TV Advertising Proves to be a Powerful Tool for New Brands

TV Advertising Proves to be a Powerful Tool for New Brands

In a bustling city filled with opportunities, a fascinating trend is taking shape in the world of advertising. Many new brands are taking the plunge into the world of TV advertising, embracing the idea that, despite challenges like viewer fragmentation and measurement issues, television can still effectively drive web traffic. Research from the Video Advertising Bureau (VAB) shows that since 2021, first-time advertisers have poured over $4 billion into TV ads.

The Power of TV in Digital Traffic

The VAB report titled “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers,” sheds some light on this phenomenon. The study examined 201 first-time TV advertisers while analyzing website traffic data between April 2020 and April 2024. It was discovered that many of these brands experienced significant positive impacts on their web traffic following their TV debuts.

Out of the studied brands, 173 monitored their website performance before launching their TV ads. The results were eye-opening. On average, these brands saw a 12% increase in their web traffic during the month they aired their TV ad compared to the six months prior. Even better, traffic continued to rise, with a 20% increase in monthly unique visitors in the months following the campaign launch.

Investment and Impact

When we dive deeper into how the investment tier affected the results, we see a clear trend. For instance, brands spending $500,000 or less during their campaigns saw an average 8% increase in unique users during their launch month and a 20% average increase over the duration of their campaigns. Meanwhile, brands investing significantly more—between $2 million and $5 million—witnessed an average 9% increase during their launch month and a 25% rise subsequently. However, the standout performers were brands that spent $10 million or more, which experienced a remarkable 36% increase in web traffic at launch and an average monthly rise of 42% throughout the campaign.

Who’s Watching?

A particularly interesting finding from the research was the performance difference based on the company type. Direct-to-consumer (DTC) brands seem to have a distinct edge. While on TV, these brands recorded a staggering monthly average increase of 622,000 unique users, nearly double the overall average of 387,000 new visitors. This highlights the unique relationship DTC brands have with their consumer base and their ability to connect via television.

Changing Investment Patterns

The study also noted that first-time TV advertisers have generally increased their investments over time. After making their TV debut, their investments jumped by 70% in 2021. However, there’s a noticeable decline in subsequent years: a 54% increase in 2022, followed by a 37% rise in 2023. This suggests that although the initial excitement is strong, brands may become more cautious as they analyze their results.

Why Measuring Matters

One crucial takeaway from this research is the significance of measuring website traffic in relation to TV advertising. Sean Cunningham, president of VAB, emphasizes that this data provides invaluable insights into how campaigns influence customer actions like consideration and sales. “This is hard data around web visits and Google search, these are specific customer actions that had to be performed,” he stated.

A Shift in Trends

As we look forward, it’s clear that the landscape of advertising is shifting. Key trends such as retail media and ad-supported TV may eventually stabilize, setting the stage for new experiments in areas like artificial intelligence (AI). However, this evolution in marketing strategies does not diminish the potential impact that TV advertising can have, especially for new and emerging brands.