Volume 5 No. 3: Cost-effective TV advertising

To understand whether TV is a cost-effective marketing channel, we first must ask what it means for an ad to be effective.

At its most simplistic, ad effectiveness refers to how well an ad delivers on its objectives. Which means cost-effectiveness depends on how efficiently those objectives are met.

But as accountability has gained importance, ad objectives have shifted to focus on business metrics like sales or market share. Which means an ad’s cost-effectiveness today is strongly related to ideas like ROI or ROAS.

Marketing Myths

TV isn't cost-effective.

Each week, we break down a common misconception around TV advertising.

For many performance marketers, TV became an unlikely channel for two reasons. First, the price tag. The costs of production and media quickly add to hundreds of thousands of dollars, if not millions.

Second, for a long time, truly accountable TV attribution seemed impossible. Fluffy metrics like impressions failed to impress. TV didn’t have the same trackable measurability as digital.

Key word: didn’t.

TV’s not the same channel it was twenty, ten, or even two years ago. And while we could argue that TV done right has always been an effective channel, let’s focus on how it’s become easier to create an effective and cost-effective TV campaign.

Artificial intelligence and automation have reimagined media buying. Efficient media is out there, if you have the tools to access it.
Less costly production alternatives have also gained traction. High-quality video is more accessible even as consumer preferences for authenticity mean an impactful ad doesn’t have to break production budgets.
Finally, advanced measurement tools across linear and streaming mean attribution is very possible, when you set your campaign up strategically.

Why is this? TV can absolutely drive ROI. In fact, every TV advertiser should expect their campaigns to drive business impacts like revenue. Because at the end of the day, that’s what it’s all about.

Advertising Answers

Question: How do you determine success on TV?

We take the web’s most searched questions about TV advertising to a range of marketing experts who can’t help but love TV.

Answer: "First define what success looks like for you. Then determine how you actually measure that. We know TV drives top-of-funnel awareness, but as you move through the funnel, it’s also driving those people to your website and converting them into sales. That's great, but if you can’t measure both the brand and sales impacts, you’re missing out. There are so many variables that go into setting up a strong TV test. Which is why we look at clients’ businesses on an individual basis to create unique measurement plans that ensure readable and meaningful results for their campaign and overall business goals."

— Jordan Rossler, Director of Analytics

Jordan spends his time helping clients craft and execute measurement plans for their TV campaigns. Otherwise, he can be found on the golf course or working on his podcast.

Channel Changers

Follow: Ehrenberg-Bass Institute

Here we celebrate books, podcasts, videos, and influencers that are actively pushing marketing into the future.

This research institute from the University of South Australia is famous for its evidence-based approach to marketing and is the best in the world for brand management research. Using data and empirical evidence as its guide, the institute has challenged marketing concepts with shaky foundations while promoting new ideas about driving growth, the importance of awareness and reach, and relying on a scientific approach to testing marketing channels and ideas.

Our favorite insight? Brands that want to drive growth should be investing in reaching new customers rather than focusing all their efforts on building loyalty with existing customers. Why? Loyalty programs don’t work. Because customer loyalty doesn’t exist.

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