Why is TV an effective way to advertise?

Industry News By Rhys Little, 22nd May 2014

“TV consistently outperforms other media when it comes to generating sales”, states a Thinkbox commissioned study, by media analytics firm Ebiquity.

The study found that it gave an average return of £1.79 for every £1 invested during the years 2011-14.  This is during the time period of major changes in technology such as tablets being released. This compares to an average return on radio advertising at £1.52, press £1.48, online display £0.91 and out of home £0.37.

The report also stated that the amount of branded searches created by TV advertising on different search engines has increased 33% from 2011-14.  This is due to multi screening: using an internet device while watching the TV.  Adverts cause the viewers to react almost instantly to what they have just seen.

The study focused on three different product categories: retail, finance and Fast Moving Consumer Goods, or FMCG.  Retail had the highest payback out of all three sectors.  Ebiquity suggests that Finance and Retail brands should be spending around 60% of their advertising budget on TV, whereas FMGG brands should be spending even more.

UK TV Advertising revenue has increased by 3.5% to a high of £4.6bn according to figures from Thinkbox.  This is now the fourth year that TV advertising revenue has increased within the UK. Neil Mortensen research and planning director at Thinkbox stated that; “It is essential we continue to prove it and explain why TV is such an effective investment”.

Could this mean even more TV adverts for us as viewers?