.yahoo.com%2Fsearch%3B_ylt%3DA0oG7llglIdRBycAmCOl87UF%3B_ylc%3DX1MDOTU4MTA0NjkEX3IDMgRhbwNhbwRjc3JjcHZpZANCdi5XVlVnZXVyREQ4QlNTVVlRd3FRUk0ySnpIaDFHSGxGUUFERFpTBGZyA3NsdjUwMi15ZmY1MARmcjIDc2J0bgRuX2dwcwM4BG9yaWdpbgNzeWMEcHFzdHIDcG93ZXIgb2YgYWR2ZXJ0aXNpbmcEcXVlcnkDcG93ZXIgb2YgYWR2ZXJ0aXNpbmcEc2FvAz&tt=0&captcha_provider=nucaptchahttp://www.thinkbox.tv/server/show/nav.1345http://www.thinkbox.tv/server/show/nav.1345#homehttp://www.thinkbox.tv/server/show/nav.1372


10/10

Register with Thinkbox.tv

Sign up for our bi-monthly newsletters well send you all the latest from theworld of TV advertising, including news of our latest research studies and

forthcoming events. Youll also be able to download lots of useful stuff from

our website with your login. Its quick and easy to do, and you can do that

here.

Why TV is a brands best investment

Thinkbox and the Marketing Society have collaborated on this new handbook

to explain why TV advertising can make a powerful difference to your

business. It features key findings from the major recent studies of advertising

effectiveness to create a compact guide on how advertising works and, in

particular, TVs place at the heart of the most successful campaigns. Here you

will find concrete proof of how TV can work for you and how it pays back,

whatever the time scale or budget. You can also download the handbook in

handy PDF form, or navigate through to some nickable PowerPoint slides with

notes that will help you make a watertight case for investment in TV. Find out

more right here...

Other top dogs using the Power of TV

Our latest ad dramatises the powerful effect that TV can have. We thought you

might like some "at a glance" examples of brands that have recently used TV

and experienced business-transforming effects, against all sorts of objectives

from launching or building a brand to increasing web-traffic, footfall and

sales: we hope there is something here to inspire.
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